New-York tribune., 1899-12-29
CONDITION OF HARPERS.
A STATEMENT FROM THE REORGANl~f
TION COMMITTEE.
URGES THE CONTINUANCE OF THE Do'i'
NESS UNDER STRONG. SINGLE HANDED
CONTRoI@sAvING IN EXPENSES
MADE BY G. b. NJ. HARVEY

MADE BY G. b. NJ. HARVEY.
At the instance OF creditors whose claims assio'
gate nearly half the entire indebtedness OF ma
per q Bros A committee of five men, OF whic"
Alexander f.. Orr is chairman. has undertaken 10
prepare and submit creditors plan OF reor-
ganizatlon. Preliminary 10 this task the committee
has prepared "A statement Of facts IN when II u
set up that the total liabilities OF Harper q
Bros on December 4. 1899. were SOs5Wo oiiniN-
ished since the date named by the turning over
OF $4,000 of bonds which leaves the total indepteo
ness $2ss3OO The secured Indebtedness Is h"1'-
600 consisting OF notes an open account anu
mortgage of 5000 secured by bonds and real estate:
The unsecured Indebtedness comprises commerci1i
paper and open accounts.
In 1896 the corporation morigaged us properly
to secure s3O0000O per cent 100 year gold ponos'
or this amount S26ijD0 stands as collateral as re-
ferred to- The remainder Of the issued oohos'
s355 600 are outstanding and controlled by the
committee for the p lrpose OF reorganization. inc
mortgage represented by the bonds covers all prop
erty OF the corporation except stock on rahu pi''S
receivable. supplies and cash on hand. omltuhs
the asset OF goodwill and plates. estimated a
s9O0C Coo value. and deductng the bond ana mort
gage s69i0O remains against the OUTSTANDING
bonded Indebtedness OF s2645OO0 or 26 per cent OF
their par value.
The estimated net available assets. not covered
by mortgage. to meet unsecured claims are SUD
stanullly S42N. In connection with this real
estate and improve aents are set down at SS5o"o
goodwill and plates Mt 100000 machinery. mer-
chandise ma 1uscrpts. drawings. etc, at sl5l.5m
and cash and bills receivable and miscellaneous Sc
curitias &29l3.
The amount of tine assets Of s426O7 az stated. Is
arrived at by delucting from the gross estimator
assets as here itemlzed. and amounting TO S2lZ"49.
| the assets covered by first mortgage and bond ana
mortgage In the sum OF 81 100000, and amounts que
| nrefarred creditors to the amount of S7.6O6.
The net Liabilities in excess Of bonded Indebted
ness are placed at Sl9626l2 and comprise bils pay
| able general creditors. manuscripts. advertising
and unexpired subscriptions, leaving net aVallaole
| assets equal to % per cent OF net aVaaole ia
bi,,ea exclusive OF cost OF receivership and iqui-
| dation
| The committee regards the foregoing estimate OF
value OF assets except as going concern 10 pe
| very excessive All OF the assets covered oy tue
| mortgage are deducted IN computing the probable
excess OF unsecured creditors because In the COM
mittee's judgment the property covered oy tne
mortgage would not realize, under foreclosure saie
| moro than enough TO satisfy the secured claims.
| Wherefore the committee concludes II the cor
| poration Is not continued as gong concern @ un
secured creditors would receive VIZ sidt PEI
anv relief Is anticipated for creditors rom lnoorse
OF commercial paper soid py 'hs =
and held as unsecured cairns ,,,or ~ n.
! made by the committee that under dlrectioh OF 10. ~
b. NJ. Harvey agent OF the o-s,inp my expenses
I'm charge OF the Proper'g, ~ oo,7i,,aIsnt 10
have been reduced :20@9 a montn elIIvaen AZ he. az
"rrttaad W. tho committees that the total loss from
the business during the first eight mon,hs Gn % ~
retrenchnents referred TO he H. certain that " =
| cornoration is now earning operating expenses si.
Harvey believes that with proper management, a.
of custody OF the courts. the business cdn earn ia
! IeeO about $4,000 above operating expenses, x.
The committee therefore recommends 70 the cisu.
,tore that the business be continued uhder httons'
! sinaIe handed control. The conm.tee mas assuI hI
rcHs Sron the holders OF practically all the pohos
~, vi,h the concurrence OF unsecured creult9t,s
/ ccntinuance may be had upon sound .n. nIla1 ~
tho corporaton's affairs is now In preparation anu
| viii be duly submitted 10 me creditors