The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1902-01-06
WAS TOO ELASTIC
As a Result Big Crude Rub
Der Trust is FOrded Into
Hands OF Receiver

NEW YORK JAN. 4-'ihe United states
Crude Rubber Company has gone into
the hands OF receivers with liabilities OF
five million dollars They have resources
TO the extent OF three million dollars.
The application for a receiver for the
Crude Rubber Company was made to
Judge lacombe Of the United States cir
cult court by attorney William Nelson
Cromwell and the judge appointed VIM.
w. Ladd Jr
Mr. Cromwell said tor'ght: upon op-
plication 81 Charles r. Flint and Gem
pany. Judge Robert r. Prentis, OF the
circuit court Of Norfolk, Va, today APP
pointed VIM. w. Ladd, Jr as receiver Of
the Crude Rubber Company in tina tjuris-
dlction and thereupon, in company with
Mr.. HIill Of my firm, for Charles r. Flint
and Company, Ancillary proceedings were
filed befcrA lndsa Lacombe Of the Unit
ed States circuit court OF this district
The application was considered by Judge
Bacombe in chambers early In the day
and confirmed by him later, when Mr..
Ladd appointed him receiver for this dis
trict also The b0nd of the receiver IN
Yir, ,inia and New York wa.s fixed ~ 70.
900 IN each Jurisdiction.
This action was taken In i-ercst
Of creditors and stockholders - Crude
Rubber Company, to prevent pl ference
by attachment ana dismemberment OF the
property and assets. The bill Of compajnt
sets forth the date OF the Crude Rubber
Company's organization the terms Of its
charter and gives tis present officers as
Henry Earle, vioe-president, and p. De
Lacy Liebermann, secretar yand treasur-
g. II states lso tht the company has
conducted lage business In South Amer
ic and in this country.
According TO Mr. Cromwell the Crude
Rubber Company has now a stock Of rub
Der and bills receivable nexcess OF three
million dollars Neacy all Of which is
pedged to bankers Mr. Cromwell said al
50 toat q companys direct liabilities are
about ttree millions dollars andded to
fl.,s.a ..ts.a
footing up anothe rtwo millions dollors.
OF this latter account about eight hun
dred thousand dollars is Of the paper of
George WatlSinson and Co. Of philadel-
phia, whoes failure was announced a few
days ago.
When organized and Incorporated in
1897 under the laws OF Virginia the Crude
Rubber Company had an authorized cap
italization Of one million dollars Of which
S6Q0,OO9 was In preferred shares and $780,
900 in common shares. Later the common
stock was bought in by the company. So
that at this time there Is only the $500 00d
of preferred stock outstanding Mr. Crom-
well is authority fOr the statement that
Flint and Company hold one thousand
two hundred Of the six thousand shares
now outstanding. Their par value Is one
hundred thousand dollars.
Soon after II became known that the
crude Rubber Company was in difficult
ties, announcement was made at the In
.ternational Crude Rubber Company in
which Charles r. Flint is one of the lead
ing spirits had acquired the business OF
the insolvent company by taking over its
stock. This was done. IL Is said, for the
purpose of avoiding any legal entangie-
ments resulting from the sale Of stock
According to Me-. Flint, the United
states Rubber Company the Rubber
Goods Company and several allied corpor-
ations are not involved in the troubles OF
the Crude Rubber company. Mr. Flint al
50 wished It known that beyCud .be stock
holdings of Charles r.. Flint and Com
many, the firm was not concerned I'm the
Crude Rubber Company's affairs.
The primary cause Of the Crude Rub
Der Companys embarrassment is be-
heved to be TO the adverse weathe, CON
ditiOns Of the pats two years In tho
anguage Of the trade. the winters or 1905
and 1901 were too "cpen' TO give much
OF boom TO rubber boots and shoes and
other rubber wearing apparel Because OF
thees conditions the price OF raw rubber
mas declined almost thirty cents pef
pound, so Mr. Flint said today The new
schedule OF prices issued by the United
States Rubber Company Under date of
January i show san advance In the dis
count rates OF jobbers