New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-12-14
LIABILITIES OVER s1,OOO,OOO.
AN EXPERT ACCOUNTANTS REPORT ON THE
AFFAIRS OF n. j. SCIILOsS & co.
THE FIRMS BOOKS HAD BEEN FALSIFIED BY
THE CLERK IN EVERY WAY TINT BUsI-
NESS INGENUITY COULD DEYISE-AN
INVESTIGATING Committee
APPOINTED.

A large meeting Of the creditors of y. j. schoss
| & Co.. manufacturers of boys clothing. at Nos
| 653 and Go Broadway, held at the broadway
Central Hotel yesterday. over 100 creditors peihs
| present. Walter Stanton, of Converse, stanton d
! Cullen was chosen chairman and r.. +. Choate
| secretary Mr. Kohn. of Wolf. Kohn & Ulman, at
| torneys for the assignee. read long statement
of the affairs Of the firm. prepared by Arnold Da-
| wilson an expert accountant who had been at
! work on the books for week past HIS investi-
| CATION had not been completed. but the report
| presented Mr.. Kohn said a fairly correct
| one The expert said in his report that the con-
fused condition of affairs caused by the direct
| Justification Of the books by the one VINO hah
charge of them The name was not mentioned
then but the reference to Joseph H. LOUIS
the confidential clerk of the firm, who was ar
rested on the day the firm failed. The report
went on to say that the means used were as var-
Gus as human ingenuity could devise. The lnven-
tories for 1887 TO the present time had been fals-
fled by additions to the STOCK aggregatng between
$4,000 to over $4,000 In year, and the liabilities
were reduced by $4,000 to $4,000 or 100000; he
would charge accounts with moneys paid, without
having made such payments.
The approximate statement Of the present con-
dition OF the firm showed direct liabilities s'ofo
$685. as follows: Due for merchandise on open ac
count, $2is 81; bills payable for merchandise s|"''
open accounts for cash loans ssl.sl2; bills payable
for cash loans 1853: accommodation notes used
by the firm S4,772; firm notes discounted. $S3l,loy;
stocks and bonds borrowed and used as coiateIai
ST.. i36. Besides these there contingent lhDlii-
ties for Endorsements on bills receivable. SlSooo.
The total $3.50 96. consisting OF accounts
receivable ledger value, $2J5,0i9; merchandise on
hand $2g3 54s: furniture and fixtures, Avn; Stocks
bonds ana mortg CAGES, the property OF Individual
members of the firm used as collateral >osSo-
stocks and bonds borrowed and used as collateral.
500 1876: suspended accounts. ledger Vaiue $!Vi'''
the possible salvage not being known. $1,000
The deficiency Of assets is placed at &A,.Sl.
against a surplus of capital heretofore claimed by
the firm OF over &Do.pp 1t was stated mat the
liabilities Of the firm are likely 10 be ultimately
increased as two-thirds of the creditors have scnt
in their statements showing $l9'31 more than APP
pears on the firms books
The books show in the last six years net profit,
aggregating sl9l g2i These the report stated nave
been calculated false inventories The draw
ings against these profits as appear 10y the BOOKS
from 1887 to December |. 1876 were: Nathan j.
Schoss Sl53G59 Henry J. Schoss. $lSl,9; Joseph
H. Louis $iO6i1. The accounts OF purchases ana
sales were also given for each OF the last SIX years
IL was the opinion of the creditors present that "A
committee should be appointed To make an N
vcstigation OF the firms affairs. and report 10 me
creditors what should be done regarding a settle.
ment Ii was decided that the committee shouiu
represent the several classes Of creditors, preferred
unsecured and replcvin. The committee selected ~
COMPOSED OF William y. Pierce OF Barnes. hutci-
lnson G Pierce Of Boston. Felix Sampson OF the
Riverside WOrsied Company Mr.. Lower, OF Leshei;
Whitman & Co. Max l;osenthal, OF kosenthaI
Brothers a. Co.. and \. Fredlander. of y. Fried
Ian Ter A