The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1910-11-11

house, including poultry pickers, where
as now it has about sixty employees
there. The company has of late been
curtailing its business, because for sew
eral months it has been running at a
loss. Mr.. Macbeth states that the COM
pany lost $4,000 during September, and
less amount in October. The company
started in business ten years ago next
| March, and has transacted a large
business.
| The cause of the company's present
embarrassment is said to be prinic-
pally due to doing business on too
much borrowed money. Paying inter-
est on 100000 borrowed money was
too great drain.
! Stock Is Scarce.
Mr.. Macbeth lays the company's
| financial trouble to the fact that stock
/ is scarce and high and collections poor.
He says that the company has enough
accounts outstanding on it's books
which, if collected, would pay the en-
tire Indebtedness, dollar for dollar. He
is in hopes that the creditors will be
paid in full. He says that the out.
standing accounts are mostly on the
range. All OF the liabilities of the
company are unsecured and most of
them represent money borrowed.
1t is not expected that the company
trouble will result in the closing down
of the packing plant or of the local
retail markets, but the outside houses
will undoubtedly be closed as rapidly
as possible. The receiver will operate
the plant and try to pay the debts off
He will probably sell the packing
plant, and undoubtedly company will
be formed to take over the business
or some individual buyer will be found.
There will be good opportunity Of
Tered for getting the plant at price
at which it ought to become paying
investment. 1t would be very regret
table if it could not be continued in
operation, for it gives steady employ
ment to many heads of families and
affords market for stock, thus bring
/ ing business to the city.
Agreeable to Company.
[ The present proceedings are entirely
agreeable to the company, and it was
at its request, it is said, that the Pc
tition was filed. 1t could not go into
voluntary bankruptcy, if it wanted TO-
| Finding that they were steadily run
ming at a loss, the members of the
company wished to protect the credi-
! f,,r L.,
affairs. Both members are experienced
| business men, who have reached the
meridian of life, and it is regrettable
that misfortune should overtake them
| when the outlook seemed bright. They
have numerous friends who will hope
that they will get upon their feet again
soon.
Statement From Mr.. Gardner.
Referring to their financial embarrass-
ment, T j. Gardner, the junior mem.
Der of the firm, said:
| "The reason of our assignment has
been high prices and poor collections
The past year has been disastrous
one for the beef and pork industry
Livestock of all kinds have been
higher than for forty years and it re-
quired two to three times the capital
| which it formerly took.
"We are told that the amount OF
eggs in storage is greater than ever
also stock of butter in storage is about
100000 pounds more than year
| ago and still prospects are for higher
prices in the near future. And who is
| to blame for this condition of affairs
| The ma Orty OF people will claim the
He has it in his power to raise or re.
ducc the price at his will, surely the
trust has no power over the mind OF
| man. As an example fancy bacon is
retailing in Chicago today for forty
cents per pound, which is way beyond
reason; people do not have to eat it
"We today are living in the age OF
air bubbles. The automobile has gotten
| too slow for us and we now have tC
resort to airships and balloons fol
these inflated ideas. The only remedy
| known to man is to cut down the
buying power by giving less credit.
"Whcn the merchants all over the
country realize that business must be
done nearer cash basis we will Their
have lower prices. for the reason the
| buyer will buy less knowing he car
! not get credit. The majority of people
are living away beyond their means
owing to the credit system and the
| sooner they realize the situation the
better it will be for all concerned
Only last week in Newport. a fashionable
city in the east where millionaires live
several merchants were found to close
their stores because they could not collect
their outstanding accounts from these
supposed millionaires and others.
! "You very seldom hear of a producer
failing-why because he gets cash fol
everything he sells why should the mer
chant not demand the same privilege
ask the garbage collector who should
have credit, he knowns-domestit
science taught in all schools will save
| the consumers millions of dollars d
year."
| Some time ago The Free Press men-
toned the purchase by Charles j
Macbeth of 1000 acre ranch near
| Daszell, S. d., of c. X. Howard. Mr..
Macbeth turned in the Security flats
building in this city for the land at
| $4,000. The Security block is described
as lot |, block 81, city. The deal has
cnly just been closed up, but it has