The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-11-29
RECEIVER IN CONTROL
Firm of Harper & Brothers Nar-
rowly Averts Bankruptcy.
TWO MILLIONS IN CLAIMS
President Harvey Assumes Control as
Agent for the State Trust Com
pany A Reorganization
of the Old Firm.

New York, Nov. 2S.-The State Trust
company, as trustees of the first mort
| gage of Harper & Brothers, issued to-
day the following notice:
'"All persons will please take notice
that the State Trust company, as trus-
| tees under the first mortgage made by
the corporation of Harper & Brothers,
| to the State Trust company. as trus-
tee, in pursuance of provisions of sec
| ton 2 of article of said mortgage, has
entered into and upon all and every
| part of the property and premises,
| lands, rights, interests and franchises
| conveyed or intended to be conveyed
by said mortgage, and each and every
part thereof, including the publication
Of the periodicals known as Harper's
Magazine, Harper's Weekly. Harper's
Bazaar and Harper's Round Table, and
that from this date and until further
notice neither the corporation of Har-
per & Brothers, nor its agents or serv-
| ants will have or will exercise any
| power to use, operate, manage or con-
troll said mortgaged property or prem
ises or to conduct the business there
Of
The State Trust company has ap-
pointed G. b. M. Harvey to be it's agent
in the possession, operation, manage
ment and control of the said property,
premises and business, and until fur
ther notice he will be respected accord
ingly.'
This action on the part of the trust
company was taken by request of the
members of the Harper corporation.
a,
public.
Under date of Nov. q, 1899, John W.,
James Henry, James Thorne, Henry s..
II. r. and James Harper, the members
of the firm, wrote to j. P. Morgan &
Co.. saying:
1T is due to you. the principal cred
itors of Harper & Brothers, to know
that, owing to the financial stringency
and the fact that the bulk of our as
sets is not available for quick realiza-
ton Of collateral purpose, the compa-
ny may and probably will be unable
to meet it's maturing obligations. More
over, our new president Mr.. Harvey,
insists that the finances of the compa-
ny must be readjusted in such way
as to enable him to give mis- undivided
attention to the business and editorial
work, and we ourselves feel that in the
present situation we have not the moral
right to incur further obligation which
we might not be able to meet We
consider it our duty therefore, in JUS
tice to both yourself and ourselves to
decline to avail ourselves of your gem
erous offer to increase the amount of
your loan and to seek your cooperation
in another way, better adapted, in our
Judgment, to conserve the interests of
all our creditors
THE present assets of the company
have justly been estimated as being
far in excess of it's existing liabilities
but they are of such character as to
be wholly unavailable for immediate
cash requirements or as basis for fur
ther loans. We are satisfied, however,
that with capable single-headed man.
agement which we believe we have
now secured. the property may be
made capable of earning a material
amount in excess of that required to
pay the interest not only upon your
prior lien, but also upon the unsecured
claims, amounting to approximately
$2,000.000. 1t is our anxious desire to
protect if possible, the holders of these
claims and make payment in full.
"A reorganization of the company
upon permanent and substantial ba-
sis would, we believe, accomplish these
purposes and would conserve the in
terests of all creditors, provided the
property could continue under the sole
direction of Mr.. Harvey, who has al
suit in a saving of more than 100000
year.
I'VE therefore recognize that you
should proceed to take all necessary
steps to protect your claim secured by
the collateral of your mortgage bonds
and that the trust company as trus-
tees of the fund. and the mortgage
company upon your request, will be
entitled to enter upon and take possess
sion CT the mortgaged property. In
that case we shall initiate proceed
ings for the appointment OF the trus-
tee as receiver of the corporation and
Of Mr.. Harvey as agent for the re-
ceiver hoping that a reorganization
may be effected which shall promote
primarily the interests of our credit
ors and which. we hope, will also pre-
serve the honor and dignity of the
house of Harper & Brothers, and en-
able it to enter upon fresh career of
usefulness and prosperity
Replying. the same day. J. Pierpont
Morgan & Co. say:
"Tbe downfall of the house of Har-
per G. Brothers would be national
calamity. Everything that can be done
lawfully to prevent it should be done.
Under the circumstances, we think
your plan will prove in the end to have
been the hest for all yonr creditors
and ii will receive our hearty co-opera-
ton"
President Harvey of Harper & Broth
crs to-day made d statement, saying
in part:
THE action of the State Trust COM
pany was taken primarily at my in
stance, with the full consent and ap-
prevail of the members of the Harper
family and principal creditors. The
simple fact is that neither l nor any
body else who ventured to assume the
responsibility of the manage
ment of the company without first eff
fecting a thorough readjustmelt of its
finances, w5uld have been confronted |
by herculean, if not an impossible, |
task. Every publication Issued from |
the HarDer presses will now be |
strengthened in every possible way |
without hindrsnce. ard I trust with |
the hearty corporation Of the thou
sands of friends of the great hGuSe,
whose horror. dignity and prosperity it
has haccre our d"ty - maintain
1t is said that the amount nf the j.
Pierpont Morgan mortgage is 5000 |