The Birmingham age-herald., 1903-05-21
FRUIT CONCERN GOES ID PIECES Firm of Porter Bros. in Hands
 of Receiver A BLOW TO CALIFORNIA Handles a Great Part of the Fruit Crop of That State and Was Forced
 to the Wall at a Very
 Bad Time.
A BLOW TO CALIFORNIA

San Francisco, May 20.-The commer- cial community here was startled today by the information received from Chi cago that the Porter Brothers company, which handles a great part of the fruit crop of the state, had been placed in the hands of 8 receiver. This unexpected ac- , ton was taken by the United States Dis- trict court for the northern district or Illinois, and according to the news given out in this city was forced by the de- mands of bankers on the firm at a time when d good part of its funds are in the hands of fruit growers. The receiver ap- pointed Is Henry L. Wilson of Chicago, and in a te1egraphic communication to Thomas P. Lynch and Charles B. Bills, local agents of the company, he has designated them as temporary receivers in this city to act as his representatives until the affairs of the corporation are strengthened out.
 The Porter Brothers company Is one of the largest houses in the country dealing with growers of fresh fruit and the pro- ducers of dry products of orchards and vineyards. It has branches In New York, Boston, Chicago, Minneapolis, St. Paul and San Francisco, and agencies In all fruit-producing sections of the country, no less than fifty being located In Cali fornia All of the various managers and agents have been telegraphed to by Re- ceiver Wilson to conduct the business In his name for the present, as he assumed its full management
 Liabilities Not Known.
 The amount of the company's liabilities Is not known here but 1t is assumed by those fin a position to make an estimate that they may run Into the millions. In his message to the San Francisco managers Receiver Wilson stated that the assets would exceed the liabilities and that the embarrassment of the firm would only be temporary
 At the local office of Porter Brothers it was announced that immediate pay ment of several heavy notes preclpitated the failure.
 "It is probable" said MT. Bills, the To- cal manager, that the banks pressed their claims without giving the Chicago office sufficient notice. In other words. the Chicago office was caught short. No doubt the company has sufficient money to pay all it's creditors. but lacked time in which to get it together
 Another statement Is that the appoint ment of receiver was the outcome of a suit in the United States Circuit court. One estimate places the possible liablli- ties at $3,0O0,Oe0
 Bankruptcy Proceedings.
 Chicago, May 2O.-Bankruptcy proceed ings against the Porter Brothers com pany, one of the largest fruit commission houses in the country were begun sec- retly in the United States District court yesterday and today it became known that receivers had taken charge of the company's affairs. John McLaren, former vice-president of the Union National bank and Henry l.. Wilson, a lawyer, were directed by Judge Kohlsaat to take charge of the assets of the corporation. This was done on application of several creditors, who alleged that the concern was in- solvent and that It's officers had made preferential payments. Until the return of James Watson, president of the Por- ter corporation, the receivers do not eX- pect to find out much about the financial condition of the company. President Wat son Is expected to arrive fin Chicago to- morrow Attorneys Defreze and Ritter. who represent the Porters said they could not estimate the liabilities or assets of the concern. It Is said to be probable. however that the debts will prove to be larger than the assets which are worth from S100. 600 to SzU0000
 The corporation was capitalized for $1,- 000, GOO and had a high financial rating
 The petition in the local court was filed by Leonard B. Weed Benjamin F. Smith and Thomas F. Beaven, whose claims az gregate $50O0