New-York tribune., 1909-03-23
CORNELL co. BANKRUPT
RECEIVERS APPOINTED.
Structural Steel Contractors Short
of Outlook Good.

An involuntary petition in bankruptcy was hieo
81 the United States District Court yes'etdaS
morning against the }. Z. & J. NJ CoTneA OOii-
psnv. one Of the Oldest and best known Of the
structural iron and steel manufacturers and con
tractors f. this city The petition was fled IN De
half of the Bethlehem Steel Company and other
creditors IN sums aggresating S4505V' hlc-l@e-
Blake an i:ou manufacturer, Of No l4s Broad
way and a Gordon Murray. Of No 60 wall
street. we're appointed receivers, under bohd q
seo0.0o1
The pejitioning creditors say that the company
has an unsecured indebtedness Of SJsvv ana IN
completed contracts aggregating upward OF S4'V''
CO., and also has bonds exceeding $4,000 outs;aho-
ing which are secured by mortgage on the en-
tire plant OF the company. Many reasons are
given for the ernbarras sssnent Of the conp2nytlle
high price Of steel - the last three years W.
years night against the labor unions, and several
years litigation the courts TO collect for WORK
done among them.
This failure is considered the most important OF
tne' kind that has occurred since the period OF
business depression set in, but did not come as
eoraplete surprise 10 familiar with the trade
sbout ten DAYS ago 3 meeting OF the principal
creditors Of the company was held. al Whlch II
was found that the company could not meet us
liabilities committee. consisting Of Barrie Jones
OF the Bethlehem Steel Company; G {. Carson OF
the Phoenix Iron Company; Il. p Howell Of the
Carnegie Steel Company; c. Mem Cooley o. t'e
Thomas Iron Company, and Nj Blake vas
formed 10 investigate the company and to take
resulted tthe request for receivers 1t Is thought
the receivership viii be for only short time.
When seen last night Mr.. Blake asked i
the discussion by Congress OF the tariff question
had anything 10 do with the conlpanys embarrass-
rnent He said he did think So He said he
attributed The condition Of the firm TO an invest
rnent Of about million dollars in its plant a.
Cold Spring Hudson. leaving II short OF cash,
and 10 losses sustained recent fire at the plant
Mr Blake expressed the opinion that in TWO
and the creditors taken care Of He did not care
TO say whether the Cornell family would remain
IN control.
According TO Mr. Blake the company has now
on its hands N.5eleno worth Of gt-edge contracts,
and these viii be carried Il nothing had
happened one OF these contracts. he said, in
volvinE half-million dollars, was in connection
with the Erie Canal. while another for Sl90@sJ had
10 do with the Pennsylvania tunnel. These. con
tracts Mr.. Blake said, should show q handsome
profit. in view Of the recent fall IN the price OF
steel
Nr. Murray. the other receiver. said there were
about five hundred the plant at Cold Spring
who had been paid IN the last week He said
that steps would Immediately be taken TO raise
money 10 pay these men Mr.. Murray attributed
the failure 60 fire the plant and also 70 the
litigation which the company has carried on with
W +. ID. Stokes for the last six years over con
il tracts According Mr. Murray. il IS the inten
tion 20 reorganize the firm and continue it The
creditors Of the wish have the business car
ried and expressed THIS feeling N a petition,
which was giren yesterday by Mr. Murray.
J. NJ Cornell. the head OF the firm. when seen
yesterday his Office. made the following state
uent-
The action taken by our creditors in APPLYING for
receivers for the J. u & J b Cornell Company
Is friendly one. and intended he temporary
pending a reorganization OF the company for the
easier carrying Of the business and the eXeCu-
tion OF large number Of contracts the company
has hand
+'Our firm he said was established in 1877 by
my father J b. Cornell. and his brother. ". "
Cornell Those were pretty good days in the steel
business. but the first in the field by
any means"
The officers Of the firm are: John u. Cornell,
presi6ent Irwin H. Cornell. secretary; Herbert T.
Blake. treasurer Ths directors are John Il Cor
hell Irwin Il. Cornell. Milton L Cornell, s W
BOVINE. John 5. Huyier Charles r. Leffngweu and
William Y. Shaw
Among the important contracts the company has
had the steel work the Hotel AstoT and that
on TIE large apartment house built by the Astor
estate in Broadway between 18th and 18th streets.