New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-09-13
TOO MANY RECEIVERS.
Shinkage in Corporation Business
alarms Nesc-Jersey authorities.

Trenton y j. Sept p (SpeciaD.-New-Jersey's
corporation business is shrinking at pace that
alarms the State authorities and the falling OH Is
believed to be the result Of the placing in the
hands OF receivers OF so many companies organized
under the laws of the State. Since the first of the
year forty-four companies have gone into re-
ceivers' hands.
The authorized capital of these fOrty-four cor
porations aggregates $s0S4oOOo. Their liabilities
s7.2723 81 and their assets are estimated al
81 eS4 25 But there is little doubt that this Is
estimation. because land and personal
property. I'm some instances, are entered among Ie
assets at a valuation ridiculously large
For instance the White Mountain Paper COM
pany, capitalized at s15,OoG,o0o has habihties
amounting to S1l,9iiOco. and its assets are re-
ported as not known. The truth is that the only
assets of the company are 5000 Of book accounts
and the material hand the value of which is not
stated in the schedule.
In the case of the Purity Ice Company, capital
lied for 100000 there are liabilities amounting to
SS1Sl7Ss. The assets in this company are repre-
sented in the schedule as $4,000 being the value or
an ice-making machine. But it has developed that
the machine is rot paid for, therefore 1t belongs
among the liabilities.
The capital stock of the Coahuila and PACING
Railroad Company is sl.5co,ooo. Its Liabilities are
s2,ss1Oco. Its assets not known, but are pre-
sumed to be franchises purchased, or bargalned
for. for the building Of a railroad between the
towns Of Sotillo and Torreon. Mexico.
In most where corporations have been
placed in the hands of receivers this action has
been taken by the court upon application of stock
holders who have become fearful Of losing the
money they have invested in the enterprises. 1t is
safe 10 say that I'm a large majority of the cases
the stockholders will not get 10 per cent on the
dollar Of their investment.
In the table given below mention is made
Of the United States Shipbuilding Company for
which a receiver was appointed by Judge Kirk
patrick OF the United States District Court, few
weeks ago This company organized under
the laws of New-Jersey with capitalization OF
s45OOOOe. What are its assets and liabilities hasn't
yet been determined. but it is believed by the re-
ceiver that investors viii get all that is due them
The run corporations became so menacing
during the part of 1902 that their friends put
their heads together and had law enacted by
the Legislature which calculated to prevent
stockholders from forcing corporations into court.
This law provided that stockholder In a COM
pany could not inspect the books of the corpora
ton unless by permission of the resident agent.
and that suit could be brought i'm the name of
the corporation unless with the approval of 70 per
cent OF ali stockholders. These provisions made
IL rather difficult kicking stakeholder to get
his cause before the court. Unless he can obtain
the support Of - per cent all of the stockhold
ers lac must bring the suit in his own name and
pay the cost OF litigation.
Following is a table showing the authorized cap
ital of the forty-four companies that have been
placed the hands of receivers since the first of
the present year, also their liabilities and assets,
where the assets are known: