The Birmingham age-herald., 1903-07-22
BILL FOR RECEIVER
 STATES INSOLVENCY
Debts and Assets Set Out in
 the Complaint
ALL MATERIAL MORTGAGED
Southern Car and Foundry Co. Said to Have Attempted Business on ln- adequate capltaI-Plant Would
 Realize Little at Auction.

Gadsden. July a.-(special.) 1.-The best information as to the real status of the Southern Car and Foundry company ob- tainable Is from the complaint filed by the Standard Steel Car company in asking for a receiver.
 The bill of complaint recites the fact of the Southern Car and Foundry company being chartered in New Jersey April 6 1899, with an authorized capital of $780, 900. On May Il. 1896. an amended charter increased this capital stock to $3500, GOO, half in common and half in preferred ac- cumulative per cent stock. Of the stock there is now outstanding $l.5Oo.OOO half in common and half in preferred. It Is shown by the bill of complaint that as soon as the organization was perfected the Southern Car and Foundry company took over the car factories at Gadsden, Memphis and Lenoir and made a pur- chase contract for the Anniston car fac tory. This latter factory has never stood in the name of the Southern Car and Foundry company being merely held un- der it's contract of purchase at the price of s6O0,OO0 upon which $25,0OO in cash was paid at the time the contract was made. Monthly payments of $6450.67 were stipu- lated in the purchase contract. and these payments to date, with the initial pay ment of s25,000. make a total of $100, ,O0O paid on the contract purchase price.
 Cannot Meet Next Payment.
 The bill of complaint further declares that when the next payment falls due, in August, 1903, the Southern Car and Foun- dry company cannot make 1t, as well as other obligations, and because of the former fact the company will lose all moneys which have been paid for the An niston factory and it's equity in the An niston works, wiped out by the condi- tions of the contract of purchase.
 Company Declared lnsoIvent.
 Taking up the question of general in- solvency, the bill declares that the Southern Car and Foundry company has no bonded indebtedness but ehages that the concern has been carrying on its bus mess since organization with practically no working capital.
 That at the time of the organization of the company. in some manner unknown, 1t obtained a working capital of about $15O0O0, which was almost immediate tely expended in the purchase of materials and supplies that the business of the company has been largely cash bus liiScot lHc CdES dHu equipments DelQR sold for cash on delivery; that it has been the custom of the company, in order to continue It's business. to pledge It's sup plies, materials on hand, as collateral security for promissory notes. upon which it has raised money for its oper- ations
 Material Hypothecated.
 The bill goes on: Because of this method the warehouse receipts for these afad 4al- by one or more warehouse companies, al- though the merchandise so pledged had remained upon the premises occupied by the Southern Car and Foundry company, where they remained in the charge and custody of a representative of the ware house company or companies selected and paid by the Southern Car and Foundry company
 The Assets.
 Taking up the assets of the corporation. the bill asserts that the Gadsden, Lenoir and Memphis plants, together with the equity the Anniston plant, Is not greater than s500,000 with accounts and bills re- eeivable of S100.0O0, which amount Is more than offset by the fact of the attempt 10 pledge in advance as security for loans. contract price of cars, the construction of which either has not been begun or has not been completed; that the total value of these materials and supplies doez not exceed $,800,000 In value as pledged under warehouse receipts mentioned above; that the portion of the material anu supplies not covered by these ware mousse receipts Is not practically availaln lnIs Tn the conduct of the business because they cannot be used without the use alec oi parts or the materials which are not available for use by the company unless released from the lien thereon.
 continuing the bi ayers as the plant wi.h tnelr tools and appurtenances are designed solely for the manufacture of cars and car equipments. their vsI',a 3s based on their use for that purpose: that Tn case the plants were attempted to he adapted for other use such attemnta would entail considerable expense and render the plants of much less val1,e as well as the character of the materials not covered by warehouse receipts. so that the could not be readily sold or dia- posed of in the regular markets. The Debts.
 The floating debt of the Southern Car and Foundry company is thus set forth in the bill of complaint:
 Liability of S5O0,O00; on purchase price 1 or the Annitson plant $1S0,O00; on loans optalned on pledge of proceeds that might arise from sale of cars not vet completed, s17s,00O; on company notes un- endorsed, $1oS,0OO; on notes secured by warehouse receipts s130. .000 on unpaid vouchers and indebtedness to the stan dard Steel Car company. s325. 1000; slSO. 900 upon notes made by the Southern Car and oFundry Company and endorsed bv the Standard Steel Car company as well as aecruing accounts, and $400oO July payroll.
 The complaint declares that to meet this indebtedness the Southern Car and Foundry company has no bank balance or cash on hand, no available quick as-