The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1895-06-13
SECOND EMBARRASSMENT.
The Coast Carriage & Wagon
Company Assigns With
Assets Nearly $780,
600, Liabilities
About $4,000.

ADouL SZo,ooU.
For second tims the plant and other
property of the Coast Carriage and Wagon
Company are in the hands of an assignee.
The deed of assignment was filed early
Friday morning by the conpany's attor-
neys, Messrs, BTyson, Yates & Yates,
since which time operations of the concern
have ceased.
Among those at all familiar with the af-
fairs of the company the assignment WAS
not matter of surprise. At the time of
the suicide of the late William Uhlman, it
was whispered that the company was in
need of cash with which to meet current
affairs of the corporation in which MIR.
Uhlman WAS large stockholder was un-
doubtedly the cause of his rash act. Imms.
diately prior to his death deal was partially
consummated whereby the company was
to secure = large loan, that would have en-
abled it to tide over the present trouble
without difficulty or loss. but unfortunately
the deal fell through, and, unable to secure
an extension of time on bills falling due, an
sssignment was made to avoid threatened
attachment proceedings.
The hSsiness was originally organized
during the summer of 1891 with capital
of SOC. 900 subscribed by local stockholders.
Two years ago on June 4th, it passed into
the hands of an assignee, where it re-
nained until the following March, when it
was sold to G. T. Brace as trustee for 3
syndicate of creditors. Under his manage
ment the concern renamed until last fall t,
whom the present management assumed
control. Since then the present proprie-
tors have added to the already complete
plant thsnecsssary machinery for the man
ufacture of farm wagons. By this increase
to the plant consl derable
outlay was necessary, and up to the time of
closing, no returns from this branch OF
the business had been received, as the wag.
ons were not yet ready to place on the mar
kst. However, prospects were favorable
for the building up of large trade in this
line. which, it was expected by fall, would
yield paying returns on the investmens.
The failure of the concern is no evidence
that the business was either mismanaged or
that it Is not paying industry. The en-
barrassment was due wholly to lack of cash
with which to carry OIL the business. When
the plant was purchased last fall for about
$35, 900, its real value was estimated at
$65, ,0OO. At this latter amount the new
company fixed its capital stock and took the
plant from the purchasers. all of whom be.
came stockholders in the new company.
The purchase included some 81 900 of ac-
counts created under the Brace manage
purchasers were assured of being able to
speedily realize at least $4,000 in cash.
After assuming control of the business,
however, these accounts were found to be
largely mythical, as they represented
amounts due on consignments and not ON
actual sales. Consequently, only very
email portion of the $ll 900 was converta-
Bile into cash; thus reducing their working
capital about $40. 600 from the original ss.
timste. Col. Burgh states that another
matter entering into the company's embar-
rassmens. was it's inability to perfect such
fayorable banking arrangements as the pur-
cbasers were assured of being able to make.
He claims that they were given to under
stand that credit of from 5000 to $2O,-
900 could be arranged with certain bank
in Portland should the same be found nec-
ssssry to the carrying on Of. the business.
When too late, however, it was learned
that this credit existed only in contempla-
tion of mind, and that no financial aid from
that quarter could be obtained.
At tho time Of closing there were 600
wagons on hand in various stages of COM
pletion. These, when completed, would be
worth $50 each So that in this one item
there is a value represented far in excess of
all liabilities. and thsre was every indica.
tion that they would meet with ready sale
The appointment of Mr.. M. N. DAVIS as
assignee was a most fortunate one. He is
an expsrienc ed and practical business man
and will manage the affairs Of tho company
for the best interests of all concerned. The
stockholders of the company are Of the
opinion that the plant should continue in
operation for time, at least, in order that
the work now in various stages of construc
tion may bo completed. This, when placed
on the market, would soon furnish ads-
quate returns to meet all outstanding obi.
cations. OF course, the matter of selling
for cash might interfere somewhat in the
disposal of the output, but at present there
is a strong demand for their work, and it
i. likely that no serious difficulty will be en-
countered in making large sales. The as
signes is yet engaged In completing the in
ventory and until it is finished, it will be