The times., 1899-11-29
THE HARPERS INVOLVED.
The PubIishinS House in the Hands
Of II Trust Company


| NEW YORK, Nov. 2S.-The State Trust
/ Company as trustee Of first mortgage
given by the great publishing house of
Harper & Bros, took possession today of
all the property of the concern. It ap-
/ pointed as its general manager George B.
NJ Harvey, who was recently elected pres
ident Of Harper & Bros, and for the pres
ent viii conduct the business. The step is
preliminary to an entire reorganization Of
the corporation and the business and the
/ placing Of it on a solid financial basis.
The public announcement was made by
the State Trust Company when one of its
! representatives appeared at the Office of
Harper & Bros. late in the afternoon and
I nailed upon the door half way up the
stairway leading to the publication office
| notice stating that as a result of the
mortgage the company had entered into
control of the property and had appointed
G. b. NJ Harvey to be its agent in the pos
session, management, operation, and con-
troll of the property
At the same time the trust company sent
! to the newspapers similar notice and
Harper & Bros. also made the matter pub
lie. The newspapers were informed by
both the trust company and Harper &
q
/ trust company was taken by request of
the members of the Harper corporation.
/ The ortgages on which the trust com
pany took possession were made twenty
days after the concern ceased TO be a CO.
partnership and became a corporation on
October J. 1896. The corporation was cap
italized then at 81 1000 coo Money was
needed to meet outstanding obligations and
to develop the business and was borrowed
ba
was made trustee of the mortgages which
provided for the raising of $3,500, 600. A
great part of this money was loaned by
J. PierpOnt Morgan & Co. II was not
sufficient for the purpose to be accom-
plished. The increased business was not
as good as had been expected, and the
result has been that in the past four years
other debts have accumulated which
amount TO 50 900 more.
When Colonel Harvey secured a large
interest in the corporation ten days ago
and was elected president he found the loaG
of debt so heavy and the finances generally
in such a condition that radical measures
were necessary, and it was at his request
that the action mentioned above was
taken. Colonel Harvey said:
The simple fact is that myself or any
body else who yentured to undertake the
personal responsibility of the management
of the company, without first effecting a
thorough readjustment Of its finances
would have been confronted by a herculean
if not an impossible task. After a thor
Cugh investigation of the condition Of af-
fairs and the surrounding circumstances,
l became satisfied that, in order TO main
tain the proud position Harper Bros.
have always occupied in the publishing
world, and to carry on and enlarge its busi-
ness in conformity with modern ideas, it
was absolutely essential to begin at the
bottom and first Of all establish itself upon
a sound basis. After full discussion and
deliberation each member OF the Harper
family concerned and all Of the larger
creditors whom I was enabled to consult,
endorsed this judgment and recognized the
fact that the only possible solution lay in
the course which has been followed.
The net result of the action taken is
to make it possible for me and all who
are or may become associated with me, to
devote our entire energies to the actual
work before US, instead Of giving half our
time at least to financial problems. with
a practical certainty that the very best en-
deayors could only result in ultimate fail
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