New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-08-03
RECEITERS ASKED FOR.
MAGOWAN'S TWO RUBBER COMPANIES
WRECKED.
LIABILITIES AMOUNT TO NEARLY MILLION
poIJARs-ovERDRAFT OF THE EX-MAYOR
OF TRENTON IT Is SAID. WILL
REACH $500. 900
frv TELEGRAPH TO THE rRrBuNE.l

] OF TRENTON 1T Is SAID. WILL
REACH 100000.
icy TELEGRAPH TO THE TRrBUNE.l
Trenton n j. Aug 2-Vice- Chancellor Bird to-
dav granted two different rules. one directed to
the Trenton Rubber Company and the other TO
the Eastern Rubber Company, commanding the
corporations to show cause before him at the
State House tomorrow why receivers should not
be appointed to take chargr Of the anairs OF each
company Frank A. Mcgowan. ex-Mayor OF TINS
city who disappeared about week ago, is presi-
dent of both concerns and the application Tor re-
celyers to-day was preciptated by his continued
absence and the fact that neither his family nor
any Of the officers Of either company have been
able TO ascertain where he is. Mrs. j. a. Barnes
the handsome wife Of the ex-manager of the East
ern Rubber Company. whose name has been con-
nected with that of the exMaycr and whose hus-
band Mr.. Mcgowan caused 10 be arrested ana
placed under heavy bonds last week on charge
OF attempting to kill him. her husband admitted
to-day rs visiting friends in Chicago. state
Senator William H. Skrm. who is interested with
Mr. Macowan when seen this evening said he
had received telegram from the ex-Mayor. dated
Chicago, in which he promised to return TO Iren-
ton TODAY and meet the creditors OF his two big
rubber mills and his failure to Keep the promise
is What precipitated the applications for receiv-
ers. The disappearance Of this wel-known poll
tician has created a sensation throughout the en-
tire state. and the exposure oi his iinanciai al
fairs In the bills cited in chancery to-day. IL Is
feared. may seriously affect several other manu-
featuring concerns in which Mr.. Mcgowan Is
largely Interested. The first application made to-
day for receiver for the Trenton Rubber
Company. by James Buchanan. representing ia
cob Burnstne Of Detroit and Orlando VI. Harper.
Of New-York City, two Of the creditors Of the
company. who held notes which were allowed t.
60 to protest. The rote hell by Burnstine was for
sl.s9S and that by Harper for $l.i95
The application also sets forth that three other
notes for smaller amounts have gone to protest.
and that still others aggregatng $500 600. are out
standing. and that the company is unable to
meet them as they come due. The application
charges that the company has liabilities of over
$500 900 in ALL outside Of It's capital stock of $780,
OOO and that the company has no funds to meet
the same and is therefore insolvent. Attached to
the application 4 an affidavit OF William Z.
Hayes. treasurer Of the company. who gives the
inventorcd assets OF the company on July ! as
s6O7.97O A. and the liabilities follows: Accounts
payable s92 943 2l bills payable. s2l0s46 SO capital
stock $500 900. total, s503. 7ss 81.
Among the assets is "A large sum Of money rep
resenting Overdrafts and individual obligations
of Mcgowan. Mr. Hayes in his affidavit states
that Mcgowan was one of the largest stockhold-
ers Of tho Trenton Rubber Company. the actual
manager and in times past maintained its credit.
but that recently numerous suits have been be-
gun against him individually In the courts. and
that for this reason the creditors of the Trenton
Rubber Company have become distristful and
refused to renew outstanding notes; that there
are over 500 900 represented in the outstanding
officers OF the company. and that the wages u
the employees become due Tomorrow with no
money to pay them.
The application for receiver for the Eastern
Rubber Company was made by ex-Judee Ian
ming. representing Mahloh X. Mareorum. former
Tax Receiver II Trenton and Orlando VI. Ilar-
per. Of New-York. The application sets out that
a note to Margorum for $500 10 for money loaned
was allowed 10 20 20 protest or July y. and that
the company is indebted TO Harper In the sun Of
$7S l.. The application iso says that three other
notes aggregatlng over $1,000 have been pro-
tested within the last few days and that there
notes outstanding amounting in all TO SllH.-
$50 90. which. with $l4CSH - of accounts payable
and capital stock 4 t202 00J make the liabilities
s46l .Oel So. The Application was supplemented by
affidavit Of william II ScrNs. assistant s'c-
retary Of the Eastern Rubber Company. which
gives the liabilities above and the assets as
s3s2942 Is. including sl05.3os - Of accounts re-
Eastern Rubbc; well as ~ tho Trenton Rub
Der Mcgowan has largely Oycrdrawp his ac-
counts according TO the Dills nled to-day. The
exac, amount of the overdrafts Is not definitely
known. but. II is thought. may reach 100000.
IL is the present intention Of the creditors Of
the two big concerns to continue them In opera
ton under the direction Of the receivers. who
will be aDDOlntcd without opposition from the
harchOld-r3 OF the companies, as an investiga-
ton has established the fact that both are
making money Both mills were shut down last
night and Will remain closed until after the
receivers are ready TO take hold OF affairs. The
mills employ probably 1OO) hands
Senator Skirn said tonight that the other
local concerns In which Mr.. Mcgowan Is inter
estcd will not b. affected by the present pro-
ceedings. as Mr. Mcgowan has had no active
part in the financial management Il them.
The move for receivers for the two companies
together with the recent suits brought against
Of sDecuation as u his financial affairs When
ne sold out tht Empire Pottery l. the Trenton
potter.es syndicate three years ago 1t was cSti-
mated by. close friends that he was worth half
a million dollars. He made general manager
Of th. five potteries in the combination at
salary Of SO 900 year but about "A year ago
the management was taken out OF MS hands
For a long tirle past the air has been full OF all
Itinds of rumors on other than financial lines
and these were given more Zest when Mcgowan
a few week. ago depcsc1 J. a. Barnes from the
general managership Of the Eastern Rubber
COMPANY and followed this up by afterward
having Barnes arrested on n chafse OF attempt
ing to shoot him.
senator Skirrn says that he Is fully protected
Mr. Mcgowan having deposited collateral to
secure him for his Inducements.
ERIE TRATN RUNS OVER 4 DEAD MAN