The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1895-08-02
RECEIVER FOR MA
GOHAN.
Special TO The .Jerseu Citu Ncara.

TRENTON. Aug. 2 1895.-The aabsenee
of Frank A. Mcgowan, President and
General Manager of the Trenton Rubber
Company. on application was filed in the
court of Chancery today for the appoint
ment of a receiver for the concern. Ma
gowan is in Chicago and has telegraphed
that he will be back in Trenton in the
course of day or two. Counsellor James
buchanan, representing Jacob Burnstine
of New York, filed the application. A
rule to show cause why a receiver should
not be appointed was granted by Vice
Chancellor Bird, and made returnable
before him in this city at ten o'clock
tomorrow morningl The bill of the
plaintiffs allege that note for $1.998.
given by Mcgowan to Burnstine had
gone to protest. Other papers for small
er sums to divers other persons had been
recently dishonored. The Trenton Rub
her Company. the bin further alleges,
has promissory notes outstanding to the
amount of 100000 and accounts payable
amounting to 100000 more. The plain
tiffs hold that the company is insolvent
and that the prompt appointment of
receiver is necessary to properly con-
serve the best interests of all the credi-
tors of the company
Attached to the bill of complaint is an
affidavit made by William p. Hayes, the
confidential secretary of Mr.. Mcgowan.
He gives the assets of the company as
amounting to $607, 900, which includes
doubtful accounts agregating 1928, 900.
The liabilities amount to $500, 1881. The
capital stock of the company is 100000;
nearly all of which has been held by
Mcgowan until recently, when it is said
he turned a considerable portion of it
over to large creditors and hackers in
this city and elsewhere. The affidavit
of Hayes goes on to say that recently
numerous suits were brought against
Mcgowan and creditors becoming dis
trustful of his ability to meet his obi
cations, refused to renew maturing
paper for him. The holders of most of
the company's outstanding notes are un-
known except to Mcgowan himself.
Since the institution of the suits in
question. Mcgowan has taken no active
part in the management of the company
and the affidavit concludes with the
statement that there is no money on
hand now with which to pay wages
amounting to several thousand dollars
and which are due tomorrow. It IS
~
made today or tomorrow for the ap-
pointment of a receiver for the Eastern
Rubber Company, of which Mcgowan is
also the head.
Mcgowan is likewise interested heavily
in the Trenton Oil Cloth Company and
likewise has an interest in the Trenton
Watch Company. Recently while living
apart from his wife, his name was un-
connected with that of an
other woman. who, it is reported, is also
in Chicago at the present time.
Mcgowan, until the last year or two.
was phenominally successful in business.
He was twice Mayor of Trenton and
six months ago announced himself as a
candidate for Governor of New Jersey.
For several years he was the Republi-
can leader in local politics. He made
a great deal of money in pottery, and
when Wall street syndicate and others
bought the five largest potteries in the
city, two or three years ago and formed
the trust known as the Trenton Potter
les Company. he was made General
Manager.
He relinquished the position in a few
however. retaining considerable
stock interest in the trust.