, 1891-08-21
A BIG FAILURE.
American Wheel Company in a
Receivers Hands.
Liabilities of the Concern Said
to be s1,8OO.O 600.
$500 Men Thrown Out of
Employment.
Failure OF a wheel company

CHICAGO, Aug. 2O.-The American
Wheel company, said to be the largest
manufacturers in the world of wheels for
vehicles, is Insolvent. Noble G.. Butler
has been appointed receiver and has pos
session of the different plants of the COM
pany. The total assets OF the company
are 81, los, 900, and the liabilities, ST.
500, 900. 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 made idle.
The company principal works are in In
diana, Ohio and Michigan. but it has
plants in New York, Pennsylvania and
Massachusetts. 1t is an Illinois corpora
ton, but it has little property in this
state. The principal stockholders are in
Indiana.
The company was unable to issue any
part of its unused capital stock, on which
it had depended for funds. Its credit
system was impaired and it was unable to
pay the large obligations falling due from
day to day.
The bill set forth that the manufac-
turers of vehicles throughout the country
are largely dependent on it Tor wheels, as
1t supplies seven elghths of the entire de-
mand of the country. A receiver was
asked for in order thht the plants might
be kent in operation and to prevent forced
sales at a sacrifice, to the detriment of
many creditors and injury ofthe employees.
None of the officers of the wheel company
-.,1l -. H.. L..
pany's attorney, Jacob Newman, said
that now hat a receiver had been ap-
pointed for the whole concern. he was
sure the embarrassment would last but
two or three months, when business
would be resumed.
Receiver Butler was appointed by
Judge Woods of the United States dis
trict court tor 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 as
sets consist of sites, manufacturing plants.
machinery, products, etc, divided as fol-
lows: Indiana, 81, 500, OOO: Ohio, 81 ,000,-
600; Michigan. $40. 900; Pennsylvania.
1920. 900; New York. SS5, 900; Massa.
chusetts. $50, 1000; Illinois 800, 900; other
assets, accounts and cash on hand. $780,
900. The liabilities are made up of bills
OF exchange, uromissory notes, indebted
ness for labor. etc.
The corporation was organized in De-
ccmbcr, 1899. and business was at once
begun on a large scale. Plants were es-
tablished at indianapolis, Fort WAYNE,
Terre Haute and St. Marvs, Ind. Man.
iasburg. Sydney. TALON, Sandusky and
OTTAWA, Ohio; Jackson and Kalamazoo,
Mich; Westchester. Pa and Syracuse
and Shortsville, N Y. The plants at all
these places arc in operation except at
Wcstchcster. A large amount Of property
is also owned in Huntington, Mount
Vernon, O1Pood. Titusville. Auburn and
Salmonv, Ind Lansing. Mich, and Van
wet and Scott, .. The company found
itself under enormous expenses when it
had established all Its branches and was
. compelled to incur large Indebtedness,
pledgingits credit by promissory notes, etc.
Business has been carried on at a profit
until the last six months, since when it
has been extremely dull and to make mat
tiers worse the financial s~tringency caused
creditors to refuse accommodation.