New-York tribune., 1901-08-22
WIMAN'S COMPANY FAILS
THE MUTUAL MERCANTILE AGENCY
THROWN INTO BANKRUPTCY
PLANS TO REORGANIzE.

Dill & Baldwin lawyers. filed yesterday In the
United States District Court behalf of three of
the creditors of the Mutual Mercantile Agency.
petition to have the agency declared invelun-
tary bankrupt This action followed the closing of
the offices of the agency in this city by order of
directors on Tuesday. The claims Of the creditors
on whose behalf the petition filed amount to
about $500 The whole indebtedness of the agency.
1t Is said will reach nearly s0OOO OF which about
$4,000 is due to the directors of the agency for
money advanced to pay expenses an equal amount
10 employees for wages and the balance trades
men for supplies furnished and banks for money
loaned
The Mutual Mercantile Agency was organized in
may 1893. under the laws of New-Jersey, with a
capital stock of 100000 divided into 81 oooOsO Z
per cent preferred stock and S1oO0Oo common stock
me common stock was used to purchase trade
agencies IN various parts OF the country. about
halr dozen being bought, and the preferred stock
was SOLD to get working capital More than 300 600
was realized from the sale of the preferred stock
All that money was used to establish the busi-
ness Sixty-seven offices. including the in this
city were opened and for nearly years the
work of compiling a trade reference book and
rating n. rchants and other business men and com
panles in this country, Canada and Mexico was
under way. About the first OF this year the agency
began TO solicit subscribers. The officers say that
they got four thousand names their books.
In the mean time. however. they had used up
their working capital, and the payments OF SUBJ
scripuons did not in fast enough to pay ex-
penses The agency had to borrow money and
run blils Their pay day the first of each
month August ! they were unable pay their
CLERKS tor the work done in July. They had sixty
CLERKS In this city and about Ave hundred in other
Siues: S The clerks continued to work without pay
~ tb ast SATURDAY Robert Magruder the president
~ e agency sent letters to the managers their
Various offices telling them to close last Monday
.I me clerks IN this city also told that the
o@Lces @ mere would close that day but the clerks
tP eActPt TWO according 10 Mr.. Magruder, agreed to
continue TO work, and wait for their pay ON
4uesudy II was decided TO close, anyway, and the
morning. A ~ ~
Mr. Baldwin. OF Dill & Baldwin. who besides
rtIpt tne creditors In the petition for bank
up'cy are the counsel for the directors says that
the asency's trouble is not due to msmapagement
Dut 70 lack OF capital The agency's property In
boston, Montreal, New Haven Hartford Charles
town. W. Va; Omaha Atlanta and this city has
Deen attached by small creditors Mr Baldwin
says tnat when these attachments began TO be
which would have ttded them over their trouble
put that the filing Of the attachments prevented
me , lSah 6el1g made meeting of the creditors
WI oe called Tor next week, and plan of
Kanlzatlon viii ne presented To them II is be-
heNed that the agency will be reorEanized and will
continue in business II there Is no organization
the creditors. Mr.. Baldwin saws will get next M
nothing. on the other hand, he saws It's tables
ana data are worth every cent OF the more than
MT Magruder says that plan of reorganization
Will be presented 10 the creditors and ne expects
jt NJ pan: 81 Iaf as
u mas neen outlined is to give the creditors stock
IN the company for their claims and to raise more
capital ny issuing bonds
Erastus Wman was the principal promoter Of
'he company. Mr.. Wiman was formerly connected
with the mercantile agency Of r. q Dun & Co
lie was convicted Of forgery in connection with his
higher courts He then became associated with
Robert Magruder, Franklin Edison. Ross NJ Turner
Maurice l. Muhleman. Alfred Turner. tr, nd John
r Flagler in an effort 10 rival the business OF r.
@. Dun & Co.