New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-03-23

a
undersigned have consented to act a reorganiza-
pan Of the no s has
maze sed an @ OF the aai+f or the
stantial correctness of the statements furnished
tude Of it's business methods anu u '''
assets consisting instalment contracts accounts
receivable. merchandise hand and a valuable
Contracts ETC. we'll as the valuable soodwiiI Of
is manifest that advantageous results depend en-
p py apS S the res of the assets in their
the business
The appointment by the Court Of j. Hampden
dIo ,g who is especially competent for the
dnt5K the assets for the benefit of all
berment e "''"O'' p''O'''S preference OF os"e'h-
w shah promptly prepare plan of reorgan!za-
PENDING the preparation Of the plan creditors are
at No IA Nassau-st. statement of their respective
MIR. PRITCHARDS APPLICATION.
At the office of the Appletcns no information
at all could be had. but Mr. Prltchard's appIca-
ton for the receivership is full of details. One
of the reasons which Mr.. Pritchard based the
application for receiver was that all the Off
GERS and directors of the corporation had
signed, so that the corporation was without any
officers or directors empowered to hold or pro-
tect the assets. The business was incorporated
on February ~. 1897, Mr. Pritchard's applca-
ton further said. with a capital stock OF
S2oUnOOo and succeeded to the business of the
firm of D. Appleton & Co. William w. Appleton
was president. Colonel Daniel Appleton and Ed
ward d. Appleton ce-presidents, and Daniel
S. Appleton secretary and treasurer. Besides
these, there directors Charles A. Apple
ton and Robert Appleton. 1t added that
ever since the failure Of Harper & Brothers the
attention of the trade and creditors had been
directed to d. Appleton & Co, 1t known
in banking circles that the latter concern a
large borrower of money its notes. and the
situation such that holders of its paper
We're adverse to renewing the notes when they
became due. II is also stated in the papers sub
mitted that the corporation is unable to pay its
notes and other obligations they mature that
they are falling due in very large amounts that
its assets and property are widely distributed
throughout the various States. that large sums
of money from time to time falling due to it
upon instalment contracts for books sold, cOllec-
tions on which are ordinarily made al its agen-
cies; that the directors have all resigned, that
there is danger that the assets In various States
Will be seized by attachments under execu-
tons upon judgments, to the great and irrep-
arabic damage and loss to creditors and stock
holders; that the assets, instead of being equi-
tably distributed among the creditors. will be
sacrificed. and creditors whose claims
due or falling due will not only obtain unjust
preference, but will also greatly injure the in
protect themselves under existing laws; that the
assets are of such nature that if the business
is to be sold so as to realize the full value of the
assets it should be sold going concern.
OBLIGED TO BORROW ON NOTES.
In consequence of the great extent Of the in
stament business of the corporation, and the
capital stock being locked up in assets not read
lily convertible into money. and because of the
heavy outlay of money to carry on the business,
the corpora ton has been obliged to borrow large
of money on its notes some of which are
due and others about to mature for
large amount and because of the slowness OF
collections from instalment contracts and the
difficulty of obtaining ready money to meet the
notes the corpora ton is unable to meet them.
A statement of the business for the year 1899
shows total sales Of 81 SIS, 10. of which there
were instalment contract sales Of S1031116;
wholesale sales of S129, 1S9; retail and mail,
1410. The fnstalment contracts run from six
/ to thirty-six months. the average being sixteen
to eighteen months complete set Of books is
delivered to purchasers on first payment on the
| instalment contract.
The liabilities are 81 100 600, of which S9CO,0O0
| is represented by notes of the corporation, of
which $4,000 fall due during the rest of the
month of March. $500 600 in April and S2SO,OO0
in May. There is owing for merchandise Sl3,322;
ROYALTIES to authors, $4,000 commissions 10
canvassers 5000; to contributors, $4,000;
money borrowed and salaries, $1,000.
The value Of the assets is not given in the
papers presented to the Court but it stated
that II carefully administered enough might be
realized to pay the creditors in full Among the
items Of assets mentioned cash on hand and
in banks 81 900; money due on nstalment con-
tracts accounts and bills receivable SlI10OO.
Other assets from which the corporation will
realize money will produce more than SlO0.-
Z he vail Of 10
stock of books hand. plates. etc. is not given.
David II. Moore, the chief bookkeeper, in a
statement to the Court said that the corpora
tons financial condition had become suspected
! by banks financial institutions and lenders Of
capital so that 1t was impossible for it to renew
/ loans or borrow money for necessary working
4 capital or secure credit for the conduct of the
/ business.
The corporation has branches in Philadelphia
Washington Atlanta, Pittsburg Cincinnati, Chi
cago, Kansas City, Denver San Francisco Gal
weston and Boston.
EXPANDED TOO MUCH FOR ITS CAPITAL.
Alfred Jaretski, Of the firm Of Sullivan &
! Cromwell said:
The failure was owing. entirety to the fact that
the COMPANY began to increase its business too
rapidly and it Borrowed money from banks on
W SaGT l faiy h 5000 il found that Would
be able 70 meet The SEQ oo worth OF n0tes " T
would fall due within the next three months l. ne
banks had become more cautious than usual OWNS
% the recent necessity FOR reorganizao1 Oh ce
best 10 let one of stockholders Daniel Prtch-
ard make tsndy apPeaAGn tor head gf The
arm; Colonel Daniel Appleton. d. sydney Appleton
and other members Oh me ore cnndent that
within few weeks a complete reorganizati0n VII