New-York tribune., 1902-01-05
CRUDE RUBBER CO. FAILS
". ". LADD, JR., APPOINTED
RECEIVER.
ASSETS PLACED At SS,OGOOO0 AND LA
BILITIES AT $5.O0C,O00-C. II.
FLINT'S STATEMENT
FLINT'S STATEN

AiAND
According to trustworthy reports. its assets are
about SS.OOOO0O, and it's liabilities about
| S3OOnWb. in addition to Inducements and
guarantees Of about S2.OOGOOO
/ The application for the appointment of a re-
/ ceiver was made to Judge I4acombe, OF the
United States Circuit Court. late yesterday al
ternoon by William Nelson Cromwell of the law
firm of Sullivan & Cromwell representing
Flint & Co. who stockholders Of the COM
Pany. Mr.. Cromwell said last night:
| Upon application of Flint & Co. Judge Robert
| ~ frentls OF the Circuit Court of Norfolk. Va,
| to-day appointed William ". Ladd. jr..
| ceiver Of the Crude Rubber Company in that
| jurisdiction, and thereuDOn. in company with
Mr. Hill. of my firm for Flint & Co, and Will
| lam F. Coldbeck for the Crude Rubber Com
pany. ancillary proceedings were fled befo.e
Judge F. Henry LacOmbe. OF the United States
Circuit Court of this district. The application
was considered by Judge LacOmbe in chambers
early in the day and confirmed by him later.
! when Mr. Ladd was appointed receiver for this
| district also The bond Of the receiver in Vir-
| S1nia and New-IOrk was fixed at SJOUOO in
each Jurisdiction.
This action was taken In the interest OF cred
tors and stockholders Of the Crude Rubber
Company. to prevent preferences by attachment
and dismemberment Of the property and assets
The bill Of complaint sets forth the date OF the
Crude Rubber COnpany's organization, the
terms of its charter. and gives it's pres
ent officers as Henry Earle vice president:
and P. de Lacy LiebeTmann. secretary and treas
Urer. II states also that the company has con-
Quoted a large business in South America and
this country.
THE ASSETS AND LIABILITIES
The Crude Rubber Company's present stock
Of rubber amounts to over S2OOOOOO and it Is
chiefly under pledge to bankers The direct La
bilities are stated to be about S3000O00. and
the Endorsement and guarantees about $1,000
GOO of which about $SO0OOO is in respect of the
commercial paper of George Watkinson & Co..
# Philadelphia. the firm which failed recently
for several millions of dollars, the firm thus
being unable to meet its obligations upon the
paper bearing Crude Rubber Endorsements. 1t
is not believed the failure of the Crude Rubber
Company viii disturb the rubber market, as its
stock of rubber is held largely by bankers. who
well secured, and who are under no necessity
to sell. Mr.. Ladd is especially qualined to dis
charge the duties of his important trust, as he
was for many years Deputy Controller OF New
York, and until few days ago Assistant Cor
pOraton Counsel and the legal adviser of the
last Mayor
WITH A CAPITAL OF S1.OOOOOO
The Crude Rubber Company was organized
with an authorized capital Of S1.OO0O00 OF
which 100000 preferred stock and 100000
common Later the common stock was bought
in by the company. leaving only the S6OOOOO
preferred now outstanding Mr.. Cromwell Is
authority for the statement that Flint & Co
hold l 22O of the 5000 shares outstanding
Mr.. Cromwell declined 10 make public the
names of the Crude Rubber Companys credi-
! tors. Nor was he able, he added. to say at this
time what prospects, If any. there were that the
old company would resume business
w F GOLDBECK ON THE CAUSE
William f. ColdbecI, of Lindsay. kremer.
Kalish & Palmer appeared before Judge La
combe as attorney for the Crude Rubber Com
pany and filed an answer 10 the bill Of COM
plaint. admitting all the allegations set forth in
the bill. and consenting to the receivership. Mr.
Goldbeck said last night that the receivership
of rba fail in
the week OF George Watkinson & Co. Of Phila-
delphia. The Crude Rubber Company had in
dorsed the paper Of that firm to the extent Of
$SOOOO0. Watkinson < Co. failed for several
million dollars. and the Crude Rubber Company
thus became liable for the SSOO.OOO. and, being
unable to meet the obligation, went under The
only assets outside of the stock of rubber and
the bills receivable, Mr. GOldbeck added. consist
ed of $1,000 in bank and the office furniture.
and both of these items had been attached by
the Sheriff within the last few days.
Commenting on the failure of George Watkin-
son & Co. Charles R Flint several days ago
said TO a Tribune reporter:
Personally, 1 have never been interested in
tn concern I have held stock in companies
which have done business with it, George Wat
kirson & Co was Il strong concern; they did a
large business, mostly dealing with retailers
Difficulty in collecting many outstanding small
debts probably caused this downfall L see no
reason why the general rubber situation should
he unfs vOrably affected by this failure. Since
q year or two ago margins of profit have been
small, hut the general condition OF the rubber
trade has been good No. the failure of George
WatkinsOn & Co, has no especial significance
Henry Earle. vice-president of the Crude Rub
ber Company. yesterday afternoon issued this
statement:
The Crude Rubber Company is in the hands
OF a receiver IN order 10 avoid the obtaining OF
preferences by attachment or otherwise, and
in order that all interests may be equally pro-
tected. The International Crude Rubber Com
pany succeeds TO the business Of the Crude Rub
Der Company. and has taken the rubber
of the Crude Rubber Company for the purpose
of avoiding any conflict in selling. This secures
10 the banks who have advanced rubber to
the old Crude company the highest price for the
rubber which they have loaned. and preserves
the largest equity for the creditors Of the Crude
Rubber Company.
Soon after 1t became known that the Crude
Rubber Company in difficulties announce
ment made that the Interna tionaI Crude
head Of the firm Of Flint x Co. is president. had
acquired the business Of the insoIvent company
by taking over its stock This was done IL was
said for the purpose Of avoiding any legal tan
giles resulting from the sale of stock
WHAT MIR. FLINT SAYS
Charles r. Flint said yesterday afternoon:
l can speak as president of the International
Crude Rubber Company. 1t has purchased from
the Crude Rubber Company rubber to the value
OF than $2.OOO00O of which the Interna-
tional Crude Rubber Company has sold 81 OOO-
600. This rubber is pledged TO banks as security
Tor loans, and this method or selling the equity
in IL 10 a solvent concern is adopted to prevent
dumping large Quantity OF rubber the mar
ket at one time. The highest price possible will
be obtained for the benefit of the creditor. OF the
Crude Rubber Company.
Mr. hint vyhe cd ha