Los Angeles herald., 1891-08-21
The American Wheel Com
pany Insolvent.
A Receiver Appointed to Take
Charge of the Concern.
Valuable Properties in Six States
Embarrassed.
The Largest Firm of Its Kind in the
World = Heavy Operating Ex-
penses Given as the Cause
of the Collapse.
Associated Press Dispatches.

CHICAGO, August 20.-The American
Wheel company, said to be the largest
manufacturer of wheels for vehicles in
the world, is insolvent. Noble G. But
Ter has been appointed receiver, and
has possession of the different plants of
thhe company The total assets of the
company are $4, 105, 900, and liabilities
s.. 800, 900. The stringency OF the
money market, and inability to Sc
cure an extension 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.
Those most heavily interested and who
caused the appointment of receiver,
assert that the company will be able to
liquidate all its indebtedness and pay
the stockholders dollar for dollar on their
investment. The application for a
receiver was made very quietly, late
Wednesday afternoon, and the bill was
suppressed until late this afternoon,
in order that the receiver might secure
full possession and forestall attaching
creditors, this being done in order to
give all interested parties an equitable
share in the proceeds. The company's
principal works are in Indiana, Ohio
and Michigan, but it has plants in New
York. Pennsylvania and Massachusetts.
It is an Illinois corporation, but has lit
tie property in this state. The princi-
pal stockholders are in Indiana.
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. The judges in the other
states named also appointed Butler.
The bill asking receiver states that
the assets consist of sites, manufactur-
ing plants, machinery, products, etc, di-
vided as follows: In Indiana, 81 $780,
600: Ohio. $1,000,000; Michigan, $440,-
900; Pennsylvania, 1920, 600; New York,
$B5, 600; Massachusetts,S5 ,S5G, ,66GGG;; !!iii.e:ss
SIC, 600; other assets, accounts and cash
onsshand, 100000. The liabilities are
made up of bills OF exchange, promis-
sorry notes, indebtedness for labor, etc.
The corporation was organized in De-
cember, 1889, and business was at once
begun on large scale. Plants were es-
fablished at Indianapolis, Fort Wayne,
Terra Haute and st. Marys, Ind. Mi
amisburg, Sydney, Gallon, Sandusky
and Ottawa, Ohio; jackson and Kala-
mazoo, Mich; Westchester, Pa, and
Syracuse and Shortsville, N. Y. The
plants at all these places are In opera
tion, except at Westchester. A large
amount of property is also owned in
Huntington, Mount Vernon, Osgood,
Ttusville, Auburn and Salmony, Ind. !;
lansing, Mich, and Van Vert and
Scott, Ohio.
The company found itself under
enormous expense when it had estab-
lished all these branches, pledging its
credit by promissory notes, etc. Busi-
mess had been carried on at profit un-
til the last six months, since when it
has been extremely dull, and to make
matters worse, the financial stringency
caused the creditors to refuse accommo-
dation. The company was unable to
tissue any part of its unused capital
stock, on which it had depended for
fnnds. Its credit became impaired, and
il was unable to pay the large obliga-
tions falling due from day to day.
The bill set forth that the manufac-
turers of vehicles throughout the coun-
try are largely dependent upon it for
wheels, as it supplies seven-eighths OF
the entire demand of the country. A
receiver was asked for in order that the
plants might be kept in operation, and
TO prevent forced sales at 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
pompany's attorney, Jacob Newman.
said that now that receiver has been
appointed for the whole concern, he was
sure its embarrassment would last but
two or three months, when business
would be resumed.