St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-03-19
SAID BY MACCOWAN
General Manager Of the Wal
ter A. Wood Harvester
Works
FURNISHES THE REASON
Why a Judgment Was TAKEN
Against the Company IN
Chicago.
THE JUDGMENT IS ILLEGAL
He Says, and Proceedings
Have Been Begun to Set
1t Aside.
TIE JUDGMENT Is ILLEGAL

P. s. Macgowan, the general man.
ager of the Walter A. Wood Har-
vester company, who has just re-
turned from the East, in an inter
view Yesterday afternoon stated
the facts in connection with the
Judgment taken in Chicago against
the company as follows:
The Walter A. Wood Harvester
company, which is engaged in the
manufacture of harvester machines,
is obliged from the nature of its
business to put a large amount OF
money into manufactured product
before it can realize anything from
the machines manufactured, con-
sidera BILE amount Of which money
the company has TO borrow before
it begins to realize from the invest
ment Among other banks that the
company had borrowed money from
was the National Bank Of the Re
public Chicago, III.
This bank had note for $25, 900
which would fall due March q, 1895,
secured by certain collateral. The
cashier Of that bank was in the
city about a week ago, and in a
conversation with the officers of the
company agreed to either extend the
note when it became due, or take
no steps in relation to the same I'M
til after q meeaing of the directors,
which was to take place in the East,
where negotiations We're in progress
hn ici1 Of 70
plete the manufacturing of the prod
uct on hand, as well as to take up
certain notes which some of the
banks were unwilling to extend.
among them the note of the National
Bank OF the Republic Disregarding
this understanding, and before the
note was due, the National Bank of
the Republic wrongfully caused
judgment to be entered upon the
note in Chicago.
WITHOUT ANY NOTICE
to the company that any such move
was contemplated.
II am informed by our attorneys
here, as well as by attorneys in Chi
Sago, that the judgment is illegal and
san be set aside, and the company has
already instituted proceedings in Chi
cage for that purpose. The entry of
that judgment preciuded the POSSIBLE
lty of completing the negotiations for
raising funds in the East, and at the
same time has alarmed all creditors
OF the company to such an extent
that they are now pressing their
claims for immediate payment. The
company, in order to protect itself and
It's creditors. and to preserve its prop
erty, is Obliged to put itself in the
hands of a receiver. The company
owes about 100000, and has assets in
the form of notes, machines and ma
terial to the value Of about s., COG, 900,
over and above it's plant.
THE plant and real estate of the
company in this state is easily worth
another million, so that the company
has assets sufficient to meet all it's
liabilities and 100000 besides; but
owing to the action of the bank in
Chicago, the company, as I said be-
fore, is forced to place itself in the
hands Of receiver to protect it's
property against attachments which
are threatened on obligations now
due, Or to become due in the near
future, which obligations cannot i'm
mediately be met, owing to the inabil-
ity of the company to raise money at
the present time, which inability is
caused by the action of this bank in
Chicago.
AS soon as the receiver is able to
pay up the claims against the COM
pany, the remaining assets will be re-
stored to it, and things will proceed
in their natural course again. The
company is not insolvent in fact. 1t
is simply embarrassed by the need Of
immediate ready cash. Every creditor
Will be paid dollar for dollar and there
will be sufficient left for the company
to again resume it's business in the
ordinary way