Democratic Northwest and Henry County news. [volume] (Napoleon, O. [Ohio]) 1894-1905, 1894-05-31

( ness WORKINGS VI the cUncon: ne
came from Cincinnati originally, and,
although comparatively young. dis
| played so much shrewdness and famil-
iarity with the trade that he arose rap
| idly to o leading position in the COM
pany. He conducted the details of the
receivership, while Mr.. Young fur
nished the thought aud management
that have turned an apparently bank
rupt corporation, by means Of reorgan-
ization, into a strong and promising
enterprise.
Following the Cordage failure as a
sample of such affairs, it can be stated
that so soon as Young and Lozer were
appointed, had qualified through their
bondsmen and taken their oaths OF
| office, they took possession of the busi-
ness. Mr.. Young was the active
spirit, and therefore his name will be
used almost solely in narrating what
was done. 1t should be borne in mind,
however, that Mr.. Lozer was associ-
ated closely and consulted always in
every step that was taken. After
Young had taken possession of the
office of the Cordage company, I35
Front street, New York, he sent for
the creditors. Perhaps it would be
more accurate to remark that the
creditors came without invitation.
They wanted to know where they
stood. They filed their respective
claims and asked for justice. There is
no preference in such cases. The re-
ceiver regards every claim primarily
as of equal Importance. But the cred
1tors are always very pressing and
very persistent. Each considers his
claim as paramount. In q case OF
the magnitude of the one under con-
slderatlou, it requires firm head and
determined mind to conduct matters.
Mr.. Young possesses those qualities.
After he had looked the ground over
and formulated plan of operations,
he stuck to his decision. Nobody
could move him. 1t will always re-
dound to his credit, that the big banks
and large banking houses of the me-
tropolis, nearly all OF whom were deep
ly concerned in Cordage, came around
to Young's views, after energetically
opposing them at the start.
Mr.. Young originated new idea in
receiverships during the Dixon crucible
REORGANIZATION, and he followed the
same idea in Cordage. Ordinarily, and
in fact almost uniformly, it is the duty
OF receiver to wind up the business,
pay the creditors as much as possible |
and report the results to the court. |
Young adopted novel plan. When he |
found the concern could be continued |
at profit, he advised the court that it |
should not be wound up. 1t used to be |
the custom, in case raw material was |
on hand, to convert such material into
a manufactured product, sell the prod
uct and then stop operations. Young
reversed this mode OF procedure in the
Dixon case and repeated it in the Cord
age. He made up his mind it would be
folly to wind UP the concern. If that
were done the creditors would only get
from forty to sixty per cent. of their
claims, the numerous enterprises inter-
ested would be sacrificed and one of the
great arteries of trade would stop flow
ing. He advised that manufacture be
continued and that the entire project
be kept in business and allowed to grow
and expand. The chancellor followed
his suggestion, although he took big
risk. 1t shows the regard the chancel-
lor had for Mr.. Young's Judgment that
he permitted his wishes to be carried
out simply upon the latter's request
and without any personal examination
Of the matter.
The creditors were at first indignant
and surprised at the receivers course,
and then, amazed at his firmness, they
gradually became converts to his plan.
They all signed documents concurrlng
IN his methods, and from that time on
the task was comparatively easy. Mr..
Young says he spent day after day con-
versing with the various creditors.
Many Of them threatened him, others
argued with him, and still others
begged him to desist To all of them
he was pleasant, but dignified and de-
He outlined his scheme and
refused to swerve from it. He told the
creditors if they waited and were pa
tient and accommodating, they would
come out ahead. If they baked and
refused to assist, they would be lucky if
they got half of what was due them.
After he had conquered the creditors,
Mr.. Young started with the reorgani-
zation project. A magnificent set of
men were selected Dy the creditors TO
undertake the work-most of them
we're bank presidents. Young declined
10 accept the men selected. He de-
,lined not because they were unaccept-
able, for they were all eminently satis-
factory, but because, he said, If the
public learned that heads of large
banks were interested it would at once
something was wrong and an
,ther panic would ensue right on top OF
The one that prevailed last summer.
The bank men agreed with him, and
she reorganization committee finally
chosen consisted of members OF banking
irms and business men,.
It is a matter of recent history how
we'll this committee did its work. The
were assessed, a new COM
oany was organized to take over the
I'D, ard new set of securities was
ssned. ,Tha creditors claims wereaar-