The evening world. [volume] (New York, N.Y.) 1887-1931, 1894-07-16
COMPOSED OF 10 COMPANIES.
Organized in June, 1892, with
a Share Capital of Eight
Million Dollars.
GILBERT N. SPEIR, jR., REFEREE.
Ordered to Show Cause, at Their
Own Request, Why the Trust
<. Should Not Be 0iss oIved.

Judge Gildersleeve, OF the Superior
Court to-day appointed Arthur c..
Palmer and Miles NJ. O'Brien receivers
of the Umbrella Company. which is com
posed Of ten companies Of umbrella
manufacturers.
Gilbert NJ. Speir. jr., is appointed ref
cree In the proceeding, and the companies
are required to show cause. on their own
application, why the combination should
not be dissolved.
The trust when organized was com
posed of the following firms: Follmer.
Clogg & Co., New York and Philadelphia
Rose Bros & Hartman, Lancaster. Pa.
Excelsior Manufacturing Co., New York
and Boston; Wright Bros. & Co., New
York and Philadelphia: William II. Rich,
New York; Ellis Knapp & Co. New
York; Alva Hall & Co.. New York
White, Howard & Major, New York
Brown Matzenbacker, New York, and
Heiter, Glenn & Cawley. New York.
Last May Messrs Glenn and Cawley.
OF the last-named firm. withdrew from
the firm and the Trust. and formed the
nrm of Glenn, Cawley & Co. Mr.. Heiter
remained with the Trust.
Mr.. Cawley. of Glenn. Cawley & Co..
was seen by an Evening World" re-
porter this afternoon.
II am not at all surprised to hear that
Z receiver has been appointed" said Mr..
Cawley. ''This firm Is now in no way
connected with the Trust. We got out
last May.
~ do not think there Is the least
doubt but that the Trust is entirely SOL
vent. The going into the hands OF re-
.csivefs Is but the inevitable result of the
bad business which the Company has
been doing
1--WE foresaw that and Withdrew
Samuel Untermyer OF the firm OF Gug-
genheimer. Untermyer e. Marshall the
counsel for the Company. was asked as
to the condition Of the Company. ant
the causes leading to the appointment
OF receivers. Mr.. Untermyer said:
The Company was organized in June
lSsz, under the laws of the State of New
York, with an authorized share capita
Of 100000. and with power to issue
S20Oo.O0o of debenture stock. 1t wa!
formed for the purpose of acquiring anc
consolidating into one Company the lead
ing manufacturers OF umbrellas In tn,
United States. The Company succeeded
In acquiring the factories of eleven lead
ing concerns, representing about 60 pc
cent of the domestic output. In pay
ment for the assets of these plants |
issued upward of 100000 debentur,
stock and paid about s4,5oo.OOO of Its com
mon stock for the good will of thes
businesses. The balance of the deben
ture stock and common stock is still un
issued.
THE manufacturers found. as the re
suit Of two years of very disastrous ex
,perience, that the attempt to consolidate
Q business OF this kind is failure
THE element of individual effort, stimu
lated by personal interest, which is nee
Ossary to the success of such a business
u lost, and as the result the manufac
turers outside Of the Company have ha
the best OF the fight. The Board OF Di
rectors was made up of the leaders o
the various concerns. and there has beef
some difference between the members o
the Board.
1.-THE Company was launched at a YER
unfortunate period, and the hard time
Of the past year have had a very grea
deal to do with the result. None of tn
stock Is held by parties outside of thos
to whom 1t was originally issued. 1t wa
all placed in trust, SO that none of
could be sold. But very small fractio
Of the 81, GOV, 900 of debenture stock Is hel
outside the Original Fehaers OF the Com
pAny. The debts of the company do no
exceed s., 900. including the l,0O9, VI
.Sf debenture stock.
~ "It is the opinion OF most OF tn
debenture stockholders that the claim
Of the general creditors should have
preference over this 81, 10000 of ueber
ture STOCK. ana III order that thef