New-York tribune., 1901-12-30
ASPHALT TRUSTS LOSSES.
SLUMPS IN STOCK, TIED UP PAVING
CONTRACTS AND PITCH LAKE WAR
LEAD TO RECEIvERSHIP.

Street that the National Asphalt Company and
the Asphalt Company of America, generally
known the Asphalt Trust. which Satur-
day passed into the hands of receivers. might
not be able to meet it's rapidly accruing fixed
charges. Several days ago it became evident
that the trust would experience difficulty In
meeting January 1 interest charges amount
ing to S5OO.0OO Realizing. 1T is said that a,
default in the payment of this sum was newt
able, representatives of majority of the bond
holders applied for the appointment OF receivers,
which application was granted.
The receivers named were John F. Shanley.
of Newark; Jo1n NJ Mack of Philadel-
phia, and Henry TatneIl president of the
Franklin Savings Institution of Philadelphia
The investigating committee formed by
Thomas De Witt Cuyler some weeks ago is
friendly to the Mack-widener-E EIkins interests
in Philadelphia in control of the two concerns
This committee controls S2O.0OO.OOO of the
S300000O0 bonds issued by the Asphalt Com
pany Of America. and a majority of all the
obligations issued by the National Asphalt Com
pany through similar committee. in whichr
William F. Harrity was leading factor
For many months asphalt stock has been
steadily depreCiating. have asphalt bonds.
On Saturday Asphalt Company of America
per cent bonds sold at 33. one-third of their par
value. which was the lowest price they ever
brought. About two years ago they sold at 81
To these repeated slumps it is thought may be-
traced in part the of the difficulty in which
the trust finds itself.
Again it is said that the crash is due largely
to the loss of large paving contracts in various
cities in the last year by it's subsidiary COM
panies. Asphalt contracts in this city to the
amount of 100000 are now tied up by court
injunctiOns. COntrOller-elect GrOut and Presi-
dent-elect Cantor of Manhattan Borough have
avoided opportunity TO manifest their inten--
tiOn TO afford independent asphalt companies an
opportunity TO undermine the asphalt monopoly
here. But by far the most important factor IN
the causes leading up TO the difficulty in which
the trust finds itself has been the activity dis
played by Independent asphalt companies a
result of the expensive war it has been waging
in Venezuela against the Warner Quinlan COM
pany for the possession of the pitch lake there
known La Felicidad. a deposit that has no
equal in value in the world.
This contest was carried on with such bitter,
ness that the rivals employed armed forces to
back up their contentious. if necessary. In 1SSS
Ambrose Howard Garner. managing director OF
the New-York and Bermudez Asphalt Company.
a subsidiary concern of the trust, discovered the
pitch lake. which he found to be 120O acres
in extent. Buildings were constructed. roads
were laid, and a river was opened to navigation.
Mr.. Garner told Tribune reporter that in 1891
a number of VenezueIans took a portion
OF the company's property. and disposed of their
title to the Warner-Quinlan company. Con-
tinued instructions in Venezuela prevented the,
New-York company from cOntesting what it's
representative believed to have been unwar-'
ranted seizure. sanctioned by the Venezuelan
Government. Early in the present year the.
rival asphalt concerns had a trial Of their casa
in Venezuelan courts.
The controversy became so acute that last De-
he Of rrIl ISL a S.
patch to the home Office asking that warship;
be sent to Venezuela TO protect its interests,
there. To this request the United States Gov,
ernment apparently paid no attention. There~
upon the two concerns fought once more throughs
the Venezuelan courts. A few days ago the,
Warner-Q -Quinian company. which initiated the
second legal battle. obtained decree from the
Court at Cumano awarding to them possessioni
of the asphalt lake.
Last night General Francis V. Greene, presi-,
dent of the National Asphalt Company and tha,
Asphalt Company of America, gave out the fol-
lowing statement:
The National Asphalt Company and the AsphaIs
COMPANIES not engaged in having % pavements Or
selling asphalt, but solely in holding the stocks on
paid and distributing them 10 their security hold
Grating companies during the present year, spite
of the most active competition and International
yet they not sufficiently large to meet in fulA
IN order to preserve the property intact the pro-
tectve committees. who now represent the majOr-j
ity of the securities of both companies decided that
suits should be brought and the appointment
opposition was made The Land Title and
Trust Company Of Philadelphia. trustees for the
security Of the 100000 issue OF gold certificates
of the Asphalt Company of America. and the COM
and A w. Sewal, representing more than MAJ
jority of the So 100000 issue of gold certificates and
of the preferred and common stocks of the National
Asphalt Company, on saturday. December 3. fled
bills of complaint in the United States Circuit Coure
of the District of New-Jersey. and Judge Andrew
Kirkpatrick sitting circuit judge. appointed aSa
John NJ. Mack and John f. Stanley. Mr.. Tatnall Is
the president Of the Franklin National Bank OF
Philadelphia Mr.. Mack is the vce-president OF
both companies, and thoroughly experienced In tha
resident of Newark and well known contractorl
and business Mr. Tatnall and Mr. Mack on
the day qualified by fling their bonds. and
have taken possession OF the Offices and assets OF
the companies.
This proceeding applies only the above named
proprietary companies, and does not IN any way
the business OF the subsidiary companies. such as
the Barber Asphalt Paving Company, the New
Trinidad Lake Asphalt Company, the New-Yorlc,
and Bermudez Company, the ellison Asphaltun,
gagged In their usual line OF business have made
large earnings during the current year.
The committees representing large majority OF
for some time had an independent auditor engaged
upon the work Of examining the accounts OF these
companies and OF the subsidiary companies and
submitted the committees IL win be possible
for them 10 consider and formulate a plan for
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