The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-11-29
Firm of Harper &
Bros. is Practically
Insolvent.
PROPERTY MORTGAGED.
President G. B. NJ. Harvey
Has Plans to Build
Up Business.

| New York Nov 2S.-The State Trust
Co., as trustee of the first mortgage OF
Harper & Bros, issued today the fol-
lowing notice;
"AlI 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 Co. as trustee, in
pursuance of the provisions of section
two of article three of said mortgage
| has entered into and upon all and ev-
! cry part of the property and premises,
| lands 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 Harpers Round Iaple,
and that until further notice, neither
the CORPORATION of Harder & Bros, nor
| its agents or servants, Will nave or VIII
exercise any power to use, operate,
manage or control said mortgaged
property or premises, or to conduct the
| business thereof.
s'The State Trust Co. has appointed
! Mr.. G. Is. M Harvey to be its agent
| in the possession, operation, manage
| ment and control of the said proper
ty premises and business; and until
| further notice he will be respected ac-
| cordingly."
This action on the part of the trust
| comnanv was taken by request of the
members of the Harpers' corporation
which on November 9th sent letter
| to Messrs. ]. P. Morgan 81 Co, IN
which they in part said: ut Is due to
YOU. as the principal creditors of Har-
| per & Bros, to know that, owing 10
| the financial stringency and the fact
| that the bulk Of our assets is not avail
| able for quick realization or collateral
| purposes, the company may and prob
| ABLY will be unable to meet its matur-
| ing obligations, Moreover, our new
| president Mr.. Harvey, insists that the
| finances of the company must be read
| iusted Ia such a way as to enable MIN
! to give his undivided attention to the
! business and editorial work.
1--WE consider it our duty, therefore,
| TO decline to avail ourselves of your
| generous offer to increase the amount
! Of your loan, and to seek your cooper
| alton in another way, better adapted
| in our Judgment to conserve the inter-
| est of all our creditors.
| "a reorganization of the company up,
on a permanent and substantial basis
/
creditors. provided the property could
continue under the sole direction of Mr..
| Harvey, who has already effected re-
/ forms which will result in a saving
of more than 100000 per year"
! J. P. Morgan & Co., in reply to the
! foregoing wrote:
"The downfall of the house of Harper
& Bros. would be national calamity.
| EVERYTHING that can be done lawfully
to prevent it should be done. Under
| the circumstances, we think your plans
| will prove in the end to have been the
best for all your creditors, and it will
receive our hearty cooperation"
In further explanation of this action,
| George B. M. Harvey, who was elected
president of Harper & Bros, a week
i ago, made the following statement:
| 1.-THE action taken by the trustees
| was taken primarily at my instance,
with the full consent and approval of
! the members of the Harper family and
of the principal creditors. After thor
| ough investigation of the condition of
| affairs, became satisfied that, in order
| to maintain the proud position Harper
| & Bros. have always occupied in the
| publishing world, and to carry on and
| enlarge it's business in conformity with
| modern ideas, 1t was absolutely essen
| tial, first of all, to establish It's finances
! upon a sound and durable basis An
staggering under so heavy a burden Of
indebtedness would have been, from a
business standpoint, little short Of in
sanity In these deliberations, the at
titude of every member of the Harper
family has been characterized by the
keenest sense of personal honor and the
highest regard for the good name of
| the greatest publishing house in the
world.
"The net result of the action taken
is to make it possible for me and all
associated with me to devote our entire
energies to the actual work before us,
instead of giving half of our time, at
least to financial problems, with pos
sibility that the very best endeavors
would only result in ultimate failure
Every publication issued from the Har-
per presses will now be strengthened
in every possible way without hind
rance, and, trust, with the hearty CO.
| operation of thousands of friends of
the great house"