New-York tribune., 1903-07-18
CAR CONCERNS TROUBLE.
RECETVER APPOINTED.
Foundry Company SAID To Be Op-
Grating on Small Sum.
TBY TELEGRAPH TO THE TRIBUNE. ]


Trenton, n. j., July 1.-THE Standard Steel
Car Company of Pennsylvania has obtained
from Judge Andrew Kirkpatrick, of the United
States Circuit Court, an order appointing
Thomas A Gillespie, OF West Orange. receiver
for the Southern Car and Foundry Company,
Incorporated in this State and having au-
thorized capital stock OF So 100000. The South
ern company operates plants at Gadsden and
Admission. Ala. and at Memphis and Lenoir.
Tenn. Counsel for the complainant company
are now their way South, with the view to
obtaining the appointment of ancillary receivers
in Alabama ana Tennessee to prevent, if pos
sible, the attachment of the company's property
in those States. Judge Krkpatricks order car
ries with 1t an injunction restraining the Off
GERS end directors of the Southern company
from continuing the business
Shortly after its organization the Southern
company acquired the Alabama and Tennessee
properties, the plant at Admission being held
under a purchase contract of $500 900. on which
100000 had been paid. Another instament
on the purchase price is about due, and this
with other maturing obligations. it is alleged.
the Southern company will not be able to meet
Under the condition of the purchase 1t is
charged that default in of the monthly
payments will mean the loss to the Southern
company Of its equity in the Admission shops
and the 100000 already expended thereon.
The complainants set forth that the South
ern company has no bonded Indebtedness. but
considerable floating debt, and has been oper-
ating a small working capital, which at the
time of it's organization did not exceed $15000O
This. it is charged, almost Immediately
expended in the purchase of supplies and ma
terials. that 1t has been necessary to carry
on the business almost entirely on a cash basis
immediate payment being demanded on the de-
livery of its prOducts The conditions he hill
says, have forced the company to pledge its
supplies and material on hand as collateral to
secure it's promissory notes, given to raise
money for operating expenses.
According to the bill. the three plants owned
by the Southern company and its equity in the
counts and bills receivable aggregate 100000
but, it is alleged more than offset by the
company's attempting to pledge in advance for
loans the contract price of in course Of
construction or on which work has not yet been
begun.
The floating debt Of the company is figured
approximately, at $2.300,O00. of which $325 900
is claimed to be due on notes to the Standard
Steel Car Company Of Pennsylvania, which in
toned include $5O0,OOO, liability on the pur-
chase price of the Admission shops, and $1S0OOO
on loans obtained through pledges on proceeds
Leonard G. Woods, treasurer Of the Standard
Steel Car Company, states in affidavit that
Treasurer q. G. Brockway of the Southern
company Informed him, on the refusal of the
Standard company to make further loans that
unless the Southern company got $150000 by
July 10. he would tell the warehouse COM
pantes to take possession of such property as
was covered by their receipts. To Mr.. Woods
was shown the following telegram from Mr.
Brockway to William Q. Jacquette, of Newark,
president of the Southern company:
I'VE go to protest to-day notes and drafts
which cannot meet. Cannot provide funds for
assistant treasurers per their acquisitions for
advances and payrolls this week I have heard
nothing from Woods, and the whole Northern
contingent seems to be absolutely silent regard
ing the situation. Sykes. representing the
warehouse is here to-day
The Standard company holds $T65OO0 of
stock in the Southern company.