Norwich bulletin., 1921-07-27
sHALETT DYEING REcEIvEEsHIP
 FOR THREE MONTHS MORE

4QtSudy morning DeIOTe JuQEe As- | Avery of the superior court. Max Bryer and Sidney H. Miner were namei as ap- praisers.
 Receiver Whites balance sheet showed an operating loss for the six months from January 1 10 July 1, 1921, of $5,- 935.s7. The total assets were shown al | $7S,466.e4
 Attorney Arthur T. Keefe, counsel fer the receiver, opened the hearing by a statement of the appointment of Mir. White as temporary receiver by Judge Gardiner Green. of Norwich On July and explained the situation of the nusi- ness at present. He said that MT. Shs.eff is owner of all the stock of the corpoT- ation except three shares. Tho main ner of Montauk avenue and Bank street and the concern has branches ia Nor wich, Westerly. and Mystic. when are in the nature of receiving stations.
 Attorney Keefe stated that there is Sl5,o0o outstanding in capital 'tock and unsecured notes payable of approximate ly S30o0e. He said that the concern purchased building in Montauk avenue | several months ago, for whicii 1t nssd | $Se,o0o on which there were mortgages | of about $25,o00 held by the Savings Bank of New London andN Charles Sstti. from whom the building was purchased.
 Book Assets Are s7s.lso94.
 At MT. Keefes suggestion Receiver White was called to the stand and ex- | plained the condition of the business un- der his operation and told of the anan- cial condition of the company as he had found it. Mir. White read from . bal ance sheet which showed the current as
 sets on June 30, 1921. as follows: Cash in bank, S4.s2; cash on hand, s30; ac- | counts eceivable, S2,3s112; finished work l hand S1 0SS 6S
 calls. dyestuffs. supplies. etc, $500 :; de- ferred assets, insurance paid ii advance.
 $500; claims against railroad company
 for losses, SITS; fixed assets, buildings.
 s9SS65.24; machinery and equipment,
 S2o151.6s furniture and fixtures, S3.-
 57s27; automobiles. s2.5o4s7; other as-
 sets. H. NJ. shalett, personal account
 debit s2.5224e, good will. book figures S6,3s0 Total assets 7s,4e6.y4
 Mir Whites statement showed liabi1i-
 ties as follows: Notes payable S3015ss2
 accounts payable. s9,917.69 mortgage cn
 buildings, $22,500; taxes payable on the levies of 1919 and 1920, s1.624 61 accrued
 payrolls, S73S.o4; accrued iutercs- cn mortgages, s1,095.S4; total current lia- bilities and mortgages. reserve for de-
 preciation of buildings, machinery, etc.
 S3,633.S0 capital stock outstanding. S15.- | OOo; surplus account, balance debit or
 January 1, 1921, s2s5.ss and loss IoI period, S5,935,97; ; making total liabili- ties and capital, S7S.4s694
 The witness testified that the building. are subject to first, second and third
 mortgages and that the mach nery an4 equipment are subject to csa'tel mort
 gages of s7,50o to secure payment oi S5,S06. The notes payable tncIule bar ance of notes payable for $tsoa secured : by third mertga age for $3. .o0S on buildings . Receiver White gave testimony to show ; that operating expenses from July 1 tt
 today were SN,476.S0, taxes $eA, interes
 on mortgages SIS. and insurance SI5
 showing profit estimated at SIP.
 Mir. White was en the stand all tho , morning and was questioned at 1ariou ' periods during the hearing by Attorney H. A. Hull. C. H. Hull, Ar.nur B. Cal kins, Max Boyer. Morris Lubohansk! and Thomas F. Dorsey representing vari : ous creditors.
 . The witness declared that the weaehe during the first three weeks of Jul. :: while he was in charge ot the bushes ! : was bad. The principal item of expensl l he said, is the payroll.
 2 Costs $500 Weekly t1 Operate. y The witness said that he ssiimated n eI expense for operating t'e busness y about $500 week Ar- skaiett has ha a charge of the actual operation of tn h business since the 1eceI7e":i,:p at ga ,l ary of $75 week whicl was tne >Sslar V MT. Sha1ett had drawn rec the incol I poration. There are Is ha1ds in The en
 ploy of the company and the estimate
 payroll is approximately s3O5 a week. IT V the help is paid in most instances b,
 payroll is not definite inasmuch 3 T the day.
 Receiver White said that hs knew IT. no mortgages held by Attotneys Mario T. R. Davis and Arthur T. Kesfe and th5 'n there were none to his knowiedge, a sd examination of the books hayE Eg revealc s no such mortgages
 IT The witness testified thlt al the a 't' sets. including building, machinery, flu se niture, fixtures. etc, were given in h ss statement at the purchase prices. I td said that the Troy Laundry Machine
 held a mortgage on machinery of si ed 900 on which S1,700 had been paid ar at that Landers Frary and Clark held he chattel mortgage on machinery of S5' ed on which $50 had been paid. The machi he cry was purchased in 1920, but paymen re had elapsed on several months. Recen he ly an agreement had been made to pa
 S2o0 a month on the bill of the Tro
 Laundry Go.
 Unsecured Debts S2s,s5s.s2. ss MT. White said that the total incun .t brances amounted to S33,00o on whit
  nd SS,633.35 had been made for deprec se ation on machinery and furniture. I he testified that he had arrived at the va ,s uation of the building on the purcha at price of s3o.oe0 and expenditures f sn alterations of about ss.00o.
 no The company's unsecured indebtedne re the witness placed at S2s.35S.S2 and | mn merchandise claims at Ss.91s.6o. of Mir White said that in 1920, the co
 cern did a business amounting to S4- be 600 and that during the first six mont
 of this year the business amounted
 S15,G00. He was of the opinion that [
 concern can be operated for $500 a we
 and possibly s400 with economics. ] " said that whether the company could - operated at a profit depended almost e IU II tirely on the business done. He a D. D. mitted that at present business is at l' /" ebb but he thought that it would pi ns up soon and that it couldn't be ar t worse.
 to MT. White estimated that if the co nu cern had broken about even since CT took held The witness said that h. had made no attempt to place val K ation on the property at costs for 19 ge and that he considered that that wou en be the duty of appraisers:
 The witness said that from what
 could learn Mir. Shalett did not dr;
 any weekly amounts but that he dr' fo money in lump sums. The examinati |
 of the books showed that MT. Shalett h maid some of the bills from his priva o account and some from the company's pS count and that some of his private bi lu had been paid on corporation checks o u then charged to his personal accoul ,s Inquiry About Notes.
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