The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-05-07
rs IN A RECEIVERS HANDS
Premier Steel Company Takes Measures
TO Protect ALI Creditors.
John E. MeGsttigan Given Charge Of the
Works by the COurts-No Statement
OF Condition Given Out.

company. appointed John L. McGettigsn
receiver OF the Premier Steel Works. For
several weeks past the affairs of the con-
Germ have been approaching the crisis
which came yesterday afternoon. The
condition Of affairs. however. |
Was carefully concealed from the
public to prevent a multitude of suits be-
tng hIed by creditors and preventing the
appointment of q receiver. Mr.. DePauw.
In his complaint. alleges that he is one of
the largest stockholders in the com pany.
and is also liable as Indorser upon their
paper to the amount of S1OO. 900. In the
complaint the causes which are
alleged to make the appointment of the
receiver necessary are the stringency of
she money market and the recent depres-
sion In the steel market. BY reason of
these facts it Is alleged that the com Dany
has been unable 70 meet the demands OF
Ats creditors upon maturing paper. and
certein notes which are not specifically de-
scr,oed are said to be past due
que within q few days they Will
be unable TO pay at maturity. There has
already matured In bills payable In bank
she sum OF $4,000. which the company pam
pot pay, and bills for the same amount fell
due yesterday. During the. coming week.
It IL alleged. paper OF the concern outstand-
Ing 10 the amount of $4,000 will fall due,
viii fall due soon after. The
petitioner further alleges that he is
liable as indOrser upon all this paper which
the company le now unable to meet and
Will De unable TO meet as the various notes
and account become payable; he alleges
that the company Is lnsOlvent st the pres
ent time. or upon the verge of insolvency,
and that some of the creditors holding
paper are demanding payment of their
claims and threaten suit if they are not
paid should suit be brought on these vari-
Gus claims, and sales made upon execution.
tt Is alleged that the creditors and stock
holders OF the company would sustain un-
necessary loss by the increase of expenses
costs In the multitude of actions.
and would probably not realize
claims. The company has a large force of
men ct work In this establishment. and q
gress many large contracts on hand. max
bng 1t necessary shat the operation of the
works should be continued. and If the re-
ceiver be not appointed to take charge OF
the assets. they will be wasted and dissi-
pated by the multiplicity of sales upon
execution. He AYERS that if the appoint
3ent of the receiver be refused. he. as In
dorser uDon the paper OF the concern.
viii lose $50 600 of the amount for which he
Is liable. and the assets of the company
will amount to at least $4,000 less than Its
liabilities. The petition asks that a re-
ceiver be appointed TO take immediate
charge of all the books. property and as
sets of the company of every description
and apply them under the direction of the
court to the liquidation of the indebted
ness. the receiver To continue the operation
OF the works pending the hnal adjustment
of the affairs of the company.
The petition was presented by Ayres q
Jones and Elliott IL Elliott q immediate
action was taken upon IL by Judge Brown.
John Z. McGettigan, presidents of the In
disnapolls Switch IL Frog Company. was
appointed receiver and gave bond with &.
NJ DApnn- launAa III William nfen Graah
Am and A. c. Ayres as sureties. The
statute does not require bond TO be gwen
for any stipulated amount. and the court
approved the bond offered by McGettigau
and ordered the property turned over to
the receiver &C once. The receiver was or
dered 20 take immediate possession of the
property and to continue the operation OF
the works until the further order of the
court. to which he was granted leave to
apply for Instructions.
The first evidence of the strained condi-
tion of affairs with the company was given
several weeks ago. when they filed in the
recorders Office q mortgage upon their
plant TO secure the payment of three hun
dred six-per-cent. gold coupon bonds for
$1,000 each. The bonds were said to
have been issued for the purpose
cute extensive improvements and addi-
sions to the plant. ana making repairs and
for the purpose OF carrying on the business.
The bonds were disposed of through the
AulcIlC8u 4Auot anu o6NAnk Douk VI IL
rago. and the Bank of Commerce in this
city. The mortgage was signed by c. w.
DePaaw. as president, and w. ii. Coen. as
secretary.
The manager of the works last evening
was not prepared TO give out statement
of the assets and liabilities, but gave the
assurance that the resources OF the concern
were more than ample to meet all
its obligations. 1t Is known that over
ST. 600, OC0 has been invested in the plant
alone. and the works have on hand q large
amount of expensive stock. One thing Is
certain. that the concern has no Indianap-
oils creditors of consequences. and local
banks will not feel the disturbance.
a Talk with Manager Coen.
Mr. William II. Coen. secretary and gen.
ersl manager OF the Premier and Indiana
steel works. talked about the company's
affairs last night with apparent confidence.
at haven't a great deal to say" he began.
-sabout the situation. You know as well as
], perhaps, bow the iron and steel business
has been for some little. time. The recent
sa.Inre of the Pennsylyania Steel COMPANY