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THE MUSIC TRADE REVIEW
FIRST MEETING OF BAILEY CREDITORS.
Statement of Bailey Attorney Followed by Report of Lindsay Russell, Receiver-—Net Earnings
of the Company Since January—Officers Voted Themselves Additional Salary Amounting to
Nearly $28,000—C. H. Wood, Chairman of Meeting—The Discussion at the Belmont—As-
surances of Bjur and Craighead—A Creditors' Committee Appointed Consisting of Messrs.
Looschen, Atherton, Jacobs and Wood Will Act With
Receiver—Resolutions Adopted—
Large Amount Due Bloomingdale Bros, for Which They Hold Security.
A meeting of creditors of the Bailey Piano Co.
was held at the concern's office, 138th street and
Canal place, Saturday morning, 8th inst., at 10.30
o'clock. The following creditors attended: C. P.
Goepel & Co., per R. Schroeder; Carter, Ledyard
& Milburn, for American Express Co., by John G.
Milburn, Jr.; Joseph N. Courtade, Jr.; Baeder,
Adamson & Co., per C. G. Hill; H. Bohlen &
Bro., T. W. Thayer Co.; the Fairbanks Co., M. L.
Milligan, president, M. S. Hogar, attorney; H.
Hough, for Price, Waterhouse & Co.; Crane Felt
Co., J. H. Burrill, secretary; William L. Byrnes,
J. Goldberg; Edward Weber, per J. Homer Hil-
dreth, attorney; F. W. Young & Co., Ilsley &
Held Co.; Universal Music Co., by R. W. Law-
rence; David H. Schmidt, by Robert L. Kapp;
Matteawan Steel & Iron Co., by L. B. Eggleston;
J. E. Davis Manufacturing Co., J. E. Davis, presi-
dent; Robert C. Wandling, president R. R. R.
Woodworking Co.; Phelps Piano Case Co., M. S.
Phelps; Music Trades Co., Milton Weil, treas-
urer; Grubb & Kosegarten Bros., A. O. Kosegar-
ten, treasurer; Abbott Piano Action Co., per
Charles Jacob; Mayer & Lowenstein, by Henry
Reisenbach; Charles Reithmuller;-the Looschen
Piano Case Co., J. J. Looschen, president; Sittner
Printing Co., Louis Sittner; E. Germain, per L.
Germain; Wood'& Brooks Co., C. H. Wood, treas-
urer; Charles Ramsey; E. L. Atherton, Premier
Pneumatic Action Co.; the Wickham Piano
Plate Co., by James Johnson, vice-president.
Stultz the balance. This business is considered
worth $25,000, and can be liquidated if desired.
The book accounts of the company have been as-
signed to Bloomingdale Bros., but the company's
equity in these accounts is placed at $40,000. The
company's liabilities foot up $130,000, and the as-
sets will aggregate a like amount.
"There are three ways to settle this estate, viz.,
in the bankruptcy court, the election of a trus-
tee or iby appointing a creditors' committee, say,
three or four members, who can be vested with
full power to act in the premises and continue
the business in the interest of creditors. This
committee, by strict economy and judicious man-
agement, will be able to pay the creditors in
full. If you close the estate in the bankruptcy
court the assets may probably /bring $25,000, and
this would mean that the creditors would receive
about 25 cents on the dollar." Receiver Russell
next introduced Charles H. Wood, of Wood &
Brooks, of Buffalo, N. Y., who was elected chair-
man of the meeting. Mr. Wood said: "On Fri-
day night several of the largest creditors, repre-
senting, I believe, about two-thirds of the indebt-
edness, met at the Belmont Hotel and discussed
the company's affairs at considerable length. Mr.
W. L. Bjur, Mr. W. B. Craighead and Mr. Louis
Goldman were in attendance, and they cheerfully
furnished us with facts and figures that were
most helpful in determining what should be done
in the premises. It developed that the company
The meeting was opened by Attorney Ludvigh, had overstocked, was poorly managed and when a
who made a statement as follows: "This meeting slight depression ih business set in the officers
is called with a view ot effecting an amicable set- found themselves embarrassed and unable to
tlement of the company's affairs, and we hope to meet pressing obligations, many long past due.
the entire satisfaction of all concerned. We find At the meeting last night we discussed every
in looking over the ground carefully that the phase of the situation, and we concluded that if
company needs capital, and as the officers have no the estate was wound up in the bankruptcy
further resources an extension is the only alterna- court, there would be little left for the creditors.
tive to enable them to bridge over their financial You all know it is a costly proceeding, but I think
difficulties. In talking over the situation with you will all agree if the creditors assume control
the largest creditors they advise that the exten- there is every probability that we will realize
sion be a liberal one, with a reasonable proba- 100 cents on the dollar. Mr. Bjur and Mr. Craig-
bility that its provisions can be carried out. It head assured us if the creditors would take
was proposed that the creditors accept four notes charge they would take off their coats and work
of 25 per cent, each, maturing in 6, 10, 14 and 16 hand in hand with their representatives to place
months. The first note was to be made payable the business on a sound business ibasis. I t was
in six months in view of the dull season being stipulated that Mr. Bjur and Mr. Craighead ac-
near at hand, and which would allow the concern cept smaller salaries until the company's affairs
time to turn themselves. Before going into the were adjusted, and these gentlemen acquiesced to
matter more fully, I think we should hear from this proposition."
