The fact that the last annual statement does not account for new money, the proceeds of the last stock issue, also is being investigated.
Secretary Arthur had a different explanation to make.
“The panic of last fall, and vegetarianism to which the poor were reduced when thrown out of employment,” he declared, “are responsible for most of our troubles.
“It is a well known fact that the company supplied two-thirds of the oysters, fish, and all sea food eaten in this country. The bulk of this trade is among poor people. The company’s chief business has been in fish that retails at 8, 10, and 15 cents a pound, especially in large cities. We depended most upon our business in fresh water fish--the largest in the world in herring, lake perch and such cheaper varieties. This trade came from working people.
“When the working people were thrown out of employment and stopped buying fish, our trade fell off tremendously. It has just begun to pick up, and if the bankers had not taken alarm and had given us a little more time, we should have come out all right.”
Mr. Arthur said that the $1,000,000 acquired in the last issue of preferred stock had mostly gone to pay short term notes.
Receiver Harrison in the afternoon went to Lake Geneva to hold a conference with Judge Kohlsaat, who had been originally selected as the judge before whom the receivership proceedings were to be held.
“I wish to secure the fullest authority for conducting the business, which is based so largely upon perishable products, so that there will be no loss,” said Mr. Harrison. “I already have that power, but I want to have it specified more clearly.”
Representatives from several railroads called on Mr. Harrison before his departure to ask what should be done with quantities of fish that were standing in the cars on sidetracks. The company has $600,000 in available cash to carry on its business. It is estimated that $1,000,000 will be needed.
Mr. Harrison made a statement in which he said:
“From the examination of the books of Robert Z. Link & Co. that has been possible since my appointment as receiver I should say that the Link family owns about 60 per cent of the preferred, and about 50 per cent of the common stock. When the $1,000,000 of preferred stock was issued within the year, it would appear that the Link family paid their assessment on this stock and took their full pro rata, and I cannot find that any transfer of any of their shares has been made.”