The Washington times. (Washington [D.C.]) 1901-1902, 1901-08-22
A RATING AGENCY FAILURE
The Mutual Mercantile Company,
of New York, in Straits.

Formed to Rival Dun and Bradstrcct
| No Salaries Paid for More Than a
Monti,-Hnd Strong Men Back of 1t,
But Some Drew Out-Assets Small.
| NEW YORK, Aug. H.-The Mutual Mer-
! camille Agency commercial agency with
sixty-seven branch Offices in the United
| States and Canada, and whose main office
| is in the Mutual Reserve Building at 800
Broadway. is in financial straits. IL. d.
Wiman. Secretary of the corporation. said
today that proceedings had been insti-
tuted which would shortly place them in
the United States bank ruptcy courts. Mr.
Wiman said: The Mutual Mercantile
Agency was organized two years ago
under the laws of the State of New Jer-
sey, at a capitalization of 10000. di-
vided equally in common and preferred
stock. The company spent 1850, coo in get
ting out continuous rating book. 1t
contained 1500,0o0 names and ratings. 1t
had 200 pages. Besides, the company
compiled 100000 special reports from
traders.
1T was a success at first, and IL we
could have made our collections for the
information furnished to our subscribers,
all would have gone we'll AS 1t is we
owe 100000 or more, and a similar amount
is owing us. Here at the main office we
are in debt to the clerks, reporters, and
stenographers.
The enterprise is not hopelessly lost.
We hope for reorganization Every
agency of this character has to undergo
such an experience as this. The older
firms in this business fought us tooth and
nail, and they won"
The company, 1t is represented, owes
less than $780, $50, outside of Indebtedness
to rs directors, and it has outstanding
accounts due it for about the same
amount. Its other assets consist only
of a compilation of a book of capital and
credit ratings of merchants and business
men throughout the country, completed
last January. which, with the type kept
standing. represents, it is declared, an ex-
penditure OF about 81 100000 This COM
pany was formed little over two years
ago, under the leadership of Erastus WI
man.
The attempt to obtain new capital was
given up on Saturdays when President
Magruder sent letters to the managers
of out-of-town agencies, telling them TO
suspend operations. These letters reach
ed their destinations yesterday. Besides
its office here, the company has sixty-six
branch 0tiices in various parts OF the Uni
ted States Last evening, at the close of
work, announcement was made in the Of
fee in this city that there would be moth
ing to do this morning. The clerks and
employees then decided to file legal papers
to protect their salary claims.
ErastuS Wiman, well-known inquire
among the promoters of years just
passed, and one of the founders of this
company, is still an advisory director.
Wiman, it will be remembered, was for
many years practically a partner in the
mercantile agency of r. G. Dun & Co,
until in 1894 he was dropped from the
firm because of discoveries which led to
his indictment, trial, and conviction on
the charge of forgery in the second de-
gree. He cherished the intention, there |
after, when his conviction had been re- |
versed by higher court, of establishing |
a company which should carry on busi- |
ness in rivalry with Dun and with Brad |
street. He became associated in the |
project with Mr.. Magruder, who had |
once been in business in Baltimore, and |
l. Muhleman, Alfred Turner, jr, !
and John II. Flagler. In May, 1ss9 the
was Incorporated.
Wiman got up the first prospectus, and |
1t is said that he was the means of at
tracing a large amount of business in
the beginning. According to President |
the company now has 200
More than 81 .G0o, 900 was spent
in preparing data and publishing the |
book of the company. Franklin Edison,
who was president at first, resigned in
became president, and kept the position
until the first OF April. Mr.. Muhleman
tried it for month, and was succeeded
by the fourth and last President Mr.. |
Ma gruder. An effort will be made to re-
the concern.