New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-11-29
HARPER & BROS. ASSIGN.
STATE TRUST COMPANY IN POSSESSION
OF THE PUBLISHING HOUSE.
BUSINESS TO GO ON UNDER COLONEL
HARVEY. WHO is APPOINTED AGENT FOR
THE ASSIGNEE, AND AT WHOSE IN
STANCE THE ACTION IS TAKEN
]. P MORGAN & co. THE PRIN-
CIPAL CREDITOR

STANCE THE ACTION is TAKEN
]. P. MORGAN co. THE PRIN-
CIPAI. CREDITOR.
The business and assets Of the publishing
firm Of Harper e. Bros. yesterday taken
possession OF. as a preliminary to the appoint
ment OF receiver. by the State Trust Com
pany. acting in behalf Of the first mortgages
Of the property. Although the proceeding was
in the nature of a mortgage foreclosure, the
step was taken upon the suggestion of the d.
rectors of the firm and with the friendly con-
currence of j. Plerpont Morgan. the largest
creditor 1t has been known for some time that
Harper & Bros. were in financial difficulties
The first public knowledge Of this fact came to
light some months ago. when it was reported
that a consolidation Of the firm with Doubleday
& Mcclure had practically been completed.
For reasons which not stated at the
time, but seem clear now, the negotiations were
not carried into effect But on November II
the house reorganized, with Colonel G. b.
NJ Harvey as It's president At the same time
Colonel Harvey purchased a large block or
shares in the company, the exact amount OF
which could not be ascertained at the time. but
was said to be in the neighborhood of S1,OOO,0OO
par value the price paid by Colonel Harvey be-
ing $50 a share. 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 posi-
tion to meet It's maturing obligations.
AT COLONEL HARvEY's INSTANCE.
From statements made public last night 1t
appears that the action of the State Trust Com
pany was taken at the instance Of Colonel
Harvey himself, who, a result Of a personal
investigation OF the affairs of the firm. frankly
admitted that. to attempt to put the corpora
tions finances upon sound and durable basis
while staggering under so heavy a load Of In
debtedness, without beginning to build up the
business again from the bottom, would be little
short Of insane" In taking the course he did
Colonel Harvey acted with the consent and ap-
proval of the members of the Harper family and
OF the principal creditors. Although ]. Pier
pont Morgan willing to advance more
money to the firm, Colonel Harvey in a state
ment given out last night made 1t plain that
he was unwilling to assume any responsibility
for the payment of interest upon the S35OOOOO
mortgage which rests upon the property and
the settlement of unsecured claims amounting
approximately to S2000000, without efecting
first thorough readjustment Of the company's
finances. For any one to take upon himself
such an undertaking would, he stated, be an
impossible task. Consequently In justice to
himself, the company and its creditors, he de-
cided after consultation with each member Of
the Harper family that the only possible solu-
ton Of the difficulty to resort to the course
which has been followed.
This course, he believes, will place the COM
pany In position which will assure ultimate
payment in full to it's creditors A special clause
In the mortgage held upon the property enabled
of Truct true nd fba
mortgage. to take possession of the assets and
operate the business at any time. It was under
this clause that 1t stepped in yesterday and ap
pointed Colonel Harvey to manage and control
the firm. Formal proceedings will be insti-
tuted for the appointment Of the trust company
as receiver of the corporation with Colonel Har-
vey 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 devote their entire energies to rebuild
ing the business and strengthening the affairs
of the famous old publishing house.
REFORMS ALREADY CARRIED OUT.
Reforms have already been carried out which
will result in a saving of more than 100000
year. and with the effecting OF reorganization
those interested in the company have confidence
that it will enter upon a fresh career OF pros
perity.
The first public intimation that was forthcom-
ing Of yesterdays developments was the pasting
of the following notice upon the doors of the
premises in Franklin Square:
All persons will please take notice that the State
gage made by the corporation Of Harper & Bros.
to the state ate TTSSt "a eedn Of IA
OF said mortgage, has entered into and upon all and
Of the snG a 8HG
tended to be conveyed by said moftgageh ana o eacS m
HarPers weekly Hsrpers Bazar, s,a and 10 Hari lar
until further notice. neither the corporation OF OF
Harper & Bros. nor It's agents or servants. Will
manage or control said mortgaged property or
premises or 10 conduct the business thereof . :,
NJ Harvey to be its agent in the possession Oper-
alton. management and control of the said property
he will be respected accordingly. BY order,
u" ~ THE STATE ,6ETsToS TRTsTTo So4PAiSSY PFe.iSsnt
Attest: 10y H. {" NJ NJ FRANCIS. Tf Secretary.
CORRESPONDENCE WITH MORGAN & co.
In order that it might be known that the ac-
t,on taken by the Trust Company was by re-
ouest of the members Of the corporation. the
following correspondence was given out for
publication last night
New-York, November q. 1899.
Messrs J. p Morgan & Co. New ork ,
pear srs II is due to you. as the principal cred
itors of Harper & Brothers. to know that, owing 70
The financial strlngency and the fact that the bulk
of our assets is available for quick realization
or Collateral purposes. the company may and prob
ably will be unable to meet It's maturing oblga-
tions Moreover, our new president, Mr.. Harvey,
insists that the finances OF the company must be
readiusted in such way as TO enable him TO give
his Undivided attention 10 the business and ed
itOriaI work and ourselves feel that In the
present situation, we have not the moral rlght 10
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
10 avail ourselves OF your offer TO Increase
the amount OF your loan. and to seek your CO.
operation in another way. better adapted, in our
Judgment TO conserve the interests OF all our cred
itors
We feel ernboldened to make this request, not be-
cause OF business necessity on your part but be-
cause OF the personal friendship and sympathy you
have always shown for and the great pecuniary
service you have rendered 10 Harper x Brothers
in the past. II is due you that we should, as We
do now, express our deep appreciation OF and sim
cere gratitude for such assistance without which
our could hardly have maintained It's position
The present assets OF the company have been
Justly estimated being far In excess Of It's exist
ing liabilities but they are of such character as