Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1894-05-06
HOW BIG RECEIVERS WORK.
The Work Illustrated by the Case
of the National cordage Co.
THE DUTY OF THE RsctlyEaHOr so LIGHT
How Messrs. Young ana i.oser Managed
Itecciyership business aud Changed
an Apparently bankrupt concern
Into an Organization Full of
Promise.

II is popular idoa that the receiver OF q
big property has soft snap This isa mis-
take, while In ordinary eases OF receiver
ships Il may not be dnicult task TO arrange
q settlement satisfactory 10 tho courts, II Is
not SO where iargc interests arc involved.
The average receiver is expected to wind up
the business. saw all he eau TO the creditors
and turn over the balance 10 the court. His
ordinary commission ia Ave pcr cent OF tho
total amonnt handled, and after ho has shown
the court that he has done all that can be- ac-
compliahed Tor the benefit OF both creditors
and the business he ia given his commission
and his bondsnen arc released.
But when Il comes TO very largo mercan-
tile, manufacturing or commercial enterprise,
the situation is different The complications
that arise are numerous. The receiver has
10 learn the huaincas to begin with. Thenhc
has to gct acquainted with all tho creditors
ascertain what their claims are and how
/ pressing they may hc aud fix up u achemo
| that will 10 mutually agreeable all around.
/ lIe has 10 mako un inventory Of the aescte
| and liabilities Whom this inventory Ia COM
! ple,cd no sizes tho situation mp and statcs
the condition ut aiiairs In report to tho
court. II tho court Ia satisfied thatt tho cred.
itors ought TO accept the conditions pro
Acrihcd BY tho receivers II issues an order TO
that eject. II Il thinks tho outlook Is bud
and the chance Of the crcdhors being repaid
Ia very slight, II orders tho receiver TO wind
up tho business and ray the creditors tho
largest percentage possible,
Probably tho bcst way To explain the work
and duties OF receiver Is TO take we'll
known case as M Illustration. No iailurc of
recent years has 80 shaken tho commercial
world and nj the time Threatened such dis
hstrous results VA that OF the National Cord
age Company, Millions OF doilara were In
yovcd when tho great corporation asked Tor
a receiver. The shares, both preferred and
common, were listed On tho New York Stock
Exchange. They had bccu selling Mt II high
figure. Good round dividends had buer
paid. The concern WIS supposed 10 be IL
splendid condition. when the crash cnnio
everybody was startled. Tho company WIZ
organized undcr tho laws OF the state Of New
Jersey. Consequently, whom It wont down
application for receiver had 10 be- made u
= the court oichauccry Of that commonwealth
+ Chancellor Mcdill heard tho motion ut Jereo!
! CITY He named the receivers. He appointed
n as frst receiver Edward +. o. Young, prenI
a dent OF the First National bank OF Jorso
4 CITY. Mr.. Young is the star rooelvcr Of tn
= country. He has made reputation IN tina
q limo. II will appear further IN that his sue
y cess with tho cordago corporation ontltlo
- him 10 tho rank no had partially attain"
= when hO pulled the Dixon Cruciblo Works
= manufacturers Of tho Dixon lead ponclli
d oruobcs. etc. ont OF hole some yeara ago.
Chancellor Mcuill appointed Young becuua
" he know has ability In the receiver line. II
B. required largehnil, which MT Young furnisho
Y without dlfloulty. Along with Mr.. Nounl
N another receiver was appointed In tho perso
X Of q. Weaver Logor, Mir. ,l.ozor was one {
y the officers ofthe National oordage companl
" He knew tho businesR workings Of the COZ
~ Germ. lie came from Cincinnati Originally
ID and although comparatively young, displaye
so much shrowdncsa and familiarity with u
70 trade that he rapidly arose to a leading pos
10 ton In tho company He conducted tho d
ol tails of tho rceoyerahip, while Mr. Your
OF furnished tie thought and management tn
D. have turned an apparently bankrupt eorpo
~ alton, by means OF reorganization, into
or strong and promising enterprise
Following tho cordago failure as snmp
Of such affairs, II can b. stated that
soon as Young and Loaer wero appolntod. HI
qualified through their bondamcn and tax
III. their oatlis OF otIlco, they took pJssossl'
iy. OF the business. Mr.. Young was tho act
d. spirit. and therefore his name VIII DO u.s.
iis almost solely Ia narmtIng what was dor
he It should be- borne In mind, however that NJ
nut Iozor WA associated closely and consult
nd always In every step that was takon. Az
iro Young had taken possession Of tho ofilec
,c. the ooriago Co., 1885 Front st., New York,
is sent for the creditors. Perhaps It would
He moro accurate TO remark TINT the creu,''
40 came without invitation. They WAn'"u