SUES ON NOTES FOR $140,000
Estate of the Late Edward Holbrook Brings Action in New York Supreme Court Against Mt. Vernon Co. Silversmiths
A suit by the estate of Edward Holbrook, late president of the Gorham Co. and Gorham Mfg. Co., to recover on notes aggregating $140,000 made by the Mt. Vernon Co., Silversmiths, was filed in the New York Supreme Court last Thursday, through Dawes, Abbott & Littlefield, attorneys.
The first claim is on notes of $20,000, signed July 29, 1918, and payable May 19, 1919; the second claim is for $10,000 made Nov. 22, 1918, payable in six months; the third is for $10,000, dated Dec. 12, 1918, payable on demand; the fourth is for $15,000 on Jan. 29, 1919, payable on demand. The other notes all payable on demand, were made as follows: $30,000 on Feb. 13, and $29,000 on Feb. 2, 1919.
Except for the latter notes, all were signed by H. A. MacFarland, president. The others were signed by William H. Goodman, treasurer.
Mr. Holbrook died May 19, 1919, and his executors made demand for the payment of the notes before bringing suit.
It was recently reported that an application to dissolve the Mount Vernon corporation had been made, but the original proceedings that were started for this purpose were discontinued, though later action was taken under another section of the statutes to wind up the corporation with the directors as trustees, in this way avoiding receivership.
No answer has been filed in the suit brought by the Holbrook estate and it is not probable that one will be for a short time.
According to George Comstock of the firm of Olney & Comstock, attorneys for the corporation, the suit is welcome as an effort to straighten out certain matters between the estate and the company. The defense will be that the notes were paid by issuance of stock.
The Mount Vernon Co., Silversmiths, succeeded to the business of several old concerns. The company was incorporated in the latter part of 1914, under the laws of New York with an authorized capital stock of $600,000 of which $200,000 was preferred and $400,000 common stock. The company was organized for the purpose of purchasing the Rogers Williams Silver Co., of Providence, R. I., and H. A. MacFarland, Inc., of Mt. Vernon, N. Y., taking the assets and liabilities of both companies, and for the purpose also of purchasing the assets of the Mauser Mfg. Co., Inc., of Mt. Vernon, N. Y.; the company was independent of and had no connections whatever with any silver company notwithstanding that the Gorham Co. was part owner and stockholder of the Roger Williams Silver Co., and H. A. MacFarland, Inc. In January, 1914, the company made arrangements to purchase the real estate owned by the H. A. MacFarland, Inc., and Mauser Mfg. Co. The Rogers Williams Silver Co. and the plants of the Roger Williams Silver Co., and H. A. MacFarland, Inc., were moved to the factory of the Mauser Mfg. Co. The Rogers Williams Silver Co. business was started as the Howard & Co., Inc., and was later known as the Howard Sterling Co. before it was reorganized as the Roger Williams Silver Co.
Source: The Jewelers' Circular - 14th December 1921