The morning call., 1891-08-21
Embarrassment Of the American
Wheel Company.
Plants in Six Different States Shut Down
and 1900 Employees Idle.
A Receiver Appointed for the Entire Con
Germ - The Collapse Caused by The
Strinsency in the Money Market.
Epecial to THE MORNING CALI.

CHICAGO, Aug. 20.-The American Wheel
company, said to be the largest manufac-
turers In the world Of wheels for vehicles,
Is lnsolvent. Noble c. Butler has been ap-
pointed receiver, and has possession of the
dinerent plants of the company. The total
assets OF the company are S4.i05, 600, and
the liabilities S1.S00.0OO. The stringency of
the money market and inability to secure
extension of obligations caused the collapse.
All the shops and plants of the company, in
SIX different States, are temporarily closed,
aud 2joO employees made idle. Those most
heavily interested and who caused the ap-
polntment OF receiver assert that the COM
pany will be able to lquidate all its in
debtedness and pay the stock holders dollar
Tor dollar on their investment. The appli-
cation Tor receiver was made very quietly
late Wednesday afternoon. and the bill was
suppressed until late this afternoon, in or
der that the receiver might secure full pos
session and forestal attaching creditors,
this being done to give all interested parties
an equitable share in the proceeds.
The company's principal works are In In
diana, Ohio and Michigan, but it has plants
ln New York, Pennsylvania aud Massa-
chusettS. 1t is an Illinois corporation, but
has little property in this State The prin-
cipal stockholders are in Indiana. The
company was unable TO issue any part of IFS
unused capital stock on which it had de-
pended for funds. Its credit became i'm
paired, and it was unable to pay large
obligations falling due from day to day.
The bill set forth that the manufacturers Of
vehicles throughout the country are largely
dependent on 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 the many creditors and
the injury of the employees. None of the
officers of the wheel company could be seen
this evening, but the cOmpanys attorney,
Jacob Newman, said that now receiver
had been appointed for the whole concern,
he was sure the embarrassment would last
but two or three months, when business
will be resumed.
Receiver Butler was appointed by Judge
Woods Of the United States District Court
for Northern Indiana, and by United States
tIAoNAiSo u CNlibC l1iOuSCbI III tlilS CITY. Inc
Judges in the other States named also ap-
pointed Butler. The bill asking for a re-
ceiver states that the assets consist of sites,
manufacturing plants, machinery, products,
etc, divided as follows Indiana. ST.,
10000; Ohio, 81, 100000; Michigan, $40. 600: !:
Pennsylvania, S222 600; New York.
$4,000; Massachusetts, $4,000; Illinois.
$4,000; other assets, accounts and cash on
hand, SS00,000 The liabilities are made up
of bills of exchange, promissory notes, in
debtedness for labor, etc. The corporation
was organized in December, 1889, ana busi-
ness was at once begun on large scale.
Plants were established at Indianapolis,
Fort Wayne, Terre Haute and st. Marys.
Ind; Miamisburg, sydney, Gallon, San
duSky and Ottawa, Ohio; Jackson and Kal-
amazoO, Mich. WeStchester, Pa, and Syra-
cuse and Shortsville. n. Y. The plants at
all these places are in operation except at
Westminster. A large amount of property
Is also owned in Huntington, Mount Yer
non, Osgood, Titusville, Auburn and Sal
mony. Ind; Lansing, Mich, and Vanwert
and Scott, Ohio.
The company found itself under enor-
nous expenses when it had established all
the branches, and was compelled to incur
large indebtedness, pledging its 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 matters worse, the finan-
cial stringency caused creditors to refuse
accommodation