The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-05-06
PUZZLE TO RECEIVERS
Promoter Now in Europe
and Actual Assets Are Not
Yet Computed.
SMALL FRY TOOK STOCK
Wall Street Interests Not Inn
pressed With Huge East
Coast Fisheries.

When the East Coast Fisheries Com
pany was Incorporated in Maine in
May, 1917, with capital stock Of s10,-
600 900, the outlook of the cod, had
dock and halibut OF the Newfoundland
banks was not bright. When the East
Coast Fisheries Products Company was
Incorporated in the same State, little
more than two years later, with capital
stock of $50. 900 900, the outlook grew
worse.
Ivan NJ. Taylor president OF both
companies, of the firm of l. NJ. Taylor
& Co.. Inc, of Wall street, who is
now In Europe, permitted 1t to be-
come generally known that the East
Coast Fisheries Company was going
10 catch the fish and the East Coast
Fisheries Products Company was go
ing to make food, glycerine, oil, gela-
tine, glue, fertilizers, leather and phos-
phorous out of them.
At the present time. however, the
fish in the Atlantic Ocean are not
worrying much about the plans Of the
two companies, for the trawlers of the
fisheries company are tied up and the
plant Of the products company is not
making many useful things out of the
fish of the fisheries company.
The plan was good one. 1t is gem
orally admitted, but unfortunately-for
a good many people--the fisheries COM
pany did. not conflne itself to selling fish
and the products company did not con-
fine itself to selling products. Instead,
they both, mostly through ]. VI Taylor
Co, sold stock, about si5.O00,00o par
value OF stock.
small Investors Sought.
1t must not be thought, however That
the companies actually got SIS, 900, 900 I
in cash I. NJ. Taylor & Co. was allowed
Is per cent commission the pre-
ferred stock and on the common stock
did even better The stock sold readily. /
possibly because the companies were
apparently huge successes from the first |
The companies were paying dividends
six months before they went into re-
ownership In November last.
At the present time Cadwalader.
wfckersham & Taft attorneys for the
receivers, one of whom Is Gen. George
Ws' Goethals, builder of the Panama
Canal. are suing Mr.. Taylor. as presi-
dent. and other gentlemen. as directors,
for s395,SS6.50. which. it is alleged. was
Illegally distributed to stockholder as
dividends. The dividends" II Is as
serted were paid out Of the capital Of
the companies.
TIE enthusiasm OF /. NJ Taylor who
sailed for Europe last month, is the
outstanding feature OF the history OF
both companies. Mr.. Taylors organiza-
ton in New York and elsewhere made
1t possible TO sell the stock, and It was
-. - al
prospectuses and the words Of his sales |
men, that made II possible TO sell the
stock to many small investors all over /
the country Judging from the distribu- /
ton Of the companies securities. they /,
did not appeal 10 the big men in Wall
street as good investments at any rate. /
much of the stock was sold 10 peop.e
with $500 or 5000 TO invest.
vnIne Of Assets I'm Doubt.
50 enthusiastic concerning the future
OF the projects was Mr. Taylor appar
entity that Gen. Goethals and his asso- |
ciate receiver, Harry Mighels Verrill, re-
ported 10 the Maine court that !. NJ.
Taylor & Co. traded the following prop
erty to the Fisheries Company for All
the common stock Of that company. Of
the par value of 100000;
Contract with Cox & stevens, naval
construction OF vessels.
Contract with Capt. Peter Tobin for
services in commanding and managing
trawlers"
Contract with the Portland shin
building Company for the construction
of trawers and the purchase Of equip
ment therefor.
AN option FOR the purchase Of the
business OF the Rog srs Fish Company
Of North Lubec. Maine
These contracts were carried on the
books Of the COMPANY az an asset under
the heading. Property and Property
Rights-s5 010. 600" In connection with
his ana the sale OF most or tho s5.C00O0o
preferred stock Of this company BY ]. ".
Taylor a Co, Inc. Gen. Goethals and
Mr. Verrill report TO the court.
THE receivers and their general coun-
sci are studying all import ant transact
lions and relationships oil this company
ard the East Coast Fisheries Products
Company. including those with / NJ
Taylor q Co. Inc
The biggest item IS the assets column
Of the fisheries company Is fifteen steel
steam trawlers, six wooden steam trawl
ers and one wooden schooner. These
vessels and equipment arc worth
s5.D3,9I30. according to the books az
the fisheries company, but concerning
them and other assets the report to the
Maine United States District Court
states:
The receivers do not here express
their opinion as 70 tho actual value OF
said assets"
Total assets for this companv are
given as SSl7.5si7S, while liabilities are
put AZ s2.722.2so Liabilities. Of couree.
dc not include the value of the common
or preferred Of the company Among The
Items IN tho liability column IS accrued
salary to !, N. Tay0r. sl6250. and dps
1 NJ. Taylor X Co, Inc. agent
sS6s.SS4.o2. This company aeo owes ii. 4
French Republic SS25 200 for ten mine
sweepers which i converted into traw-
lers.
How the stock was Handled.
One OF the interesting pieces IL hr,sl-
ness trsnsacted By the Products Com
pany ano l. NJ. Taylor & Co. Inc. Is
described as follows BY the receivers
Under date OF September 10. 1919 the
Products Company entered into an
agreement with |. W. Taylor K co
providing N brief, that T. NJ Taylor
e Co he appointed solo fiscal agents
for the sale Of stock OF the company
and that practically all Of the common
stock, 2.fil,aN shares or par value 81
so. be st aside IA favor or NJ TAYLOR