Lindsay Russell, who was appointed receiver by
"In selecting a creditors' committee the largest
the court and who is now in charge of the com-
creditors,
who were in business in New York,
pany's business."
were first considered, primarily on account of be-
Receiver Russell made a statement which in ing right on the ground and able to keep in close
part was as follows: "At the outset I wish to touch with the business; in fact, I may add they
state that I have taken out $50,000 worth of in- are none more competent, and I am sure will
surance and transferred $40,000 more, which will serve us wisely and well. The creditors selected
be ample protection. In looking over a report
are: Charles Ramsey, John W. Looschen and E.
made by an expert accountant, I find that the net
L. Atherton, and to-day it was suggested that
earnings of the company from January 5, 1907,
Cnarles Jacobs be added to the list. This move is
to March 5, 1907, was $13,823.50, and deducting
a wise one. He has been connected with the
interest, fixed charges and other expenses,
piano business for over twenty-five years, and
amounting to $4,674.57, left a net balance of
having
had wide experience in financial matters
$9,149.93. The surplus on January 5, 1907, was
$16,239.88, and with the net earnings added gave will prove a valuable acquisition. I think we are
a total of $25,389.81. On March 31, however, I extremely fortunate in securing his services, and
see by the report the officers voted themselves we should thank him for his kindly interest."
The meeting was then organized, and Mr.
additional compensation, amounting to $27,767.36,
and this left a deficit of $2,377.36. This was Wood was elected chairman by acclamation. It
done, I am informed, to avoid taxation.
was moved that the committee be increased to
"An inventory of the stock on hand shows a five, and Mr. Wood was nominated as the fifth
total of $79,627.66, and this included furniture, member. Mr. Wood stated that he had declined
fixtures, etc., valued at $6,000. There are 225 Friday night on the ground that he might handi-
pianos on hand, which will take from $5 to $15 cap the committee in their work. His business
each to complete, and I am advised they will was in Buffalo, and he thought it advisable to
bring $100 and upward. This will augment the have New York manufacturers serve rather than
assets materially. The company is incorporated outside men. Mr. Phelps argued, however, that
with a capital stock of $60,000, of which $52,- Mr. Wood should serve at least in an advisory
000 is paid in. The Stultz Piano Case Co. is a capacity, and cast the deciding vote in case of a
subsidiary interest, and the officers of the Bailey deadlock. Mr. Wood, after considerable pressure,
Piano Co. hold two-thirds of the stock, and Mr. agreed to act as an advisory member on the com-
mittee, which was increased to five members.
The vote was unanimous.
After a general discussion the following resolu-
tion^ was adopted: "That the committee of credit-
ors be vested with full and plenary power to have
the business continued by the receiver until such
time as the receivership is terminated by the
court, and to have the receiver borrow such
money in such manner as may be deemed ad-
visable, and in case of absolute necessity to
purchase supplies for the purpose of continuing
the business. Also give said committee power
to authorize the receiver to sell pianos to reput-
able concerns, having a satisfactory rating, upon
such credit as may be deemed advisable, and,
further, to do all the things above enumerated
after the receiver shall have been terminated by
the court.
The following amendment was offered: That
the committee of creditors send a report to each
creditor embodying a full statement of all busi-
ness done by them, together with such sugges-
tions as they may see fit, at least once in every
three months, except that the first report shall
be made within thirty (30) days.
This resolution was presented at the meeting
and unanimously accepted.
There is a first and second mortgage on the
real estate. Bloomingdale Bros, hold the first on
a loan of $16,000.
The Bailey Piano Co. owes Bloomingdaie
Bros. $190,000, but they hold book accounts ag-
gregating $240,000. Deducting interest and ex-
peases the former has an.equity in same amount-
ing to about $43,000. This leaves assets as fol-
lows:
Stock
$79,627.66
Equity in real estate
8,000.00
Equity in accounts noted above. 43,000.00
$130,627.66
The largest creditors are: Wood & Brooks Co.,
Looschen Piano Case Co., Davis Manufacturing
Co., the Amphion Co., Fairbank Plate Co., Grubb
& Rosengarten, F. W. Young, Price & Waterhouse,
Music Trades Co., Charles Ramsey, C. F. Goepel,
Matteawan Steel & Iron Co., Parker, Young & Co.,
David H. Schmidt. Mrs. W. L. Bjur is also one
of the creditors in the sum of $8,500.
Mr. and Mrs. C. A. Grinnell will attend the
wedding of their niece, Myrtle Belle Brown,
daughter of Dr. H. H. Brown, 838 North Park
avenue, Chicago, and Charles H. McNeil, a t St.
James' Episcopal Church, Chicago, June 12.
"DISTINCTIVELY HIGH GBADE"
She CHRISTMAN
STUDIO GRAND
is the greatest success of the day.
It possesses a scale of rare ever,
ness, a tone of remarkable sonority
and richness, with a quality that
is highly orchestral. Our latest
styles of Grands and Uprights
mark a decided advance in the art
of piano-making. We court inves-
tigation. Some territory still open.
CHRISTNAN SONS, Manufacturer.,
FACTORY AND OFFICE:
969.873 E».t 137th St.
NEW YOR.K
WAREROOMS:
35 Weat 14th St.