Norwich bulletin., 1912-05-01

made deduction for bad debts, etc, of $1,1S2, ,239.S5.
 It is further stated that the repre- sentatives of Gum, Richards & Co, visited the various plants and offices ! of the company and personally super vised the taking of inventories of raw materials finished, partly finished goods, etc. and the pricing of various items, which show an aggregate value of $66S, ,577.s5. This is the figure, it | is explained, that they expect the in ! ventories will realize in the conduct of 1 business as going concern. after eliminating all obsolete material or ! taking it at scrap value.
 i The various plants. real estate, | buildings, machinery, equipment and | investments of the company were ap | praised the figures being based on the 1 company, equity in these properties, after making due allowance for mort gages and encumbrances thereon. l This valuation included the sum of | S1S2,0 ,048.49 for patterns and drawings | and $25, ,6S350 for office furniture and i fixtures.
 The report states that the statement 1 of liabilities includes all the known i obligations of the company, as dis ! closed by an examination of it's rec | ords. but does not take into account | contingent liabilities of $53, ,653.15, the | greater part, If not all, of which it is i believed the estimate should not be required to pay Disputed claims az i gregating s61S,6S6 are not taken into | account. They consist of a claim of | George c. Schmitz on an alleged con- l tract for royalty on portable vacuum | cleaners for $73,6S6, and a claim of l one Machette for S540,000 based on a l contract with one Haffey. which con- ! tract, it is alleged was assumed or | guaranteed by the McCrum- Howell | company. These claims, the receivers said in their opinion should be vigor-
 ously contested. In conclusion the l receivers say that the statement of liabilities and assets does not take into account any patents. patent right, | licenses under patents, trademarks or good will, in respect to the value of which they venture no opinion, but
 in acquiring which the company has. no doubt expended large sums either in cash or shares of stock
 The receivers declare that they are informed that title to a great many patents is vested in the company; that they have definite knowledge of others under which the company is licensed i in consideration of the payment at stated intervals of substantial amounts 1 as royalties. the most important of which appears to be the Kenney pat
 ent. relating to vacuum cleaners. This patent is owned by the Vacuum Cleaner company of New York, a corporation in which the McCrum-
 Howell company has no interest, and ! an exclusive license hereunder was
 granted the McCrum Howell company
 in consideration of the payment as a
 minimum royalty of 50,000 per an num-
 The receivers aver that they con
 tinued negotiations, which were under
 way at the time of their arrangement
 with the Vacuum Cleaner company by
 which the minimum royalty will, un- der certain conditions, be reduced to S25,000 per annun, until a decision is i rendered by the court sustaining the
 validity of the patent.
 The receivers aver that the value oi
 these patents, etc, would be detri-
 mentally affected until the business
 of the company be preserved and en- kergetically prosecuted. For these req
 sons the receivers recommended thai
 authority be given and arrangements
 be made towards providing such ad-
 ditoinal funds as may be required tt
 run the business. In conclusion, the
 report states that the accountants
 have not completed their investiga
 tons and that this report is subiec
 to such notifications and additions a!
 further examinations may suggest.
 The report of the receivers caused
 another slump in the stock whicl
 touched 9 and l respectively for tn, preferred and common.