The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-07

pride or scranton pe0pIc ave the inter-
national Correspondence School from
the pinch Of financial stringency. or must
the schools try to weather the summer
without help? That IL the vital ques-
bankers OF the Board Of Trade has
struck a snag in Its efforts to raise
$500. 900 to finance the schools over the
dull summer season and effect a reorsan-
ization by an up to date manager.
More than 800. 900 has been advanced
to the schools In the last month In the
expectation that this financing would be
carried through. Developments to-day.
however, Indicate that the plan. as one
banker put II. has been shot all to
pieces and a new plan must be worked
out"
furthermore. J. ]. Jermyn, one OF the
wealthiest men in Scranton, who was
elected n director of the international
Textbook Company last week with fve
other bankers to r%eorganize the schools
has declined emphatically to serve.
The six directors were elected ny t. j.
Foster and his associates in the belief
that the money would be lent to the
schools. but, IL was learned to-day those
men will not qualify until the money IL
landed over. Also, they themselves eN-
| planned, they do not wish to serve unless
the half million Is put up, because their
interest Is in saving the SCHOOLS as an
asset to Scranton. with the backing %
the banking community, and not as any
personal venture.
Method Planned TO Raise Money.
The understanding on which the
$500, 900 was TO be raised was That every
- A. 49,. A.,lfa tn Scranton nrODef
would contribute a share proportionate
to its capital and surplus. Only seven
| OF the ten banks promised to contrib
ute, their total being $3IO.ooo. ana uh-
less the remaining $40. 900 Is raised the
plan cannot go through.
! The nike committee. comprising
Ralph f. Weeks, worthington scranton
and John II. Brooks. held a meeting
! this evening. Afterward II was al
mitted that the remaining $4,000
must be raised to make the plan ef-
fective. There seemed no immediate
prospect of that. Mr.. Scranton said.
The situation. accordingly. seems to
have resolved itself into the question as
to whether the moneyed men OF Scran.
ton. approaching that the schools spend
81, 7OO 900 a year In this city and EN-
ploy many educated people. wish to Keep
the institution running comfortably. l.
]. Foster, whose genius In the corre-
spondence educational work has made
| scranton known in every part or the
! United states and in many foreign coun-
| tries, is convinced that the civic pride
of the people will come to the rescue OF
the schools.
While the bankers seemed confident
a week ago that the money would be
raised without trouble they are not so
sure about that this evening. They fear
the effect of stories printed about the
| outside ventures into which Foster and
his associates. including William l."
Connell, twice Mayor OF scranton. have
poured their money. which came partly
as earnings OF the rr'~spondence
schools. Furthermore. the operating ex-
penses Of the schools have been unusu-
ally high. and the ill success OF the
outside companies and the pupiicity
given them n the dealings in their
securities have made the banks reiuc-
tant to give aid to the schools.
Hanks Prompted by Civic Pride.
II was civic pride hat led the banks
| early in June to consider the opo
! ton Of rendering financial aid to the
international Textbook Company. which
owns the schools. Mr.. Foster had sought
Aid from banks In New York and Phila.
delphia, but had been referred BACK 10
| the scranton banks.
The Board of Trade. which a year
! ago obtained pledges OF $l.ooo,ooo 10
| upbuild or Industries VI
Scranton. took UP Mr.. Fosters plea for
money. Tit American Audit Company
was employee to go over the books OF
the Textbook company and report care
fully on its assets and liabilities Inc
! auditors decided that Il was "A sate pusi-
ness proposition to lend the money 10
the ompany
The accountants figured that the
statement of the assets of the company
made in previous reports, which valued
the electrotype plants at about Sl,soo'-
oOO. was TOO high and that more should
be deducted for depreciation. The same
view was taken as to the Nalue OF the
capital invested in the agency establish
ment, which was put at ABOUT si'ooo'-
900. The value of certain investments
in securities was also pared down by
the auditors. However, there seemed
to the experts plenty OF leeway for a
loan of 100000.
A meeting of the representatives OF
the ten leading banks and trust ON
NAMES in the city was called a week
ago last Friday. The report Of the ac-
countants was submitted TO them and 1t
was explained that 1t was the duty OF
the banks TO back up an institution that
was an asset to Scranton. Tn plan OF
the apportionment OF the loan was sub
mitted in writing, with the request that
IL be submitted TO the directors OF each
bank and a decision obtained.
A week ago last Monday the second
meeting was held, at which seven OF the
ten banks agreed to put up 100000,
one banks share being $4,000. on con-
dition that every other bank
its proportion. Three banks refused,
but il was hoped by the committee that
they eventually would swing into line.
Accordingly the stockholders OF the
school went ahead carrying out their
part OF the plan which the committee of
bankers had asked for.
Demands Made by Bankers.