Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1922-07-18
RECEIVERS APPOINTED FOR
HALLTOWN PAPER BOARD
COMPANY.

COMPANY.
Due chiefly to the unusual losse
suffered by paper board mills in tn,
last part of 1920 and during the en-
tire year of 1921, the Halltowl
Paper Board Co., was forced to ap
ply for receivers in the interests o.
the protection of its creditors ane
it's stockholders, and Special Re
ceivers were appointed Monday af
ternoon at special term of Court
held by Judge j. M. Woods. The
receivers appointed are all men Of
long experience in the paper boart
business. One of them is Mr.. VIM
K. Shaffer, the president of the New
Haven Pulp & Board Co., New
Haven, Conn, warm persona
friend of Mr.. F. S. Harrison, former
president and manager of the Hall.
town Paper Board Co.; Mr.. Henry
w. Brooks, Jr., vice president of the
Industrial Management Corporation
an expert in the reorganization
of "a Wall Street, New York City,
development of industrial concerns
and who has had large practical ex-
perlence in connection with the
paper board industry. The third
receiver is Mr.. P. P. Nelson, who
has long been the manager and vice
president of the Halltown Paper
Board Co.
The total indebtedness of the
Halltown Paper Board Co., is given
in statement filed with the bill as
about 5000, 100000 which is reduced.
however, by current accounts re-
ceivable and stock on hand to about
S1O9,OOO.0O. An Independent APP
praisement made November 10,
1919, found the reproductive value
of the plant of the Halltown Paper
Board Company about 1857, 592.4O.
While the reproduction value of
the plant is more than three times
the excess of current liabilities over
current assets, the bill filed by Mrs.
A. Mel. Harrison, the owner of
most of the stock and the president
of the company, AYERS that much
value OF the property would be de-
stroyed were it to cease operations,
destroy its organizations and lose
the good will it has acquired as the
result of fifty years of successful
On the other hand, the bill sets
forth that the company is now in a
position where it has orders at a
price that will permit it soon to
operate at a profit when certain
economies are effective in the re
organization contemplated by the
receivers.
There has been a gradual i'm
provement in the price at which the
product of this mile is sold; orders
are plentiful and the plant is running
night and day at full capacity.
The receivers gave out a state
ment in which they emphasize that
the Halltown Paper Board Co. was
not alone in the losses it suffered in
1921 and the last of 1920. Prices
declined rapidly in 1921 and paper
board mills were caught with high
price raw material and were forced
to sell the finished product on a de-
clining market. For example, on
chip board, one of the cheapest
grade manufactured from $110 per
ton to as low as $3.50 per ton f.
o. b., the mill, or drop of $88 90
per ton in a period of nine months.
The Halltown Paper Board Company
filled many of its contracts at a loss
In 1918 and 1919 the company
made satisfactory profits, and in
1920 its profits rose to the large sum
of more than $80,00000. The great
and increased rush of business re-
quired the company to make large
expenditures in the enlargement and
Improvement of it's mill and the
management hoped to pay for these
expenditures out of profits. No
bonds were issued or money on
trust deeds. When the company be-
gan to lose money, therefore, it did
not have available cash assets to
meet its pressing and immediate
obligations. In other words, too
much of its profits made in prosper
Gus years had been locked up in new
buildings, new machinery and assets
that could not be quickly converted
into cash or made he basis of OBJ
tanning cash.
The following additional state
ment was given out from the mill at
Halltown. ''The receivers are prac-
teal men who have been successful
in business similar to the Halltown
Paper Board Co. business. These
gentlemen have undertaken to di-
rect operations of the mill and have
advised that there is a good prospect
of putting the mill again upon a
basis of profitable operation only
after a very careful and thorough
examination.
More than 80 per cent in amount
of the, creditors of the Halltown
Paper Board Company have assent
ed to the plan of operation under the
receivers and we have heard of
none of our creditors who have OBJ
jected to the plan"