The Indianapolis journal., 1899-11-29
State Trust Company, ns Trustee of
the First Mortgage, i'm Possession
of the Publishing Plant.
G. M. B. HARVEY MADE AGENT
AND TO HAVE COMPLETE MANAGE.
MENT OF THE PROPERTY.
Finances to lie Thoroughly Read
justed and the Magazine and Week.
lies Improved i'm Every Way.

NEW YORK, Nov. 2S.-The State Trust
Company, as trustee of the first mortgage
of Harper & Bros, issued to-day the fol-
lowing notice:
"Ar persons will please take notice that
the State Trust Company, as trustee under
the first mortgage made by the corporation
of Harper & Bros. to the State Trust Com
pany, as trustee, in pursuance of the provi-
sions of Section 2 OF Article 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 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, and that from this date and
until further notice neither the corporation
of Harper e. Brothers nor its agents or SER
wants will have or will exercise any power
to use, operate, manage or control said
property or premises or TO conduct the
business thereof. The State Trust Com
pany has appointed Mr.. G.. b. M. Harvey to
be its agent in the possession, operation.
management and control of the said prop
erty, premises and business, and until fur
ther notice he will be respected accord
ingly''
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 Nov. 81 1885, John W., ]. Henry,
James Thorne, Henry S., III. r. and James
Harper, the members of the firm, wrote to
j. Pierpont Morgan & Co, saying: 1T is
due to you, as the principal creditors of
Harper & Bros, to know that owing to the
financial stringency and the fact that the
bulk Of our assets Is not available for quick
realization or collateral purposes, the COM
pany may and probably will be unable to
meet it's maturing obligations. Moreover,
our new president MIR. Harvey, insists that
the finances of the company must be re-
adjusted in such a 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 We
consider II our duty. therefore, in justice
to both 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. bet
ter adapted. in our judgment, to conserve
the interests of all our creditors.
THE present assets of the company have
been justly estimated as being far in eX-
cess of its existing liabilities, but they are
or such character as to be wholly un-
available for immediate cash requirements
or as a basis for further loans. We are sat-
isfied, however, that with capable single
headed management, which We believe we
have now secured, the property may be
maue capable of earning a material amount
in excess of that required to pay the inter-
est not only upon your prior lien, but also
upon the unsecured claims, amounting to
approximately S2000,0OO. 1t is our anxious
desire to protect, If possible, the holders
Nf nln eara1 th1Vs. In. a0nf
ton which will assure ultimate payment in
full.
"A reorganization of the company upon
permanent and substantial basis would:
we believe, accomplish these purposes and
would conserve the interests of all credi-
tors. provided the property could continue
under the sole direction of Mr.. Harvey.
who has already effected reforms which
will result in saving of more than $loo.-
QUO per year. We, therefore, recognize
that you should proceed to take all nec-
essary steps to protect your claim Sc
cured by the collateral of our mortgage
tee under the mortgage, upon your re-
quest, would be entitled to enter upon and
in ,4at case we shall initiate proceedings
for tn appointment of the trustee as re-
ceiver of the corporation, ana of Mr.. Har-
vey as agent for the receiver hoping that
q reorganization may be effected which
shall promote primarily the interests Of
our creditors, and which, we hope, will
also preserve the honor and dignity of the
house of Harper & Brothers, and enable
IL to enter upon a fresh career of useful
ness and prosperity.
Replying the same day, j. Pierpont Nor
gan a Co says: "The downfall of the
house of Harper & Bros. would be a nation
al calamity. Everything that can be done
lawfully to prevent ii should be done. Un-
der the circumstances we think your plan
will prove in the end to have been the best
for all creditors. and it will receive our
hearty cooperation"
President Harvey. of Harper & Bros, to-
dav made statement, saying in part:
1.-THE action of the State Trust Company
was taken primarily at my instance. with
the full consent and approval of members
of the Harper family and of the principal
creditors The simple fact Is that / or
anybody else who ventured to assume the
personal responsibility Of the management
of the company without first effectng a
thorough readjustment of its finances
would have been confronted by a hercu-
lean, IL not an impossible task. Every
publication issued from the Harpers
presses will now be strengthened in every
possible way without hindrance, and I
trust. with the hearty cooperation 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 j. Pier
pont Morgan's mortgage is So. 500 900. making
the firms total liabilities $5,500,0O0, the cred
itors for 81 900, 600 being unsecured.