Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-07-24
BARRETT CD. ASSETS
BELIEVED IN EXCESS
OF ALL LIABILITIES
EY RALPH SMITH
(Staff Correspondent of The Journal

AUGUSTA, Ga, July 22.-The as.
sets of BARRETT G Co., Augusta cot
ton brokers, if properly admins
tered, VIII pay every creditor a hun
dfed cents on the dollar, according
to an announcement emanatinS
last night from a meeting of credit.
; ors which has been in session at
the Richmond hotel for two days.
The statement was made by the
largest individual creditor of the
firm. and was predicated on a pre-
| liminary audit of the accounts of
the firm. This audidt placed the
| company's liabilities at exceed ng
one million dollars" and it's assets
at approximately one hundred thou.
sand dollars in excess of liabilities
! In making the statement the cred
| itOr in question added that he, per-
! Sonally, would attempt to swim the
| Mississippi river to serve Frank H
Barrett, head of the embarrassed
cotton house, in whose ability and
integrity he expressed the utmost
confidence.
The proper administration" of
the company's assets to which the
creditor. alluded, involves handling
of semi-liquid or semi-frozen assets
of the company. These, it is stated,
| consist in large part of crop and
farm mortgages that depend, in con
siderable measure, upon skllfu
management if they are to yield face
/ value.
Committee Issues Statement
At midnight the creditors meet
/ ing had not fully determined upon
the details of the course that is to
be pursued in meeting the situation
that has developed in consequence
OF the firms embarrassment.
1t is understood, however, that the
/ creditors are agreed as to the gen.
eral plan, which involves the ap-
pointment of a committee to super
wise the affairs Of the company.
They issued the following state
ment:
"A committee representing a ma.
jority of the creditors in amount has
been in conference during the aft.
ernoon and evening.
"a financial statement of Barrett
& Co. has been received.
ut is the purpose to appoint a per-
manent committee of three for the
iloIlullitS VI Tic dlIdIIS VI Tie GULF
pany."
Although their optimism as to the
ultimate solvency of Barrett &
Co. has not been influenced 2by
the fact, it is the belief of
many creditors that the single indie
pendent interest of Frank H. Bar
rett and members of his family will
more than offset any loss they may
have experienced through the en-
barrassment of the cotton company.
The Barretts are interested in the
production, sale and distribution of
Hills mixture, solution for the de,
struction of the boil weevil.
The difficulties of Barrett & Co..
which enjoyed the reputation Of be-
ing one of the biggest spot cotton
houses in the world, has been at
tended by no excitement in Augusta.
Business as usual" has been the
order ever since the rumors of the
embarrassment Of the company be-
came noised about the streets. No
local bank was involved to any con-
siderable extent.
The creditors attending the meet
ing, without exception, are from
without Georgia, chiefly New York,
Boston, New Orleans and Carolina
cities. No one institution, it is
stated, is heavily involved in the
general acceptance of the term.
Confidence Expressed
Frank II. Barrett has been del
uged with kilograms and letters
since the first announcement of his
firms difficulties came out of New
York in the announcement that he
had authorized the sale of his seat
on the cotton exchange because he
was unable to meet his obligations.
From every part of the country tele-
grams have come, assuring him of
confidence and offering aid in the
present emergency. From through
out the south he has received hun
dreds of letter; of the same tenor.
Aside from the postal and tele,
grammic activities reflected by these
communications there has been
only one other unusual activity evil
denced in Augusta-that was the
Clamor at the Atlantic States ware
houc- today Tor cotton stored there
in the name of Barrett & Co., which
had been received by the company
from producers in different sections
of the belt.
Some of these people, alarmed by
fu1nOrS, sought TO remove their cot
ton from the warehouse, and for
time there WAS much activity. This
however, was stopped by a restrain
ing order issued by Judge A. l..
Franklin, of the Richmond superior
court, at the behest of the Atlantic
States warehouse, on petition filed
b yHamilton Fhinizy.
Cotton Held in Warehouse
The court order temporarily re-
strains any owner of the cotton
placed in the warehouse by Barrett
& Co. from removing it, pending the
final adjustment of the company's
affairs. The purpose of this court
proceeding was 10 preserve the
present status of the physical assets
of the Barrett company and to pro
tect cotton producers against the
possibility Of loss through the hasty
withdrawal Of cotton from the ware
house.
The petition asserts that the Allan
tic States warehouse has $500 bales
of cotton in storage, which cotton
was placed there by Barrett & Co.,
and against which cotton the com
pany has issued warehouse receipts.
1t states that these $500 bales are
sufficient in number to cover every
certificate issued by the warehouse
to Barrett G. Co., and against which
the Barrett company has borrowed
money from banks.
Judge Franklin's order names
Louis E. Gercke as receiver for the