Omaha daily bee., 1899-12-29
TO REORGANIZE HARPER BROS
Committee of Five Appointed mt In
stance of Creditors to
and submit II Plan.

NEW YORK, Dec. 2S.-At the instance Of
creditors whose claims aggregate nearly
half the entire Indebtedness of Harper IL
Bros. a committee of five, of which Alex
ander Z. Orr is chairman, has undertaken
to prepare and submit to creditors a plan Of
reorganization.
Preliminary to this task the committee
has prepared a statement of facts in which
it is set up that the total liabilities of
Harper & Bros. on December IA, 1899, were
8 1858, 900, diminished since the date named
by the turning over of $3.50, 900 of bonds,
which leaves a total Indebtedness of $685.
900. The secured Indebtedness is $1,001 900,
consisting of notes, an open account and a
mortgage of $4,000, secured by bonds and
real estate. The unsecured Indebtedness
comprises commercial paper and open ac-
counts.
In 1896 the corporation mortgaged its
property to secure SO, 900. 900 of 3 per cent
100-year gold bonds. OF this amount S2,645,-
900 stands as collateral. as referred to. The
remainder of the issued bonds, 1855, 900, are
outstanding and controlled by the commit
tee for the purpose of reorganization. The
meeting represented by the bonds covers all
the property of the corporation except stock
on hand, bills receivable, supplies and cash
on hand. Omitting the asset of good will
and plates, estimated at 5000, 900 value, and
deducting the bond and mortgage, 1894, 900
remains against the outstanding bonded in
debtedness of 81, 645, 900, or 26 per cent Of
their par value.
The estimated net available assets, not
covered by mortgage, to meet unsecured
claims, are substantially SAP, 6O7. The net
liabilities in excess OF bonded Indebtedness
is placed at 81 1862, 612, and comprises bills
payable, general creditors, manuscripts, ad-
vertising and unexpired subscriptions, leav-
ing net available assets equal to go per
cent of net available liabilities, exclusive OF
cost of receivership and liquidation.
The committee regards the above estimate
of value of assets, except as a going con-
Germ, to be very excessive. Wherefore, the
committee concludes, If the corporation is
not continued as a going concern, the unse-
cured creditors would receive a very small
percentage of the par value of their claims.
Little, if any, relief is anticipated for
creditors from Endorsements of commercial
paper sold by the corporation and held now
as unsecured claims. The statement is
made by the committee that under the
direction of NJ. Harvey, agent of the
trustee and receiver now in charge OF
the property, operating expenses have been
reduced to 500, 900 per month, equivalent to
a saving of interest on IS, 900, 900. Mr.. Har-
vey has reported to the committee that the
total loss to the business during the first
eight months of the present year was nearly
$500, 900, but that owing to retrenchments
referred to, he is certain that the corpora
tion is now earning its operating expenses
Mr.. Harvey believes that with proper man
agement, free from custody of the courts,
the business can earn in 1900 about 500, 900
above operating expenses.
The committee, therefore, recommends to
the creditors that the business be continued
under strong single-handed control. The
committee has assurances from the holders
of practically all the bonds that with the
concurrence of the unsecured creditors con
t|inuance may be had upon a sound financial
basis. The plan for the final readjustment
of the corporations affairs is now in prep
aration and will be duly submitted to the
creditors.