The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-05-14

matters we're 90 deeply involved that In
order to save the firms narne and avert
a bankruptcy and the dissipation Of the
business II would he necessary for the
shareholders to put M A considerable
sum even in addition to whatever equi-
ties were found to exist In the real es-
tate to be transferred by Mr.. Evans.
The ~latter's ventures have been extern
sive. and In some quarters the opinion
prevails that the money taken out Of the
business and devoted TO real estate
speculation has been one Of the chief
sources OF the present d~ifhculties.
That statements Of condition have
been supplied by the firm to commercial
paper brokers and innocently by them to
the banks which purchased the paper
which do not square with the condi-
ions as disclosed by the certified ac-
countants, as was reported on Friday. IL
not denied. This feature 10 by far the
most disagreeable matter as yet en-
countered In the AFFAIRS OF the concern.
The difficulty In all likelihood could have
been avoided or AT least not reached the
magnitude now indicated II bankers had
insisted upon an independent audit by
certified accountants instead Of acS6ot-
ing the unverifed and state
mcnts Of conditions that were supplied.
Psints 60 similar Cases.
One banker called attention to the
large number OF somewhat similar cases
that have developed In the dry goods
trade in the last dozen or twenty years
and particularly so In connection with
the difficulties that befell l.. s. Jahray &
20. and the II. r. Claim Company.
Neither concern would consent to an in
dependent audit Of It's books or make a
sworn statement Of its anairs. A. in
ia. -aea 80 Nf11a = Chin shav rAlfc9
wholly upon the high credit established
for their business by the original
founders. Difficulties beset both the
concerns In time and the subsequent dis
closures a been very unpleasant
chapters In the commercial annals OF
this city.
The papers IN the receivcrshir suit
were formally filed In the United States
District Court yesterday morning. They
disclose the fact that the creditors were
pressing the concern and threatening 70
bring suits which would have resulted
IN forced sales and the consequent diss.-
patton OF the assets. For this reason
the friendly proceeding was deemed ad-
vsablc. as IL stays all other actions.
Henry W Chapman Of Scarsdale. y.
V. the plaintiff IN the suit. holds a
claim OF S5.o9l for money lent. He
AYERS hat the company has not enough
money on hand to meet It's current debts
and has little chance Of raising sum.
cient funds TO meet the obligations about
to mature. The floating Indebtedness OF
the company. he says, is in excess Of
$1,000. 600. part Of which is now due.
In addition Ia this. he says. the Arm
owes large suin for merchandise.
According to the plaintiff. the Arm has
on hand a large stock which II will be
III to sell at a proht II the business Is
continued without interruption. There
fore, he says. the company as a going
concern has a better chance Of meeting
i:s obligations. Resides the stock on
hand. Mr.. Chapman says. the assets in
clude the building at oss Fourth ave-
nue., fixtures IN the building. cash on
hand and accounts receivable.
The court n petit!oned to ALLOW the
receivers to borrow money from time 20
time IN order to run the business. Al
such a time as the court shall deem just
n proper h prcperties are to be sold
IN whole or in part.