The Providence news. (Providence [R.I.]) 1891-1906, 1902-10-01
SALT TRUST
Order Filed Yesterday OecIar-
Ing Il InsoIVent.

Trenton, N. j., Oct 1st.--An order sign
ed by Chancellor Magee was filed In the
court OF chancery yesterday declaring the
National Salt company insolvent and ap-
pointing as receivers Nathan s. Beard
slee of Warsaw, NY and Frank p. Nc
Dermott Of Jersey City. The application
OF receiver was made by Chauncey II.
Strickland OF New York city. who holds
2so shares OF preferred stock.
The chancellor's order was based on
affidavits made by Mr.. Strickland. Frank
p. slade OF westheld. chairman of the
executive committee of the National Salt
company, and ]. Dobson Good, president
of the Good Audit company. Mr.. Goods
examination Of the company's books COW
cred the period from Jan. !. to June 80,
1902.
On the latter date, Mr. Goods affidavit
says. the current obligations Of the COM
pany, including those becoming due with
In 80 days, amounted to u150,lS6 and the
total quick assets TO ssss.4ls. showing q
deficit OF s2sl. .7lS. During the six months
covered by the affidavit, Mr.. Good says,
the company's loss In Its business was
sl14.7l4.
BIG LOSS ON CONTRACTS.
He also examined contracts with the
Michigan Salt company and others. by
which the National Salt company was
bound 70 buy upward OF 1000. 600 barrels a
year at prices the affidavit says. so much
over the market that the National com
pany lost on them more than s2e6,0oo.
These contracts would run to March /,
1903 The affidavit says that the company
has on hand more than million barrels
OF salt and can find no market for 1t at
reasonable rates.
The deponent also finds certificates OF
indebtedness outstanding on account OF
the purchase of the stock OF the United
Gait company OF Ohio, amounting TO $685.
b64, though this liability Is disputed by the
National Salt company.
The harges made t0Fthe bill Of COM
plant are all substantially verified by
the affidavit of Frank y. Slade OF the
executive committee. IL 10 recited in the
bill that the National Salt company was
Incorporated In March, 1899. with an au-
thoriyed capital stock of t2 eeo. 600. divided
into S.ooo,ooo preferred stock and S7.o .ooo. go
common.
Salt company OF Ohio became competitors
IN business, and as consequence un
agreement was made TO combine the busi-
ness. whereby the United company stock
holders agreed to exchange their stock
for that of the National company on the
basis of one snare of stock Of the United
company In exchange for one arA a quar-
ter shares of the common and one and
quarter shares OF the preferred stock
of the National company and a cash bonus
of s10o.25 represented by certain certifi-
Gates of Indebtedness.
TRUST ILLEGAL.
The United companys stockholders de-
posted with the American Trust company
of Cleveland ssss, 400 Of stock. 10 be deliv-
cred by the National company when the
latter had performed certain covenants
and bad paid Si.s6S,tSs In cash to the
Stockholders Of the United company In
ten equal semi-annuai instailrnents.
Default was made In the installment
due July !. 1901 and under the agree
ment the whole amount then unpaid be-
came due and payable. II Il charged Mat
the agreement and trust certificates are
illegal and void. as being In restraint OF
trade and In violation OF all statutes of
Ohio.
The bill shows that the following juds-
ments against the company on the stock
certificates have been obtained in New
York state: George s. 1ngraham. us-
ls2; william II. Ingraham. 81, sci: Ameri-
can Exchange National bank. s7s.eOs A
judgment for tssa0es on overdue no.es
was obtained IN the New York Supreme
court by Milo M. Beloing. Jr., who has
just served summons In another suit
for $4,000.
The company owns rninss OF plants IN
New York st Lndlowviile wsr~aw, Wat
kns. Ithaca, Pavilion and Pearl Greek.
and In Michigan AZ Marine City, wyen-
dotte and Saginaw.
IL is declared that a receiver. being
free from the Improbable contracts. car
mine salt I'm such a way as 20 nay Ali
running expenses and leave a handsome
surplus for the creditors and stockhold-
ers.
An outing Of the Neishborhood Repub-
licane Of the seventh ward. s5 In num-
Der. had an outing at Hauterive yester-