New-York tribune., 1900-11-15
STRONG & CO.'S CONDITION.
RECEIVER TO ISSUE A STATEMENT SOON
REGARDING FIRMS SOLvENCY.
LIABILITIES PLACED BY PERSONS IN THE
TRADE AT ABOUT a.5OoeOo-OTHERS
MAKE THEM MUCH LARGER-RE-
ORGANIZATION COMMIT
TEE APPOINTED

ORGANIZATION COMMIT
TEE APPOINTED.
Among the drygoods men of the city and in
Wall Street yesterday there was much comment
upon the appointment of a receiver for the firm
of ". L. Strong & Co.. and there were reports
that the firms liabilities would be found to be
large. There rumor that of the down
town banks would be embarrassed Temporarily
by the dissolution OF the firm. but it not
sarder as probable No could say positively
II the firms liabilities would amount to more or
less than 81 100000 or If the assets Of the firm
would equal the liabilities. In the trade
Inmates varied greatly, but good authorities did
not think they would exceed $1,5OoOO0 They
based this on the volume of business the firm
had been doing. which generally supposed
to be $4.OOO,OO0 a year. On the other hand
some OF the bank people estimated the Habili-
ties at between 100000 and 81 100000
EDWARD A Treat, the receiver, said it would
be several days before he could make any
statement as to the sovency of the firm. It will
take the expert accountants now at work the
firms books several days TO get a trial balance
I do not know in what condition the books
now Mr.. Treat added. They may be back
ward. Colonel Strong was ill much of the time
AS soon possible I will issue statement OF
the firms affairs. and 1 am that every
in the drygoods trade in this city joins with
| in hoping that the statement will show that the
FIRMS affairs are in good shape. 1 do not know
how much paper of the firm is outstanding, If
the firm indorsed notes for amounts larger than
the business of the firm would warrant
Mr. Treat gave bond Of $3.50 900 as receiver
and the bond signed by John Clanin. Cor
nelius n. Bliss and A. D. Juilliard, who are
named by Mr Treat as a reorganization COM
mittee to settle the affairs Of w. L. Strong &
Co. Mr.. Treat said the men named would do
everything in their power to settle the firms
affairs in a manner satisfactory to all cred
itors. Asked if he thought the firm of W. L.
Strong & Co. had failed Mr.. Treat replied that
the inability of the firm to meet notes which it
had indorsed. and which coming due. might
be regarded failure.
IMMEDIATE REASON FOR THE ACTION.
Mr. Van Brunt. Of counsel for the estate Of
Mr.. Strong who conferred with Mr.. Treat yes
terday, said the immediate need for the recev-
ership was the inability OF the firm TO meet the
| notes coming due. The firm he added. had In
| dorsed notes for the Stott Wooen Mills. of
which w L. Strong & Co. were the agents-the
! interests of the mills and the firm were inter-
woven. although the two distinct concerns
but it not known how many such notes
outstanding what the amount of those
notes One note which natures to-day is for
! 100000, The death of Mr. Strong followed i'm
/
of the Stott WooHen Mills had made the pay
ment of the notes impossible IT this time
It said last evening by persons who knew
much about the affairs of the two men. that
while Mr.. Strong had ndorsed notes the
amount Of about $500 900 for Mr.. Stott the lat
ter had indorsed notes for Mr. Strong to the
amount OF about 100000. When Mr.. Strong
was ill., Mr. Stott tried to carry the burden alone
but his health failed and he was i'll when Mr.
rT%.
was a fatal shock to Mr.. Stott, who died two
days later
There was report yesterday that Mr.. Strong
! and Mr.. Stott had disagreed recently as to the
liability of the firm of w. L. Strong & Co. for
| the payment of the note for 100000 coming
due to-day 1t reported that Mr.. Strong
had insisted that his firm should not be obliged
TO pay the note. because it was issued for in
/ debtedness Of the Stott Woollen Mills. The
death of Mr.. Strong, it said. came before
/ there was any settlement OF the controversy
over the. note. Mr. Van Rrunt said he had not
heard that there any disagreement between
/ Mr.. Strong and Mr.. Stott.
As to the continuance OF the firms business
pending the settlement Of its affairs by the
! ceiver, Mr.. Van Brunt said that would depend
/ partly upon the mills whose agent the firm had
been If the mills wished to have the receiver
! sell their goods, he added. the receiver might be
]
settlement OF the firms affairs. The first thing
! to do to ascertain the firms assets and la
bties, and then what could be done TO
settle with the creditors. If OF the creditors
began bankruptcy proceedings the settlement of
the claims might be made comparatively easy.
Personal ESTATE LIABLE.
The personal estate OF Mr.. Strong would be
liable. Mr.. Van Brunt said for the liquidation
of debts of the firm Of W. L. Strong & Co. Mrs.
Strong. it said yesterday. the house
No II West Fifty-seventh-st Mt, Van Brunt
received notice yesterday of the discontinuance
Of three suits in Philadelphia in which attach
ments had been fled account of claims
amounting TO 1924 100 The appointment of the
receiver would stop attachments in this city,
+ he said. but there might he foreign attachments
The three suits in Philadelphia had been with
drawn. however, and he had not heard Of any
other foreign suits.
1t was said in Wall Street yesterday that Mr..
Strong and F.. H. Stott had indorsed each
others paper for large amounts. and that the
Death of the had left their affairs in
such shape that the appointment Of a receiver
was necessary. E. c. Holbrook, of Holbrook q
Corey who negotiated much of the paper of W.
l. Strong & Co, said he did not believe any
bank had much of the paper and he did not
think the firms outstanding notes amounted to
81, 100000 The firm had branches in Philadel-
I phia and Boston where they had salesrooms
and carried only samples. 1t said that
receiver would be appointed in those cities.
Mr.. Strong was president Of the Central Ma
tional Bank before he Mayor Of the city,
and he remained director In the bank up 10
the time of his death Among the directors or
the bank are several men who have been proni-
nent in the drygoods business. Edwin Lansdon
the president of the bank. was asked at MS
home in Montclair n j.. last evening II the
hank had much of the paper of the firm OF
/ w. L. Strong & Co, and he replied: NO. anu
do not know OF any bank In the drygoods dis
, trict which carried much paper of the firm. MI
I Strong