The Topeka state journal., 1899-11-29
HARPER BROS. FAIL.
Great Publishing House Goes
Into Hands Of MOrtgagee.


company. as trustees of the first mort
gage of Harper and Brothers, has is
sued the following notice:
"Au persons will please take notice
that the State Trust company as trus-
tees under the first mortgage made by
the corporation of harper and Brothers
to the State Trust company as trustee
in pursuance of the provisions of sec
ton of article g. of said mortgage,
has entered into and upon all and eV-
I cry 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, ana
that from this date and until further
notice, neither the corporation of Har-
per and Brothers, nor its agents or
servants 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
i.The State Trust company has ap-
pointed Mr.. C. B. NJ. Harvey to be its
| agent in the possession, operation,
mana cement and control of the said
/ property, premises and business, and
! until further notice he will be respected
/ accordingly"
! This action on the part of the trust
/ company was taken by request of the
! members of the Harper corporation.
/ The correspondence in the case is made
public.
! Under date Of November %, 1893, John
! W. J. Henry James ThOrne, Henry ),
| Henry r., and James Harper. the mem
! bers of the firm, wrote to J. Pierpont
! Morgan & Co, saying:
/ 1T is due to you, as the principal
! creditors of Harper and Brothers to
/ know that, owing to the financial
| of assets is not available for quick re
| aliZatiOn or collateral purposes, the
! company may and probably will be un-
| able to meet it's maturing obligations.
! Moreover, our new president, Mr.. Har-
| vey,s insists that the finances of the
/ company must be readjuSted in such
! way as to enable him to give his un-
! divided 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
| obligations, which we might not be
| able to meet We consider it our duty,
/ therefore, in justice to both yourself
and ourselves, to decline to avail our
] selves of your generous offer to IN
! crease 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 cred
| itOrs.
THE present assets of the company
| have been justly 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 a basis for further
| loans We are satisfied, however, that
/ with capable single headed management
/ which we believe we have now secured.
( the property may be made capable of
I 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 ap-
( proximateIy 50 600, 600. 1t is our anxious
/ desire to protect. if possible, the hold
! ers of these claims and payment in full.
"A reorganization of the company
upon a permanent and substantial bas-
is, would, We believe accomplish these
/ purposes and would conserve the in
terests of all creditors, provided the
| property could be continued under the
| sole direction of Mr.. Harvey, who has
! already effected reforms which Will re-
suit in a saving of more than 100000
1--WE therefore recognize that you
should proceed to take all necessary
steps to protect your claims secured by
the collateral of your mortgage bonds
and that the trust company as trustee
of the fund and the mortgage upon
your request Will be entitled to enter
/ upon and take possession of the mort
gagged property. In that case we shall
| initiate proceedings for the appoint
! ment of the trustee as receiver of the
corporation, and of Mr.. Harvey as
agent for the receiver. hoping that d
reorganization may be effected which
7 shall promote primarily the interests
! of our creditors. and which we hope
! will also preserve the honor and digni-
/ ty of the house of Harper & Brothers,
! and enable it to enter upon fresh ca
reer of usefulness and prosperity"
| Replying, the same day, J. Pterpont
I Morgan & Co., says:
/ 'The fall of the house of Harper &
! Brothers would be a national calamity.
Everything that can be done lawfully
[ to prevent it should be done. Under the
{ circums stances, we think your plan will
| prove in the end to have been the best
for all your creditors. and it win re-
! ceive our hearty cooperation"
President Harvey, Of Harper & Bro
theirs, today made 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-
provaI of the members of the Harper
family and principal creditors The
simple fact is that neither 1 or any
] body else who ventured to assume the
personal responsibility of the manage
ment of the company without first ef-
fecting a thorough readjustment of its
finances, would have been confronted
by a herculean if not an impossible
task. Every publication issued from the
Harper presses Will now be strengthen
ed in every possible way without hind
rance and I trust with the hearty Co
operation of the thousand of friends OF
the great house, whose honor, dignity
, and prosperity it has become our duty
| to maintain