The daily morning journal and courier., 1906-03-16
RECEIVER APPOINTED
 FOR HOWE & STETSON
APPLICATION MADE TO SU- PERIOR COURT AS RESULT
 OF ATTA CHMENT.

Lieutenant Governor Woodruff Named by the Court - Oyer-C Capitalization Makes Company Unable to Meet Ma turing ObligatiOns--Business to be Continued by Receiver With EIbridge Howe in Charge of Merchandise End Company to be Re-organized-Rc- ceivership Does Not Affect Private Home Banking Company--All De- positors to be Paid in Full With In- terest--Receivership to be Temporary MT. Howe States.
 Following an attachment placed on the firm by New York creditor yes- terday afternoon the Howe & Stetson company applied to the superior court for the appointment of a receivership, which the court granted, Col. Rollin S. Woodruff being appointed receiver un- der bonds of $5O,OOO. The company has found itself unable to meet it's matur-
  ened with attachments for son1e time, the first one being that served yester- day. In order to preserve the interests of the business it was decided to ask for q temporary receivership.
 The. .receivership is a purely temporal ny affair to allow the reorganization of the business in the same manner that it has been conducted. MT. Elbridge J.. Howe will manage the store under the receiver; all the company's em- playes will be retained and there will be no suspension of business at all.
 The companys difficulties have been occasioned by over capitalization. The large increase in business tor the past few years has given rise to a policy of rapid expansion of the capacity of the company to do business. The building of the store in Pitkin street, the large basement and the taking over of the Howarth building and the Moses build ing for the extension of the stores op- erationS have all come in rapid success sion. The capacity of the company to do business has been more than dou- hled in the past year or two. All this has tied up the capital of the concern and involved it in its financial troubles The receiver has been authriozed by the court to pay all the wages of the employees of the concern in full, so that not one of them will suffer any loss through the receivership.
 Attorney William M. Morgan, of the Fremont building, Boston, and the firm of White, Daggett & Tilson, ok this city represent the interests of the firm. The process of reorganization will be taken up at once, and it is hoped to place the business in a f1uorishing condition again in short time
 The Howe banking system inaugura- ted by MT. Elbridge L. Howe, is not af- fected at all by the receivership. This has always been separate from the de- partment store business of the compa- my, and is not included in its affairs. MT. Howe has decided, however, to H. ouidate the affairs of the bank. All depositors will receive their deposits with interest in full, beginning with to- day. There need be no hurry on the part of depositors, as the funds of the bank are adequate to pay all obliga- tions. The following circular, stating 
 clearly the situation of the bank, was sent out to all depositors by MT. Howe last evening:
 '"The temporary embarrassment of the Howe & Stetson company will not delay the payment of depositors with Elbridge L. Howe, private banker.
 All will be paid in full, with interest, upon presentation of pass book at my banking office.
 ELBRIDGE l.. HOWE,
 Private Banker"
 The object of applying for a receiver ship was simply to preserve the busi- ness. The company has been threat ened with other attachments besides that placed yesterday afternoon. The creditors of the concern are New York firms, but their names could not be learned.
 In connection with his statement con- cerning the reeeivership MT. Howe stated that not only had the capacity Inf inc store been more than doubled during the past year, but that the sales had likewise been more than twice 4, c 4l,o ,,ravi0lIs year.