Omaha daily bee., 1899-11-30
HARPER BROTHERS ASSIGN
Big Publishing House is Turned Over to
Holders of Mortgage,
PRELIMINARY TO REoRGANIzNG FIRM
Liabilities Placed mt Five md Half
MiI1ion--Assets Greatly in Excess
of that, hut Cannot he
Realized On at Once.

NEW YORK, Nov 2S.-The State Trust
company. as trustees of the first mortgage OF
Harper & Bros. today issued the following
notice:
"All persons will please take notice that
the State Trust company, as trustee, under
the first mortgage given by the corporation
Of Harper & Bros to the State Trust com
pany, as trustee, in pursuance Of the pro-
visions Of section . Of article 3 of said mort
gage, has entered into and upon all and
every part Of the property and premises,
lands, rights, interests and franchises con-
veyed by said mortgage and each and every
part thereof, including the publication of the
periodicals known as Harpers Magazine,
Harper's Weekly, Harper's Bazaar and Har-
per's Round Table, and that from this date
and until further notice the corporation of
Harper & Bros. nor its agents nor servants,
will have or will exercise any power to use,
operate, manage or control said mortgaged
property or premises or to conduct the busi
ness thereof. The State Trust company has
appointed G. NJ. b. Harvey to be its agent, in
the operation, management and control of
said property, premises and business, and
until further notice he will be respected ac-
Cordingly."
This action on the part of the trust COM
pany was taken by request of the members
of the Harper corporation The correspond
ence in the case is made public Under date
of November 27, 1899, John w, j. Henry,
James Thorne, Henry S., II. II. and James
Harper, the members of the firm, wrote to
j. Pierpont Morgan Co, saying:
Statement of Firm.
at Is due to you, as the principal creditors
Of HnrDpr E RrOg n know that Owing to
the financial stringency and the fact that the
bulk OF our assets is not available for quick
realization of collateral purposes, the com
pany may and probably will be unable to
meet It's maturing obligations. Moreover,
our new president, Mr.. Harvey. insists that
the finances of the company must be re-
adjusted in such way as to enable him to
give his undivided 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,
1--WE consider it our duty, therefore, in
justice to yourself and ourselves, to decline
to avail ourselves of your generous offer to
increase 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 creditors
The present assets of the company have
been estimated as having been far in excess
of it's existing liabilities but they are of
such character as to be wholly unavaila-
BILE 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 earning a material amount in excess OF
that required to pay the interest, not only |
on your prior lien, but also upon the un |
secured claims amounting to approximately |
$2.000,000. 1t is our anxious desire to pro-
tect, If possible, the holders of these claims
and make payment in full.
"A reorganization of the company on a |
permanent basis we believe, would accom- |
plish these purposes and would conserve the |
interests of all creditors, provided the prop
erty could continue under the sole direction
OF Mr.. Harvey, who has already effected |
reforms which will result in saving of
more than 100000 per year.
1--WE recognize that you should proceed to |
take all necessary steps to protect your
claims secured by the collateral of our bonds !
and that the trust company, on the mort |
gage, upon your request, would be entitled !
to enter upon and take possession of the |
mortgaged property. In that case we shall |
initiate proceedings for the appointment of |
a trustee or receiver OF the corporation, and |
OF Mr. Harvey as agent for the receiver, |
hoping that a reorganization may be effected |
which will promote primarily the interests |
of our creditors, and we hope will preserve !
the honor and dignity of the house of Harper
& Bros. and enable 1t to enter upon fresh
career of usefulness and prosperity"
Replying the same day, ], Pierpont Nor
gan & Co. says:
THE downfall of the house of Harper G.
Bros. would be national calamity. Every
thing that can be done lawfully to prevent
it should be done Under the circumstances
we think your plan will prove in the end
to have been the best for all your creditors
and II will receive our hearty cooperation"
President Harvey of Harper g. Bros. to-
day made a statement, saying in part:
THE action of the State Trust company
was taken primarily at my instance, with
the full consent and approval OF the mem
bers of the Harper family and OF the prin-
cipal creditors. The simple fact is that I
or anybody else who ventured to assume
the responsibility of the management of
the company without first effecting a thor
ough readjustment Of its finances would have
been confronted with a herculean IL not an
impossible, task. Every publication issued
from the Harper's presses will be strength
ened in every possible way without hind
rance and, ! trust, with the hearty CO. opera
tion of the thousands of friends of the great
house, whose honor, dignity and. prosperity
1t has become our duty to maintain"
1t is said that the amount OF the j. Pier
pont Morgan mortgage is $500 900, making
the FIRMS total liabilities $500, 900. the
creditors for $4,000. 900 being unsecured
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