New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-04-17
PRICE THREE CENTS.
RECEIVERS FOR BIG MILLS.
SURPRISING DISCLOSURES ABOUT TWO
NEw-BEDFORD CONCERNS.
NOTES FOR $4,000 NOT MENTIONED IN THEIR
REPORTS TO THE STATE BY THE BENNETT
AND COLUMBIA COMPANIES - BOOK


AND COLUMBIA COMPANIES - BOOK
KEEPING TO CONCEAL LOSSES.
New-Bedford. Mass. April 16-At a meeting
OF the creditors of the Bennett and Columbia
mill corporations to-day II discovered that
50 100000 in notes Of the two concerns had been
issued. Of which no account has appeared in the
returns submitted by them to the State. Upon
learning this and that more than 100000 had
been charged to the account of the plant when
1t should have appeared profit and loss. there
by showing a surplus instead Of deficit II was
voted to place both corporations In the hands Of
receivers The disclosures which resulted from
the examination Of the affairs of the companies
showed them to be In much worse condition than
had been anticipated. and II Is left 10 the dis
cretion Of the receivers whether or not they shall
be petitioned into insolvency.
The meeting held in the Board Of Trade
rooms at noon. The first business was that OF
receiving the report Of experts who have been
examining the books. From this 1t appeared that
not only have notes Of the corporations aggre-
eating S2.4OO.000 been issued OF which no ac-
count has been made. as required by la& but
also that notes of the Lambeth Rope Company
to the amount Of $4,000 have long been carried
Further than this. the Columbia Company Il 4.
feared. is deeply involved as 20 make the future
OF the corporation well nigh hopeless. II
learned to-day that notes held by the Bennett
Mills to an amount In excess Of 100000 are in
cuded in It's Indebtedness.
The bookkeeping Of both concerns was found
to be faulty and misleading. the plant account
being sort Of refuge for troublesome balances
which have gone on increasing until they amount
20 more than 100000, most of which. In the
opinion Of the experts. should have been charged
TO profit and loss. The result is that the mills
have ostensibly been making money. when the
facts probably are otherwise.
After n full discussion OF the situation Il was
voted to place the matter in the hands Of Ave
receivers. who empowered 10 act for the
best interests Of all concerned. and to petition
the companies into bankruptcy. II such course
is deemed wise. DR.. Stephen W. Hayes Andrew
G. Pierce, jr.. Oliver Prescott. jr. Theophilus
King of the Bank Of Redemption, Of Boston. and
Frederick c. Sayles. Of Pawtucket, were
lected receivers and authorized 10 petition
the Court for appointment to act in that ca
pacity
At the meeting DR.. Hayes. the recently elected
president of the corporations. explained what
had led up TO the present crisis. He said he had
been chosen president Of the two corporations
late on Saturday afternoon. and had started an
investigation into the condition Of the mills. He
went to Boston and there found that proceed
.ngs had been begun against them He al once
secured the services Of Mr. Parker. an expert. in
Boston Mr.. Parker came to New-Bedford the
next day with his assistant. and had since been
al work with the mill experts night and day, pre-
pairing for this meeting. Mr.. Parker then read
his report. after which on motion Of Walter
Clifford. who said he represented several of the
New Bedford and Fall River creditors, the hve
receivers were appointed.
Iemuel lie Baron Holmes inquired as to the
method of issuing notes, and Mr. Parker stated
that he found in his examination no attempt 20
defraud. Mr.. Hadley. the treasurer had charged
many things 10 the plant. ard included in the
account was interest money amounting 10 more
than 100000 since the factory had been IN
oreration There was some S3O.WN or S40,WD
of expenses such interest. insurance, taxes
and labor charged to the account which looked
like a means of dsposing Of an uncomfortable
deficit All this the expert considered mislead-
ing bookkeeping. He also explained that
800 900 has been disbursed In dividends which
ought never to have been paid
o. II Sampson called attention TO the ract tnat
the mills have orders which would run them
for three months, and it is essential to NIL them
,o.o ,. -
An attachment for 100000 has been placed on
the Lambeth Rope Company by the Columbia
Spinning Company.