New-York tribune., 1903-07-23
NORCROSS co. IN TROUBLE
RECEITERS APPOINTED.
Estimated at S5O0,0O0
Operations to Continue.
TBY TELEGRAPH TO THE TRIBUNE. ]

or the First National Bank of Worcester, and
Frank B. Smith, a Worcester attorney. were
appointed receivers this afternoon for the Nor
cross Brothers Company the big contracting
and building firm, by Judge Brown, in the
United States Circuit Court. Their bonds are
fixed at 100000. The appointments made
on petition of Manchester & Hudson, of Provi-
dence, and the Wells & Newton Co., of New
York, who acted for themselves and other
creditors.
The petitioners bill recites that Norcross
Brothers hold outstanding contracts for $1,000
000 and have expended S3.000OO0 in fulfilling
them.
1t declares that they are unable to complete
their contracts and proceed with the business
under the present management. Manchester &
Hudson's claim is for $4,000, and the Wells &
Newton Company claims $7559 1t is also al
legged that the Norcross Brothers Company owes
other creditors about $500,OOO on merchandise
and negotiable paper. 1t is further alleged that
the concern is unable to meet its obligations
they mature, and sought the appointment Of
receivers to conserve the property and assets
for the benefit of all the creditors and to prevent
waste by litigation from individual concerns 1t
is also alleged that receivers could conduct the
business in such way to better protect the
interests of all concerned
The counsel for the plaintiffs and the banking
institutions who assented TO the decree was
George S. Taft; of Worcester. while T. H. Gage,
of that place. appearing for the company, also
assented to it. The creditor banks consentins
to the decree are the City National Bank, the
Quinsgamond National Bank and the First
National Bank, the Worcester Safe Deposit and
Trust Company, the Peoples Savings Bank. the
Worcester County Institution for Savings, and
the Worcester Five Cents Savings Bank all Of
Worcester
The defendant concern is a Massachusetts
corporation and has several plants at Worcester
and elsewhere throughout the United States. 1t
has conducted some of the largest building
operations in this city and elsewhere.
Mr.. Norcross is at present at his main office in
Worcester, and his manager. FreeIon Morris,
Of the Boston office, had gone away for the
day. None of the clerks in the office were able
to give any information in explanation of the
reasons for the appointment of a receiver to
take charge of the affairs of the corporation.
Indeed their first knowledge of the existence of
the receiver was brought by reporter who
called to find out the reasons for the appoint
ment.
The Norcross Brothers Company, of Worces-
ter, Mass, was incorporated January /, 1907.
1t consists OF Otis w. NorCrOss president; AL
bert j. Park, treasurer and William j. Den
nolm' Inc capltal stock is SLoOO,OOO In luu
shares, at $4,000 a share. The business of the
company is general building, quarrying struct
ural manufacturing, and keeping of building
materials. Companies controlled by the Nor
cross company, such as the New-England
Structural Company several quarries and slate
companies etc. will not be affected it is said
complete list of contracts outstanding is uii-
obtainable tonight, but among the large Bos-
ton contracts are the ten story building of the
State Life Assurance Company of Worcester,
Congress-st.; Journal" Building. eleven stories,
practically completed; Pennsylvania Mutual
Building, Mk-st.; two steel buildings, Charles
town Navy Yard, and metropolitan sewer sec
tions at Milton Mass.
The concerns difficulties are attributed to
tight money and labor troubles 1t is said to-
night that operations will not be interrupted.
The treasurer of the NorCross Brothers Com
pany stated to a Tribune correspondent tonight
that the final outcome of the receivership would
be entirely satisfactory to all creditors. To-
days action, he said, was friendly one on the
part Of the creditors concerned, and was
brought about after consultation with the
treasurer. Owing to the recent labor troubles,
most of them only indirectly connected with
the Norcross companyS operations, ana the
stringency in the money market, which had tied
up some of its large contracts, from which the
company would realize payments as work went
on. the company had found itself temporarily
embarrassed. One such instance had occurred
on the New-YOrk Public Library building,
which the company had under construction,
when marble worth $4,000 was tied up
by the teamsters' strike within three miles OF
the building.
The New-York representative of Norcross
Brothers is Thomas O'Reilly, who is member
of the Building Trades Employers Association.
He lives at No. Mount Morris Park West.
When a reporter called there last evening II
was said that he was at his country home
Leading members of the Employers AssOcia-
tion We're of the opinion that the shutdown OF
building in this city had absolutely nothing to
do with the failure. a member of the Board of
Governors said:
More than nine-tenths of the contracts of
NorcroSs Brothers are in cities outside of New
York It's largest contract here is the New
York Public Library and it has had no labor
trouble whatever here. The firm undertakes
the largest kind of contracts, and is one or
the best known and most extensive in its Oper-
ations of any firm of builders in this country. NO
one who knows the firm believes that the pres
ent trouble is anything more than temporary
embarrassment brought about by the extended
nature of its contracts. / feel quite certain that
the firm will come out all right"
j. Leland Wells, president of the Wells q
Newton Co, one of the firms whose appll-
cation the receivers were named. last night said
there little to be added to the statements
made in the formal application. There was no
doubt that the labor troubles were at the bot
tom of the difficulties the firm, but that there
absolutely cause for apprehension. All
creditors would receive dollar for dollar.
In addition to the New-York Public Library.
the Norcross firm built Columbia University
buildings, the Horace Mann School, Teachers
College and other buildings.
TAKE ACTION AT COMPANY'S REQUEST.
BY TELEGRAPH TO TIE TRIBUNEl
Providence, r. L, July 22.-At the office Of Man