Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1899-11-29
HARPER Z BROS. FAIL
The Great New York Publishing
House in the Hands of Its
Creditors.
State Trust Company of New York
Takes Control of the
Business.
An Attempt Will Be Made to Put
Company's Finances on Better
Basis.

New York. Nov. 20 After an unin-
terrupted career of eighty two years the
great publishing house of Harper &
Brothers is compelled to acknowledge
that it is unable to meet its maturing
obligations.
Bravely, and with a spirit which will
meet with approval in business circles
the world over, the members of the cor
poration, seeing the stress in which the
Franklin Square house is placed, de-
cline the proffer of further loans from
the banking house of j. Pierpont Nor
gan & Co.
! Upon the suggestion of Harper &
Brothers, and with the consent of its
principal creditors, j. Pierpont Morgan
& Co., the control of the business of the
corporation is now vested in the State
Trust Company, as trustee, under a
mortgage for $3,500000, held by j. Pier
pont Morgan & Co. since Nov. IT, 1896.
In addition TO the mortgage for 49,
100000, whichsis in default, the house of
secured liabilities of $4,000, 900.
Having. as trustee, entered upon con
| troll of the great publishing concern, the
State Trust Company has delegated to
Col. George b. M. Harvey, who was re-
eently elected president Of Harper &
Brothers, the management of the bust
ness, as agent of the trustee.
Col. Harvey is quoted as saying that
! the assets are in excess of the liabilities
/ 1t is regretfully admitted, however, that
! these assets are of such character as
| to be unavailable for immediate cash
requirements
on behalf of Harper & Brothers it
was announced that the new move is
| for the purpose of q reorganization up
on a new financial basis. Upon this
basis. it is stated, the present unsecured
claims can be assured to the creditors.
Business circles first learned OF the
change through an announcement post
ed on a door of the publishing house
! late yesterday afternoon. While recent
4 changes in the personnel and manage
| nent of the concern have led to fire.
quent rumors of further changes, the
\ announcement of financial trouble came
as a distinct surprise.
1t is announced that all the publica
!! tions of the corporation will be contin-
/ ued except, perhaps, Harper's Round
! Table. a Juvenile periodical, the discon-
4 tinuance of which was decided on few
4 weeks ago.
& Col. Harvey withholds the names of
the creditors representing the S2,0Uo,o o0
in unsecured claims, because. he said,
the Indebtedness was largely in paper
& which is in the hands of brokers.
The State Trust Company, as trustee
of the first mortgage of Harper q
4 Brothers. issued the following notice:
.'Ail persons will please take notice
Il that the state Trust Company, as trus-
Fl tee under the first mortgage made by
the corporation of Harper & Brothers
4 to the State Trust Company as trus-
tees, in pursuance of the provisions of
section of article 3 of said mortgage.
has entered into and upon all and every
part of the property and premises,
lands, rights, interests and franchises
conveyed and 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
Bazaar and Harper's Round Table, and
that from this date and until further
notice neither the corporation OF Har-
i per & Brothers nor its agents or SER
wants Will have any power 10 use, oper-
ate, manage or control said mortgaged
property or premises, or TO conduct The
business thereof.
The State Trust Company has APP
pointed G.. b. NJ. Harvey to be its agent
in the possession, operation, manage
rnent and control of the said property
premises and business, and until fur
J, Their notice he Will be respected accord
ingly.'
The notice was signed by Walter S
Johnston president, and H NJ. Francis
secretary, of the State Trust Company
This action of the trust company wa:
taken on request Of the members of th'
Harper corporation, as shown by tn
Following correspondence: In lettel
dated November 81 and addressed TO J
Pierpont Morgan &, Co. the member
OF Harper & Brothers say:
1T is due to you as the principa
creditors of Harper & Brothers to know
that, owing to the financial stringenc!
and the fact that the bulk of our as
sets is not available for quick realiza
ton or collateral purposes, the com
pany may and probably will be unabi
to meet its maturing obligations.
Moreover, our new president, Mr.
Harvey, insists that the finances of tn
company must be readjnsted in such ;
way as TO enable him to give his undi
vided attention to the business and edi
torial work. and we ourselves feel tina
Z in the present situation we have not tn
, moral right to incur further obligation
which we might not be able to meet.
4