Evening journal., 1903-07-22
BIG PLANT WILL
NOT BE CLOSED
Creditors of Harlan and HOIIin6s-
worth Company Decide to Adopt
a Course of Action Mapped
Out by Attorneys for Re
ceiver and Company

the eleventh day Of August, nineteen hum
drod and three. or az any time prior
thereto. upon FIVE days notice from the
lessor; this lease covering the yards
docks and plant formerly OF the Harlan
and liollingsworth Company. together
with all the tools, machinery and personal
property Ia and about the same. Tlre
rent TO be paid 10 the United States Ship
building Company. as provided by this
lease was the net profits made by the
Harlan and ilollingsworth Company IN It's
business.
The Harlan and Holingsworth Com
pany took possession under this lease.
and continued TO operate the plant until
July sixteenth, nineteen hundred and
three, at which date the said lease had
Terminated under the notice provided
therein, and James Smith. Jr.. took pos
session as Ancillary Receiver I'm the Dis
trict Of Delaware for the United States
Shpbuilding Company.
The entire assets. which were held by
the Harlan and IIollngsworth Company
az the termination OF this lease. have been
claimed by the Ancillary Receiver of the
United States shipbundlng Company. asI
the property Of such company. The Har-
Ian and Hollingsworth Company claims
that these assets are only the property Of
the United states shipbulding Company
after the payment of all OF the creditors
OF the Harlan and Holingsworth Com
pany. The determination of the varlous
questions which necessarily arise out OF
I these conflicting claims, can only be Sc
cured by tedious ana expensive nuratlon
in court OF equity. This litigation would
necessarily involve not only the settie-
mcnt OF the conflicting claims Of the two
companies, but also tho conflicting claims
of the creditors Of each, and IN addition
Thereto, the claims Of persons who have
work IN course OF construction at the
Harlan and Holllngsworth plant. which
is incomplete and upon which payments
! have been made on account.
In the opinion Of counsel. both OF the
harlIn and Hollngsworih Company and
Of the Ancillary Receiver of the United
= States shipbuiding Company. it would be
impossible TO determine this litigation In
) less than years time, and without the
closing Of said plant.
Would Close Plant.
II either a receiver. or a trustee IN
bankruptcy should be appointed for the
Harlan and Hollingsworth Company, at
the Instance or as the result. OF action by
any creditor. it would at once be neces-
sary for both the Ancnlary Receiver Of
the United States Shipbuilding Company
and the receiver or trustee IN bankruptcy
of the Harlan and Hollingsworth Com
pany to Immediately assert their conflict
lng claims, In which case necessarily the
matter would be thrown into the courts
and the plant would have to be shut
\ down, and its value sacrificed Under
either a recoivership. or bankruptcy pro
ceedings against the Harlan and Hollings-
worth Company, owing TO the various
questions involved, IL would be at least
a year before there could be a distribution
of the remnant of assets Of said company
among its creditors. IL Is evident that the
mere closing Of the plant of the Harlan
and Hollingsworth Company will lari ely
destroy the value of the assets available
for the payment Of debts.
{ Course Of Action.
b Approaching this situation, the Ancn-
larry Receiver Of the United States Shin
! building Company, and the Harlan and
j Holhngsworth Company propose the fol-
lowing plan and course Of action, pro-
vided it shall meet with the approval Of
] the creditors of the Harlan and Hol-
} lingsworlh Company.
= With the consent of the Harlan nnt
Hollingsworth Company and its creditors
the Ancillary Receivers of the United
States shipbuildlng Company Tor the Dis
irict Of Delaware will apply TO the United
States Court for the District of Delaware
for an order authorizing him, as such
. Ancillary Receiver TO retain possession
of, Use and dispose Of the assets lately in
control Of the Harlan and Hollingsworit
81 Company including all Of the material
and supplies now at the plant, work IN
course Of construction, cash, accounts and
y bills receivable due, or growing due, ant
nj Continued on Third Page)