The Providence news. (Providence [R.I.]) 1891-1906, 1897-05-29
WILL WIND UP.
Action Taken by Stockholders in
Lambeth Rope Co.
Sensational Disclosures Made In the
Report Presented Today.

New Bedford, Mass, May 29.-Tho
stockholders of the Lambeth Rope Com-
pany meet this noon and voted TO wind up
the company's affairs at once. Authority
was given the directors TO sell property,
petition for dissolution Of the corporation
and TO petition into insolvency.
The committee of stockholders ap-
pointed at the last session rendered re-
port which was decidedly sensational.
The report was, in substance, as follows:
First regarding the SIS, 900 which tho
auditor reports ms paid for expenses we
find that tho bulk, $50, 743 30 was.paid 10
A. A. Brigham and the Manufacturers
Engineering Company for salary and ex-
penses as selling agents. At the time that
Brigham acted as "A selling agent he was
also president of this company. At the
time that the Manufacturers Engineering
Company acted as selling against the
president of that company, George L.
Patterson, was also president OF this COM
pany.
Second. referring to the SIS 600 agree
ment with Hadley, and To the fact that
Hadlcy received that amount we think it
should De offset by the SO, 900 notes held
by him, as suggested 10y the auditor leav-
ing 500, 0D0 the amount stated In the second
agreement, which Is all the company
SnOulu nave pau lOT tlt fnutHlUtTH On
the basis of that agreement. Hadley, rs
treasurer, however paid from the COM
pany's funds SO, 900 for machinery that
should have been paid by him personally.
Neither of the agreements are signed
except by Hadley personally, and even If
tho $50, 900 agreement was binding on the
company Hadloy clearly received $50 600
too much as has been explained. Fur
thermore, we are informed by Mr. Self
ridge that he wrote the agreement for
$50, O00 which was changed To $50 coo af
ter IL left his hands, and tho amount, we
find, has been written over an erasure.
This would make another so, 900 excos-
sive amount which Hadley paid to him
self from the company, "A total Of $40, 600,
and this might be Increased $40, 600, as the
machinery was probably worth not more
than $50, 000 In other words. Hadley re-
oeiyed net amount of 500, 600 under
agreements, tho validity or equity of
which we strongly doubt.
Third. The amount paid for steam
plant, $40, 4S5. 40, Is far In excess of con-
tracts on file and In excess of the value
based upon the present appraisal, allow
ing for depreciation
There were also other interesting de-
volopmonts. Incidentally IL appeared that
the president, Mr.. Patterson, did not own
any stock. He had been elected at meet
ing of the corporation in Boston, Decem-
Der -, WHcu Nr. ItSlRucu. tb tnc
time IL was understood that Mr.. Patterson
was TO buy ten shares from Winthrop
Thayer at once. but he never did so.
James B. Watkins, reported on the list
with $50 shares, declared that he never
owned IL. The committee found that his
name appeared on the list and there was
an entry showing apparently that IL was
regularly Issued To HIM hy the corpora
tion. There was Mr. Watkins signature
on IL, but tho committee was unable to
say whether IL was Mr. Watkins sigma
ture
IL was reported that there are but four
creditors OF any consequential amount.
The Hancock National Bank, the Mer-
camille Loan and Trust Company. the Citi-
Zens National Bank and d. A. Smell.
The others were for small amounts 1t
was also developed that the supposed valu
able patent rights owned 10y the COM
pany did not exist. All the company had
was one Lambeth rope machine and an
agreement Of the parent English company,
not To invade the American market.