The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-05-10
REHABILITATION
OF BANKING N FIRMS.
John L. Williams & Sons and
w. ]. Middendorf g. Co. Out
OF Hands Of Committee.
PAID OUT OVER 100000
Financial Chronicle Gives His
tory Of Concerns and Causes
Of Trouble.
PAID OUT OVER 100000

The Financial Chronicle, In referring to
the rehabilitation Of the firms of John L.
Williams and Sons, Of Richmond, and
W.3J. Middendorf and Company, Of Bal
tmore, says:
1t will be recalled that when, on Octo.
Der 1, 1903, the announcement came thnt
John l.. Williams and Sons and j. VIII
liam Middendorf and Company had found
it necessary to ask temporary indulgence
of their creditors, universal regret was
felt over tho occurrence. The standing
of the two concerns in the community
was so high, they had done SO much to-
wards the upbuilding Of the South, the
enterprises in which their funds were tied
UP wero of such Importance. that the
hope was universal that they might be
able to cxtricate themselves from their
difficulties. The fact that they had be-
come embarrassed did not reflect IN the
slightest degree upon their good judgment
or the stability or profitable character
of the enterprises in which they had en-;
gagged. The truth Is, conditions We're
exceptional and peculiar. Security values
on the stock exchanges had been steadily
declining all through 1903 and confidence
in the future Of even the best Of invest
ment properties seemed to be almost COM
pletely gone. 1t does not require very
active Imagination to realize in what
position this left these Southern banking
concerns, remembering that the proper
ties with which they had become iden-
tilted were in the main new and had not
yet had chance to demonstrate their
earning capacity. Then, too, the aggre-
gate of their commitments was necessar-5
lily large. 1t was a wise thought that
suggested the appointment of COM
mittee of men Of eminent financial stand
Ing to take temporary charge IN the In
terest OF the creditors of the firms and
Of the firms themselves. This committee
at the time consisted of Douglas H.
Thomas president OF Merchants National
Bank Douglas II. Gordon. president IN
ternational Trust Company Of Maryland;
Robert c. Davidson. then president OF
Baltimore Trust and Guarantee Com
pany; John B. Ramsay, president OF the
National Mechanics Rank Of Baltimore,
and Eugene lowering president Of Ma
tional Bank of Commerce, and Eppa$ Hun
ton, Jr., Of Richmond, and Frank O.
Briggs, Of Trenton.
This committee, shortly after it's APP.
pointment issued n circular stating that
the assets Of both firms largely exceeded
the liabilities, and suggested that the
time for the payment OF the respective
debts be extended for a period of seven
months, from October !, 1903. This ar.
rangement was assented to with great
8unaninity and with noteworthy prompt
ness hardly week having elapsed from
the date of the appearance OF the circu-
lar, ard the fconclu sionSsof the arrange
ment. u1nbounded% confidence was felt
in the probity and sound Judgment Of
Nressrs. Williams end SONS and hidden
dorf and Company, and an earnest ef-i
fort was manifested on all sides to pro-
tect and promote the Hinterests involved
and to guard against sacrificing or sinjur-
ing the same. The two concerns were
prominently connected, as is known, with
the eaboard Air Line property, but they
were also interested in many other enter
prises. The liabilities were in the neigh
borhood of s12,0o0o0O. A further extern
sion for a year, from May !. 1901 was
subsequently granted In the. meantime
progress in the liquidation OF the indebt-t
edness Of the two houses was steady and
uninterrupted, Messrs. Williams and Sons
and Middendorf and Company being un-,
remitting In their efforts to promote the
settlement and pay off outstanding ooll-
cations.
committee occurred on Monday of this
week Before disbandng, the committee
submitted statement showing what had
been accomplished, and paid n deserved
tribute to the skill and energy Of the
members Of the two firms. 1t was pointed
out that the firms have paid to their
various creditors $s,373. 900, exclusive OF
certain contingent liabilities not en-
braced in the original statement which
have been settled in full. The remaining
Indebtedness. It is stated,;is due to COM
paratvely few creditors, with whom the
firms are making satisfactory settle
ments in full, and hence the functions
Of the advisory committee are at an end
The statement concludes with these
v,rptxr a
the ability and energy Of the firms,
| which have been devoted to the interests
! Of their creditors In the face OF difficult
| ties which at times seemed insurmount-
| able. Their EN- Embarrassment and the sue
| cessful outcome have emphasized their
| integrity, ability and energy, qualities
| which we believe will In the near future
| rc-establish them among the factors IN
| tho development Of the commercial and
Industrial interests Of the South"
Every word in tho foregoing Is war
| rantcd. and the discharge of the advis-
DRY committee marks the happy ending
| of what at one time seemed likely to-
prove very serious affair, According
to the Baltimore "Sun,'tsa syndicate
headed by the Baltimore Trust and Guar
antee Company has raised a fund OF
$4,000 to take care Of the remaining
Indebtedness Of these firms. 81 This agree
ment, 1t Is stated, was made on April
25th, and the collateral deposited Is
| thought to have an excellent chance OF
future appreciation in value. Hence It
was determined to pay all the creditors
assume the loans, and hold them for
| contemplated profit. The securities taken
over by this new syndicate are said TO
show a margin OF at least 30 points over
the present market yalue8of the same
We believe that the whole financial COM
munty will rejoice that these two South
ern banking concerns have emerged from
I their difficulties and find themselves once
| more firmly ON their feet, i