The Providence news. (Providence [R.I.]) 1891-1906, 1897-12-04
ANOTHER RECEIVER
FOR KENT & STANLEY co.
Appointment Of Treasurer Huxley Agreed to After Long
Battle in Appellate Court.

Chief Justice Matteson and Justices
Stiness and Iillinghast heard the appli-
cation of the American National bank
and the Rhode Island National bank for
the appointment OF temporary receiver
for the kert a. Stanley company, limited
AMI the hearing was at times OF very
earnest nature. The result was sort of
a compromise. for though benjamin III.
Child, who was appointed a few days ago
custodian of the property, remains as re-
ceiver he has an associate in Treasurer
Edward e.. Huxley OF the now insolvent
corporation. 1t was admitted today that
the Kent a. Stanley company will go in-
to insolvency. There was a very earnest
protest on the part Of the company
against the appointment Of any receiver,
James NJ Ripley and Wilson Il Jenckes,
its counsel claiming that there should be
no receiver, the corporation being about
To 90 into insolvency, and the present
holiday time WAS very important one for
the works to be run under the charge OF
the corporation officers
Messrs Richard Is. Comstock and
Cyrus NJ. Van Slyck, counsel for the
banks, urged that the necessity for the
appointment OF receiver was apparent
as the corporation affairs had not been
successfully managed.
Frank a. Chase, cashier OF the Rhode
| Island National bank. and one OF the di-
| reotors of the Kent * stanley company,
| was witness. He testified that on No
| vember IL the amount OF money due by
the Kent X Stanley company was $751;
| coo, that there was one lien OF $40 0OO on
| the property of the corporation, while
| Bishop, the contractors claim on the
| Manufacturers building, was with inter
| est S6i, 900. Witness WAS present at the
| meeting OF stockholders held previous to
| November II.
"Do you know, !" asked Mr.. Comstcck,
"if the corporation has any quick assets
to meet these claimsf"
"It has not, )" was the witness reply.
Mr.. Com stock: "Do you know the
| amount of the assets of the company"
Mr.. Chase: "No, / cannot express an
opinion on them.
Mr.. Comstock: "Can you tell the
amount OF mortgages on the company's
property?'
Mr.. Chase: "Ihere IL n mortgage of
| Sl76, 600 in the Manufacturers building"
Mr.. Ripley here questioned il IL was
necessary to 70 into the particulars uf the
company's Indebtedness, saying, he adj
mitted the corporation was. insolvent.
The court permitted the examination TO
go on anu DIT. Cnas6 kalu tner9 was
mortgage on the Enterprise building
amounting to Sf7, 500.
Mr.. Comstock: Have you any idea of
how much merchandise the company has
on handY'
Mr.. Chase: "No, have not. This is
the holiday season and much of 1t Is being
| moved"
Mr.. Comstook: Do you know the value
| OF these buildIngs"
Mr. Chase: "No, / know what they
carry them for on tho books. 4"
MIR. Ripley: What do they carry them
for on the booksi''
Mr.. Chase, Both buildings arc carried
for $780, 000.''
In answer to questions by Mr. Van
Slyck on cross-examination Mr.. Chase
said he had been "a member of the board
Of directors of the corporation since the
reorganization of the corporation and
was one of the members OF a committee
appointed at meeting of the stock
holders previous to Nov. IL, to see IL
settlement could not be made with credi-
tors on the basis OF 40 cents on the dollar
. Ibis committee, witness stated. had
first conferred with the banks holding the
corporation paper and at the meeting of
tho bank representatives the Rhode
Island National Bank, the First National
Bank OF Pawtucket, the Second National
Bank. the Woonsocket National Bank,
and the Smiihfield National Bank were
Bank considered the proposition OF settle
ment later
Mr.. Van Slyck. "What was the result
of the meeting OF the bank representa-.
tivesg'
Mr. Chase, "while none of tie repre-
sentatives OF the banks would promise TO
bind their institution they agreed to
recommend the settlement. -
Mr. Van Slyck ssWora tta nssats m thu
corporation discussed at this meetinR?"
Mr.. Chase, Yes. hoy were carefully
gone over.
Mr.. Chase then said that there was next
n meeting o: the large rchandise crcii-
tors, and all but one of these agreed to
acopet the proposition OF settlement; the
assts Were not examined as carefully at
this meeting as at the ono OF bank repre-
sentatives.
There was then a meeting Of stock
holders and a committee appointed to
arrange u settlement on tho basis of 40
per cent. and this committee consisted of
the directory and others MIR. Chase was
proceeding To give the names of the mein-
bers of this committee when counsel In
the case got into discussion which
brought his testimony to n close.
Mr. Ripley and Mr.. Wilson both said
they were endeavoring to show that the
company had acted in good faith.
Judge Stiness said no one was question
ing the good faith OF the company.
Mr. Riph y,obJected to the appointment
Of a receiver saying the corporation had
taken stops to go into insolveny that IL
was taking no more orders, but was max.
ing up holiday goods which could be only
manufactured ana disposed of under the
officers of the corpor Itiou.
Mr. Jenckos said there was no intima-
tion that tho company's affairs had not
been we'll conducted. Mr.. Ripley again
said the officers OF the corporation could
best manage Its affairs until the insol-
vency proceedings were begun and Mr..
Wilson asked for the appointment OF
second trustee who understood tho bust.
ness after the court had intimated ro.
cciver must bc appointed as the American
National hank had been no party To the
proposed settlement He said ne had no
objection To Mr.. Child.
MIR .leDckes suggested Mr. Huxley
treasurer of the company as receiver with
Mr. Child. MIR. Comstock and MIR. ~vok
objected to the appointment of Mr.. Hux.
ley