The Birmingham age-herald., 1903-07-17
CREDITORS EEL THAT
 COMPANY lS SOLVENT
First National Bank, Which. Holds Note for $2o,ooo, to be Safe Has Attachment Levied on the
 Plant at Gadsden.

The Southern Car and Foundry com pany, with general offices in Birmingham, has been put in the hands of receiver.
 The company was chartered in New Jersey, and on Wednesday last T. A. Gil- lespie of New York was appointed to the receivership by a judge In Jersey City
 W. O. Jacquette president of the South ern Car and Foundry company, has not been in Birmingham since the middle or June w. G. Broadway, vice president and treasurer, and M. F. Duncan, gen. eral manager, are here. When reporter called at the company's offices in the Fox building yesterday he found MT. Broadway and MT. Duncan together but neither of them was disposed to talk for publication.
 Tn reply to the question, ''1s 1t true that a receiver has been appointed for the Southern Car and Foundry company" Mir Duncan, speaking for himself and Mir Broadway, said: we will neither af- firm nor deny. All we have to say Is, representatives of the company will reach here from the east Saturday and will be in the office on Monday Further than  that we can make no statement"
 Several Big Plants.
 The company's plants are distributed as follows: Annlston and Gadsden in Ala bama. and Memphis and Lenoir. in Ten- nessee
 The Southern Car and Foundry com pany is capitalized at si,5oO,OOo, one-half of the stock being preferred and the other half common. There is no bonded debt. but like most large and active concerns the company has a floating debt. The First National bank of this city holds the company's note for $2O.0oO, which was se- cured by collateral. Day before yester- day the bank got an inkling of the re- ceivership and to make the institution doubly secure an officer of the bank went to Gadsden and attached the plant there. It Is understood other attachments were being prepared yesterday afternoon.
 The affairs of the company were discuss ed yesterday by Birmingham creditors and corporations, officials in general but details were meagre and about the only definite information which had reached this city was that receiver had been appointed. It is believed. however, that the Southern Car and Foundry company Is perfectly solvent and that the receiver ship grows out of a disagreement between the majority and minority stockholders.
 Last fall the Standard Steel Car com pany of Pittsburg acquired 51 per cent of the stock of the Southern Car and Foun- dry. Captain J. M. Elliott of Gadsden. who had been president of the latter com pany for many years sold the bulk of his stock and retired from his executive posi- tion.
 Gets Large Price for His Stock.
 It was understood at the time that Captain Elliott got a large price for his interest. Captain Elliott was made chair man of the board, but this position was chiefly honorary. J. M. Hansen of Pitts burg, president of the Standard. suc- ceeded to the presidency of the South ern, but some weeks ago he resigned in order to give his whole time to the Stand ard. MT. Jacquette was then elected pres ident.
 It is said that the majority and minority interests have clashed for some time; that the majority stockholders were put ting up money while the minority people were not, or at least not as fast as the majority stockholders, and that the dis agreement between the two parties be- came so sharp as to precipitate the receiv- ership climax.
 Creditors Are Safe.
 A creditor said last night: "The South ern Car and Foundry company owes me a few thousand dollars for which l hold it's note 1 feel entirely safe. am satis- fled that the receivership grows out of a squabble among the stockholders and that the receiver will take care of the com pany's obligations"
 It Is. said that the Southern Car and Foundry owed the Tennessee Coal, Iron and Railroad company as much as Ss0,000 three months ago, but that 1t Is not in debt to that company one dollar now.
 The Southern Car and Foundry company has been in existence about eighteen years and in the past few years has executed mang large orders for leading railway system. Its different plants were worked to their full capacity up to last spring, but during the past ninety days its busi-