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THE MUSIC TRADE REVIEW
debentures can be issued under the producing value. The vendors guarantee
articles of association. The prefer- that the stock has been taken and the book
A LONDON SYNDICATE HAS MADE A PROPOSI-
ence shares will be entitled out of the debts valued on the same lines as for eleven
TION OF $ 6 , 0 0 0 , 0 0 0 FOR THEIR KUSINESS.
profits to a fixed cumulative preferential years past.
THE MATTER STILT, UNDER CONSID-
dividend of five per cent, per annum, pay-
The Messrs. G. N. Read, Son & Co.,
E R A T I O N - — C H A S . STEINWAY
able
half-yearly,
on
the
first
day
of
Febru-
chartered
accountants of London, after
STILL IN EUROPE.
ary and August in each year, and will rank complete investigation, certify the profits
Thursday extended notices appeared in in respect of capital in priority to the or- of the business to have amounted in the
the columns of some of the daily papers in dinary shares. The first dividend will be past eleven years to ,£950,826, or an aver-
New York reporting the fact that Stein- calculated from the payment of the install- age for that period per annum of ,£86,439.
way & Sons had sold out their entire man- ments on both the ordinary and preference
GUARANTEE FROM VENDORS.
ufacturing business to a syndicate of shares.
The vendors have agreed to deposit
English capitalists for $6,ooo,ooo.
The directors of the new concern are: ,£100,000 in the hand of independent trus-
Now that is usually the way with the Charles H. Steinway, chairman; Fred. T.
daily papers—to rush into print with any Steinway, Henry Ziegler, N. Stetson, lid- tees to be invested in British Government
special report wherein a great name or win Eshelby, London manager; Arthur securities for three years and made avail-
able in case the profits for that period
institution is concerned.
von Holwede, Hamburg manager; S. Ar- should in any one year be insufficient to
When we interviewed Chas. F. Tretbar thur Chappell.
pay 8 per cent, per annum on the ordinary
yesterday at twelve o'clock regarding the
PROSPECTUS OF NEW CONCERN.
shares. The vendors are absolutely con-
alleged sale he said :
The prospectus of the company, issued fident that recourse to such fund will not be
"It is not definitely settled."
necessary.
"Then, Mr. Tretbar," we asked, "the in London, says that this company has been
In the year 1896, the net earnings in
report which has appeared in the papers formed for the purpose of acquiring the
London
and Hamburg showed an increase,
claiming that Steinway & Sons have corporate stock of Steinway & Sons, whose
and
the
American
sales of the present year
sold out their business for $6,000,000 is business is carried on in London, Ham-
indicate
that
the
trade
is in a prosperous
burg and New York, and who are a corpor-
not so?"
condition.
"Not yet. I do not deny but that we ation registered in accordance with the
The proportion of the stock of Stein-
have been and are now considering the laws of the State of New York.
way
& Sons not at present being acquired
The business was founded by Henry
matter. The proposition has been made
by
the
company, consisting of less than
Englehard Steinway and his four sons over
us, and it remains for us to act."
one-tenth,
remains the property of one
Thus Steinway & Sons deny through forty years ago, it has since remained in
person,
who
is not attracted by the price
Mr. Tretbar that the sale has actually been the family, and is now carried on by grand-
accepted
by
the
other vendors. The un-
made. They do not, however, deny that sons of the original founder.
issued
capital
will
be available for the
The formation of the company at the
it is a probability that it will take place in
purchase
of
this
interest
should arrange-
the near future. This is not the first time present time is regarded expedient in con-
ments
for
its
acquisition
be
hereafter made,
that they have been approached by syndi- sequence cf the death, in November last, of
or
for
other
purposes.
William Steinway, the largest of the stock-
cates for a sale of their business.
No material change is contemplated in
A report from Europe says that a pros- holders of Steinway & Sons, who was one
the
management of the business, and the
pectus of the new syndicate and a call for of the original proprietors, and, with the
principal
directors and managers have
subscriptions had been issued in London late Theodore Steinway, owned three-fifths
agreed
to
act as directors of the new
last week. This advertisement gives the of the entire stock.
company.
•Among the important assets of Stein-
capital stock as ,£1,250,000, the company's
property consisting of Steinway Hall on way & Sons are the freehold properties in
Muehlfeld Affairs.
East Fourteenth street, huge factory on New York and Long Island City, the val-
Park avenue, another in Astoria, a large fac- uable stock of pianos finished and unfin-
The relations of the partners in the firm
tory at Hamburg, Germany, and warerooms ished, the machinery and plant in the of Muehlfeld & Co., piano manufacturers,
foundries and factories, the stock of tim- doing business at 511 West 137th street,
in London.
Agents of London capitalists have fre- ber and materials, book debts and good are so inharmonious that an application
quently made propositions to the company, will. The benefit of the business as a go- was made Tuesday to Judge Stover, in the
and the matter rests now solely in the ing concern, subject to its liabilities, and Supreme Court, for the appointment of a
hands of Steinway & Sons. A proposition of all profits from Jan. 1, 1897, will accrue receiver. A judgment, as stated in The
has been made them for the purchase of to the company to the extent to which they Review last week, stands against the firm,
their entire business by a syndicate of will acquire the stock of the corporation and efforts are being made to have it set
and thus enable the directors, after pay- aside.
English capitalists. Will they accept?
At the present time they have the matter ing full dividends for the balance of the
In the hands of Mr. Garritson and his
under serious consideration, all the reports present year, to carry forward a handsome
surplus of undivided profit.
associates, the Gildemeester & Kroeger pro-
to the contrary notwithstanding.
The freehold properties in the United ducts are winning laurels at many promi-
Chas. H. Steinway, president of the cor-
States
have been valued at ,£267,460 by nent points. He says he finds no difficulty
poration, is now in London.
Folsom
Brothers and Julius Von Huner- whatever in securing desirable representa-
The Times of yesterday contained an
bein,
well-known
valuers of New York.
extended notice regarding the alleged
tion, and it is reported by those now hand-
Messrs. Steinway & Sons' balance sheet ling these instruments that they find a
Steinway sale and stated, among other
things:
of December 31, 1896, shows, among the ready sale, particularly arrong those who
The sale involves one of the largest principal assets, stocks of pianos finished are good judges of merit.
cash transactions recorded in England in and unfinished, ,£137,151; stock of timber
many years. The purchase price, in round and materials, ,£127,176, and book debts,
numbers, is ,£1,080,600, or more than ,£37,780. The other tangible assets are
$5,400,000.
leaseholds and stock in London and Ham-
The name of the reorganized concern burg, machinery and plant, fixtures, uten-
will be Steinway & Sons, Limited, and its sils, horses and vans, bills, securities and
capital is placed at ,£1,250,000, divided into cash.
75,000 five per cent, cumulative pref-
No attempt has been made to put any
erence shares of / i o each, and 100,- values on the patents, processes, and skilled
000 ordinary shares of ,£5 each. No methods which have a very large practical
Will Steinways Sell?