Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-11-30
THE COHEN co.
THE HARPER ASSIGNMENT.
stem Taken with Concurrence OF
Morgan. the Largest Creditor
lNoW York Trihnne. NLhl

The business and assets of the publish
Ing firm of Harper & Brothers We're yes
terday taken possession Of as prelimi-
nary 10 the appointment of q receiver by
the state Trust Company. acting i'm be-
half OF tho first mortgages OF the pro-
perty. Although the proceeding was in
the nature of q mortgage foreclosure
the step was taken upon the suggestion
Of the directors of the firm. and with the
friendly concurrence Of J. Pierpont Nor
gan. the largest creditor. II has been
known for some time tnat Harper q
Brothers were I'm financial difficulties.
The first public knowledge Of this fact
came 10 light some months ago, when 1T
was reported that consolidation of the
firm with Doubleday & Mcclure had
practically been completed.
For reasons which were not stated at
the time. but seem clear now, the nego-
tiations were not carried into effect But
on November 18th the house was reor-
ganized. with Colonel G. b. IA Harvey as
Its president. At the same time Colonel
Harvey purchased large block Of shares
I'm the company. the exact amount OF
which could not DO ascertaincd at the
time but was said TO be in the neighbor-
hood of 100000 par value, the price paid
by Colonel Harvey being $50 a snare.
That this transaction did not suffice TO
put the company on sound financial
footing was admitted yesterday by the
directors, who announced that the firm
was not in Il position to meet its ma
turing obligations.
AT COLONEL HARVEY'S INSTANCE.
From statements made public last night
II appears that the action of the state
Trust Company was taken at the instance
of Colonel Harvey himself who, as a
result of a personal Investigation of the
affairs of the firm frankly admitted that
20 attempt TO put the corporations
finances upon sound and durable basis
while staggering under so heavy a load
OF Indebtedness, without beginning 10
build up the business again from the bot
tom, would be little short Of insane.
In taking the course he did Colonel Har-
yey acted with the consent and approval
of the members of the Harper family. and
of the principal creditors. Although j.
pierpont Morgan was willing 20 advance
more money to the firm, Colonel Harvey,
I'm a statement given out last night, made
IL plain that he was unwilling TO assume
my responsibility for the payment of in
terest upon the $3JOO.000 mortgage which
tests upon the property. and the settle
nent OF unsecured claims amounting APP
proximatoly TO 100000 without effect
ing first a thorough readjustment of the
,ompany's finances. For any one 10 take
upon himself such an undertaking would
he stated, be an impossible task. Con-
sequently. in justice TO himself, tho COM
pany. and its creditors he decided, after
consultation with each member of the
Harper family, that the only possible so
luton OF the difficulty was to resort TO the
course which har been followed.
This course, he believes. Will place the
company IN a position which will assure
ultimate payment in fun to its creditors.
A special clause I'm the mortgage held
upon the property enabled the State Trust
Company, as trustee unocr the mortgage,
10 take possession OF the assets and ope-
rate the business az any time. 1t was
under this clause that il stepped in yes
ferday and appointed Colonel Harvey TO
manage and control the firm. Formal pro-
ceedings will now be Instituted for the APP
pointment of the trust company as re-
ceiver of the corporation. with Colonel
Harvey as agent for the receiver. With
the financial problems of the concern
taken off his hands Colonel Harvey. and
those associated with him will now de-
vote their entire energies 10 rebuilding
the business. and strengthening the af-
fairs of the famous old publishing house.
REFORMS ALREADY CARRIED OUT
Reforms have already been carried out
which will result in saving of more than