Shepherdstown register. [volume] (Shepherdstown, Va. [W. Va.]) 1849-1955, 1922-07-20
RECEIVERS FOR HALLTOWN PA
PER BOARD COMPANY.

.
fered by the paper board industry in
the last part of 1920, and during the
entire year OF 1921, the Halitown
Paper Board Company, whose large
mill has operated at Halltown, this
county, for more than fifty years,
forced 10 apply for receivers to the
/ Circuit Court of Jefferson county in
Charles Town last Monday in the in
terest of the protection of its credi-
tors and its stockholders.
Upon the bill filed by Mrs. A. Mel.
Harrison, the largest unsecured cred
ltor and the president of the company,
and others, through their attorneys,
/ K. Gray Williams, of Winchester, and
Colonel Forrest w. Brown, Of Charles
Town, Judge ]. NJ. Woods appointed
as receivers William r. Shaffer, pres
| ident of the New Haven Pulp an6
Board Company, of New Haven, Conn,
Henry W. Brooks, Jr., vce-president
Of the Industrial Management Corpo-
ration, IA Wall street, New York
City, an expert in the reorganization
OF industrial concerns, who has had
large practical experience in the pa
| per board industry, and p. p. Nelson.
who has long been the vice president
| and general manager of the Haltown
| Paper Board Company.
The receivers issued statement,
that they were confident the plan;
could continue operations and soon
| be put on profitable basis, provided
all creditors would cooperate with the
receivers. 1t was pointed out by the
receivers that the Halltown Paper
Board Company made large profits in
1915 and 1919, and that in 1920 its
/ profits rose to more than $4,000.
The expansion of its business"
continued the receivers in their state
ment, "was so rapid that its maange-
ment was required TO invest large sums
! IN Improvement and enlargement OF
It's manufacturing facilities This
capital outlay was not provided for by
the issuance of long-term securities
out the management hoped, out of the
continuance of the profits il was then
| enjoying, to pay off the large indebt-
edness created for these improvements
and enlargements. Unfortunately. the
sudden slump in this industry that
came in the last part of 1920 caught
this company, as it did MANY others.
with large floating Indebtedness and
maturing obligations for raw materials
purchased at high prices. In other
words, the company had purchased o1.
a high market and was forced TO sci
on rapidly declining market
THE company did not seek to C
cape its obligations to pay for
materials ii had agreed to buv at peak
prices, while many of those who had
| agreed to purchase its product at Sim
liar high prices either deliberately can
celled their purchases or were unahIc
to buy, by reason of the distressing de
| preston in business"
The receivers stated that the Hall
town Paper Board Company has give
no liens Except trust 10 years old to
secure only nine hundred dollars)
made no preferences, and that its as
sets are available as a trust fund alike
for all of its creditors. 1t is emphasiz-
ed, therefore, in a letter sent out bv
creditors representing about eighty per
cent of the total Indebtedness of the
company, that bankruptcy proceedings
could accomplish no useful purpose
and would merely interfere with the
promising efforts OF the receivers to
continue the operations of the plant
and put il again on a prosperous Ia
sis, in which event all creditors can
be paid or secured.
The receivers stated that while the
! total Indebtedness of the company c
4 little more than two hundred thous,
and dollars, this is reduced by good
current accounts receivable anI stock
! on hand 10 about one hundred thous-
and dollars. The receivers point out
! that The productive value of the plant
OF tine p9'ltOwn Paper Board COMPANY
, according 10 an Independent aDpraisc.
ment made November 10Th. 1919 ie
about 1857 10000 The receivers then
| cav.
''Whie the reproductive value Of
the plant is more than three times the
excess OF current liabilities over cur
rent assets, the bill filed by Mrs A,
Mel. Harrison, owner Of most Of the
stoct and the president of tie com.
PAW, AYERS that much of the value Of
this property would be dead we're il
to cease operation, destrov its Crpari-
7atinn and lose t'1~ rood will il has
acquired as tNc result Of fifty years
of successful husi.ecs.
There has been 4 gradual improve
ment in the prices IT which thc pro-
duct Of this mill is sold. Orders aro
plentiful and the plant is running
nipht end dav IT full capacity
The receivers are practical men who
have been in successful business sim
liar 10 the Halltown Paper Board Com
pany. These Pentlcment have under
taken to direct operations Of the mill
and have advised that there is goo6
prospect OF ruttinp the mill aca'0 on q
basis of profitable oneration AMI thiI
conclusion was reached only after ?
very careful examination made by Mr..
! Henry w Brooks, Jr., vice-prcsident
of the Industrial Management Corpora
tion, an cXoert in the reorGanizatio7
and development OF industrial con-
Germs.
L. mas nlsn announced hN the re-