The record-union., 1891-08-21
FINANCIALLY EMBARRASSED.
THE AMERICAN WHEEL COM
PANY INSOLVENT.
One of tho Largest Manufacturers in
the World, Having Plants in
Several states.
Special to the REcoRp.uS1ox.


CHICAGO, Aug. 20. = The American
Wheel Company, said to be the largest
manufacturers in the the world of wheels
for vehicles, is insolvent. Noble c.. But
Ter has been appointed Receiver, and has
possession of the different plants of the
company. The total assets of the COM
pany are S,105, 900, and the liabilities
81, 100000. The stringency of the money
market and inability to secure an extern
sion of obligations caused the collapse.
All the shops and plants of the company,
in six different States, are temporarily
| closed, and $500 employees are made
idle.
+ Those most heavily interested, and who
caused the appointment of a Receiver, as
sert that the company will be able to
| liquidate all its Indebtedness and pay the
| stockholders dollar for dollar on their in
vestment. The application for Receiver
was made very quietly late Wednesday
afternoon, and the bill suppressed until
| late this afternoon, in order that the Re-
| celver might secure full possession and
! forestall attacking creditors, this being
done in order to give all interested parties
| an equitable share in the proceeds.
The companys principal works are in
Indiana, Ohio and Michigan, but it has
| plants in New York, Pennsylvania and
Massachusetts. 1t Is an Illinois corpora
| ton, but has little property in this State
! The principal stockholders are in Indi-
ana.
Receiver Butler was appointed by
Judge Woods of the United States Dis
| trict Court for Northern Indiana and by
| United States District Judge Blodgett in
this city. Judges in the other States
named also appointed Butler.
The bill asking for a receiver states that
the assets consist of sites, manufacturing
vided as follows: indiana. 81, 500. 900:
Ohio, 81 600, coo; Michigan, s440, 900; Penn
| sylvania, 100000; New York, SS5, COO;
Massachusetts, $4,000; Illinois, $4,000
The other assets are: Accounts and cash
on hand, $S00,000. The Liabilities are
made up OF bills Of exchange, promissory
notes, indebtedness Tor labor, etc.
The corporation was organized in De-
! comber, 1889, and business at once began
on large scale. Plants wGro established
at indianapolis, Fort Wayne Terre
Haute, and at st. Marys, Ind; Miamas-
burg, sydney, Gallon, Sandusky and
Ottawa, Ohio; Jackson and Kalamazoo,
Mich; Westchester, Pa, and Syracuse
and ShortsVille, y. Y. The plants at all
these places are in operation EXCEPT at
Westchester. a largo amount of prop
erty is also owned in Huntington, Mount
Vernon, Osgood, Titusyille, Auburn, and
Salmony, Ind; Lansing, Mich, and
Fanwert and Scott, Ohio.
The company found itself under enor-
nous expense when it had established
all the branches and was compelled to in
cur a large Indebtedness, pledging its
credit by promissory notes, ETC. The
business had been carried on at profit
until the last six months, since when il
has been extremely dull and to make
matters worse the financial stringency
caused the creditors to refuse accommo-
dation. The company was unable to
issue any part of its unused capital stock,
on which it had depended for funds. Its
credit became impaired, and it was un-
able to pay the large obligations falling
due from day to day.
The bill sets forth that the manufact-
urers of vehicles throughout the country
are largely dependent on it for wheels, as
1t supplies seven-eighths of the entire de-
mand of the country. A receiver was
asked for in order that the plants might
be kept in operation and to prevent
forced sales st a sacrifice to the detriment
of many creditors and the injury of the
employees.
None of the officers of the wheel COM
pany could be seen this evening, but the
company's attorney, Jacob Newman.
said that now a receiver had been ap-
pointed for tho whole concern he was
sure the embarrassment would last but
two or three months, when business
would be resumed.