The Brattleboro reformer. (Brattleboro, Vt.) 1907-1912, 1908-02-14

under consideration by q committee o
the directors and stockholders, and Al
audit and examination Of the hooks oi
the company IL being made by Price
waieThease and company, public nc
eoaatants, As soon as tho reports oi
the committee and u the accountant
cad b. obtained, a summary will be-
sent 10 the creditors aud stockholders
Tho officers ~ the company believe
that the duration Of the feeeiyefshif
will be temporary. Auxiliary receivers
have been appointed In the various
Jurisdictions in which the properties Of
the company are located
The bushes Of the National Novelty
corporation, Of which the \. A, Smith
company became u branch July !, 1908,
at a valuation Of $4,000, was taken
over by the Hardware and Wooden
ware Manufacturing company Oct. 81,
1907, Before this conversion could
be- made II was necessary TO pay over
$4,000 In mortgages on the various
plants and 10 call In every bond Of an
issue Of sl,s50,OOo made by the Ma.
tional Novelty corporation, The
change naturally required the use Of u
large amount Of money that was need
ed TO meet merchandise accounts so
that the company was short OF working
capital The new company was capt
tailed for s3.750,O00 divided as fol,
lowsi si.s50.00o : per cent first pre-
ferrcd stock; sl.s50.0O0 per cent see.
ond preferred stock; si,.5O.000 com.
mon stock. The first preferred stock
took the place Of the bonds In the old
concern. and holders OF first pre-
ferrcd stock In the old corporation,
a number OF whom are Brattleboro PEG.
pie. were issued an equal amount Of
second preferred stock in the new con
ecrn, The change was obviously for
the benefit Of these stockholders for
the reason that doing away with the
bonds freed the company from any
cncumbrance.
Had il not been for the financial eri. |
sis that came on about the time the
change was completed there would
have been probably no difficulty. A
representative of the new company had
closed a contract with n French syndi.
cate for ss50,0O0 of the first preferred
stock, and the balance was practically |
all subscribed when the panic fell.
This not only interfered seriously with
the sale of the preferred stock but il
brought about contraction OF credit
which made il imperative for the com.
pany to meet the calls Of many banks
which held its commercial paper. In
spite of these obstacles the change was
In a fair way Of success until the I'm.
ion Trust company of Providence went
into a receivers hands. This bank
held 100000 of the corporation S pa.
per, and the inability of the corpora.
ion to pay this indebtedness at once
was the final event leading TO the re.
The Hardware and Woodenware
company is composed of the following
branches: II. Bliss Manufacturing
Pawtucket, II. L.; >. A.
smith company, Brattleboro; Noble &
cooley, Granville, Mass; j. 4 +. Stew
ms company, Cromwell, Conn; Grey
ron Casting company, Mt. JOY, Pa;
Mason & Parker and the A. .. Speare
ompany, Winchendon, Mass; MANS,
ee Novelty company, Manistee, Mich; !
Whitney Reed Chair company, Leon. c
nster, Mass; American Rattan Works,
It. Louis, Mo-; wilkins Toy company {
Ieene, n. H.; Logan 4 Strobridge d
ron company and Wrightsville Hard 7
gare company, Wrightsville, Pa; Gong t
Iell Manufacturing company, Watrons j
manufacturing company and n. n. v
ill Brass company East Hampton, c
onn.; Jones & Bixler Manufacturing t
ompany, Freemansburg, Pa; +. w. o
randall company, Elkland, Pa; Ken o
On Hardware Manufacturing company, t
.enton, o. p