May 25, 1917 



HARDWOOD RECORD 



old 



Paine Company Out of Receivers' Hands 

 What is probably an example o£ the highest efBclency in business admin- 

 istration in the lumber industry is that indicated in the receivership pro- 

 ceedings of the Paine Lumber Co.. Ltd., of Oshkosh, Wis., formally con- 

 cluded in circuit court of Winnebago county. There, on May 19, through 

 an order issued by Judge George W. Burnell discharging the receivers, the 

 Wisconsin Trust Company of Milwaukee, A. L. Osborn of Oshkosh and 

 J. A. Kimberly, Jr., of Neenah. approving their reports an<l accounts and 

 declaring action under the receivership dismissed and the bond of the re- 

 ceivers cancelled. The outstanding feature of the big receivership action 

 is the fact that indebtedness of approximately $1,223,000 was fully dis- 

 charged in two years and one mouth. Judge Burnell commended the re- 

 ceivers for their efficient conduct, stating that it was the most successful 

 procedure of its kind within his knowledge. 



The action for the receivership against the Paine Lumber Company, Ltd.. 

 was brought by George E. Foster and Charles Xevitt. The first formal step 

 was the organization of the Langlade Land & Timber Company, a half mil- 

 lion dollar corporation which took over the vast timber holdings in Langlade 

 county of the Paine Lumber Company, and has erected a huge sawmill and 

 other plants to dispose of the timber and convert it into lumber. Claims of 

 the numerous creditors were disposed of through formal court action at 

 regular intervals since the receivers were named, and now every cent of 

 debts has been paid, and the property and operations of sash and door plant 

 again in the hands of the original holding corporation. 



The final report of the receivers showed that contingent claims tiled by 

 the Meilen Lumber Company had been vohintarily withilrawn and that the 

 Perkins Glue Company had tiled a contingent claim, but had consented to 

 the discharge of the receivers with liability as to that claim and for its dis- 

 allowance. The only contingent claims remaining are those of the bond- 

 holders of the Langlade Land & Timber Company. All assets as compiled 

 from a report of expert accountants have been turned over to the company 

 by the receivers, and their report also shows that all expenses incurred by 

 the administration of the receivership have been fully paid. The Paine 

 Lumber Company has agreed to deliver to the receivers a bond of $.jO,000 

 to hold them free against any liabilities to the nation or state for taxes 

 and other forms of possible in<lebtednoss. 



Committee Report on Houston Operations 



The creditors' committee of George T. Houston & Co. and Houston 

 Brothers, under whose administration the affairs of the two firms have 

 been conducted since .\ugust last in charge of William Wilms, has just 

 obtained a further extension of the creditors' agreement of November 1 

 last, for a period of six months. 



Through sale of scattering timber holdings and earnings from opera- 

 tions, the indebtedness of the firms has been materially reduced and from 

 a statement which has just been issued to the commercial agencies showing 

 the financial condition as of May 1 it is apparent that the ratio of current 

 assets to liabilities is almost 1 to 1. a very gratifying result to all parties 

 concerned. 



The stock of logs on hand available for mill operations at Vicksburg is 

 ample to continue sawing for at least sixty days and the creditors' com- 

 mittee will be in a position, if necessary, to liquidate the remaining out- 

 standing indebtedness without sacrificing any of the valuable timber hold- 

 ings of the firm. 



Otis Company Assists Employes 



The Otis Manufacturing Company of Xew 

 Orleans has voluntarily met increased living 

 cost by raising the wage scale of its employes a 

 straight ten per cent. As 250 New Orleans 

 families are represented in the employed forces 

 of the Otis company, the increase will have 

 material bearing on the population of the city. 

 In reply to the announcement of the wage in- 

 crease, the employes organized to demonstrate 

 their appreciation, the expression of which took 

 the form of a parade through the property of 

 the Otis company. Suitably inscribed banners 

 were carried, expressing the thanks of the 

 marchers. 



The Otis company was established in 1S70 by 

 the late Henry Otis. Owning a complete steam- 

 ship line, which keeps it supplied with mahog- 

 any logs from the tropics, it is enabled to oper- 

 ate continuously. The Otis iMant is said to be 

 the largest producer of mahogany Uinilicr in the 

 world. 



Hardwood Mill for Ashdown, Ark. 



It is reported from Little Uock. Ark., that :i 

 big hardwood mill and planer will soon be h' 

 cated on a tract of sixteen acres, a mile easi 

 of the city. It Is said the pay roll will be 

 $5,000 a month. Six small subsidiary mills lo 

 cated along the Little and Red Rivers will co- 

 operate with the larger plant. 



Enlarging Millwork Plant 



The Wilbur Lumber Company, Waukesha, Wis., has under construction 

 the erection of an addition to its millwork plant, which will be 266x38 

 feet, providing for about 10,000 feet additional floor space. New machinery 

 will be installed and the present equipment re-arranged. 



Mengel Box Company Gets Big Order 



One of the first large government war orders to be placed in the Louis- 

 ville district was announced a short time ago by the Mengel Box Company, 

 which reported that it had received a large ammunition box contract, 

 and would make up approximately 500,000 boxes for the use of arsenals 

 and manufacturers in supplying the navy, principally. 



Col. C. C. Mengel closed the deal in the East and has just returned 

 with the order, which will be rushed right through the plant. During 

 the past two years the company has handled several large shell and am- 

 munition box contracts for American manufacturers supplying the Euro- 

 pean and allied" government demand, and is well fixed to handle this big 

 order. Rumors are to the effect that the order will run to about an even 

 million dollars, the boxes being large and of unusually substantial con- 

 struction. 



Memphis Preparing for War Business 



Members of the hardwood trade here are still confident that there will 

 be large orders from government sources and they are making prepara- 

 tions to take care of these with as little delay as possible. It is quite 

 '.■enerally understood that the improvement in the flat car situation here 

 is directly the result of the appeals made by lumber interests to the 

 authorities at Washington to provide enough timbers to take care of needs 

 of the government along this line. All other appeals had been without 

 effect but when the government became impressed with the importance of 

 preparedness along this line results were forthcoming in rather quick 

 order. Box interests are already securing orders for war purposes and 

 the stave people are anticipating developments along this line in the 

 near future in the industry they represent. Other woodworking interests 

 are also indulging in preliminary efforts to take care of what may be 

 required of them and altogether lumbermen in all lines are showing a 

 spirit of pariotism that is quite marked. The American Oak Manufac- 

 turers' Association, the Gum Lumber Manufacturers' Association and the 

 .Vssoclated Cooperage Industries are all keeping in close touch with 

 developments at Washington and they will be ready with little advance 

 notice to look after the needs of rhe authorities. 



There is a possibility that a Memphis firm may secure contracts for 

 the building of submarine chasers. Joe Lamb of the Larkin Company of 

 .Vmerlca, which operates a big branch plant here, has submitted bids for 

 the construction of some of these destroyers and has only recently returned 

 from Washington where he went in connection with these bids. He 

 says that if the contracts are awarded to him or his firm for the building 

 of the hulls for these craft he will begin the building of ways on the 

 Mississippi at once preliminary to the actual construction of these 

 chasers. It is estimated that 90 to 100 days are required to construct the 

 hulls. 



Joe Thompson Heads Riel-Kadel Limiber Company 



Joe Thompson, formerly vice-president of the Dudley Lumber Company, 

 Inc., of Memphis, has assumed the presidency of the Riel-Kadel Lumber 



OTIS EMPLOYES EXPRESS APPRECIATION BY PARADE 



