The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-30
BIG CONCERN WRECKED
AFFAIRS OF THE HERRING-HALL-
MARVIN COMPANY MIsMANAGED.
Report of n Committee Appointed by
Condition of the Concern.

NEW YORK, Dec. ga score of men,
representing 1900 shares of the preferred
stock of the Herr ng- Ha MARVIN safe Com
pany, which recently went into the hands of
a receiver, met in this city to-day to hear
the report of w. G. Taylor, Spencer A. Jen-
nings and Philip Hathaway, a special COM
mittee appointed last week to investigate
the charges of Acknowledgement on the part
of those in charge of the affairs of the COM
pany. Mr. Taylor called the meeting to
order, saying that the committee had dis
covered facts in relation to the management
of the company which were remarkable. and
which disclosed the reasons for the losses
as well as the cause for the action of the
companys most active rival in securing
judgment for 5000. Mr.. Taylor then
called on Mr.. Hathaway, who had prepared
a written report, in which he said in part:
Those of US who were interested in the
affairs of the company were somewhat
startled when short time ago we received
word that the voting trustees were to spring
a surprise US by calling a meeting for
the purpose of reorganizing the company,
at which they were determined to abandon
the name Observation-Disclosures and adopt
the new name of the American Safe Manu-
featuring Company. We were more sur
prised to learn day or two later that
Moses Mosler, our rival, was the president
OF the executive committee, and that a sec.
ond member of the committee was in close
relationship with him, which left us only
one representative on the committee. The
next discovery was that our new plant. in
Hamilton, o., adjoins the plant in which
the MOsler safes are made. Whether or not
Mr.. Mosler ran our business in our interests
or his own | will not say, but / will say
that his attempt to put us out of business
by securing a judgment for the small
amount of $1,000 and putting our works in
charge sheriff
Il have seen such balance and profit and
loss sheets as nave been submitted by the
accountants OF this company. For instance,
in the balance sheet of 1894 the sum of
$1S0.0O0 paid as quarterly dividends to pre-
ferred stockholders, was set down among
the assets of the company. The same ball
ance sheet shows that during 1894 the first
year of the organization, the company lost
S22,Sl5. That was great disappointment
to us, but in 1895 the balance sheet showed
a loss of $20S647. In each instance the
depreciation in the value of machinery was
omitted In 1894 the p I Se EDS Of the sales
producing the safes is placed at 1866, $751; and
the running expenses are placed at $377 1857.
In 1885 the proceeds on the output amounted
to only ST. 652, 49, and the running expenses
were advanced to $515,723 Listen to some of
the items: $97 1856 tor rent; $74. 724 for taxes
and assurances; S26.OC0 salaries for man
ayers, and 900 Office rent. This out of a
gross output of $10O0,O00. your current ex
penditures have been run up to more than
one half that amount.
Now gentlemen, all / have to say, in
conclusion, is that we paid 100000 too
much in the start We have lost $1O9O,OG0
and have got $1000,000 left. / believe that
81, 900 is worth saving, and 1 am in favor
of the appointment Of a committee to take
immediate steps to reorganize the company
in order 70 save what we can
Mr.. Hathaway Mr.. Taylor and II. S.
Tenney were appointed a committee to go
on with the investigation, an0 were en-
powered to levy tax of Is cents upon each
share of preferred stock to secure funds to
defray the cost of instituting legal proceed
ings to have the courts in Ohio remove the
receiver secured in that State by Moses
Mosler.
A few of the holders of common stock met
at the office of Lawyer A. E. Woodruff,
who has been retained to look after their in.
terests. Mr.. Taylor also present. and
on his promise that their interests would be
looked after the meeting adjourned without
action.
The sheriff to-day received an attachment
for $l2S6 against the Herring Hall Marvin
Company, safe manufacturers. in favor OF
Warren c. Brundage on assigned claims Of
Dean & SHIRLEY for money loaned and on
notes.