The Montgomery advertiser., 1903-10-27
TESTIMONY OF BUSH
HE TELLS or CAR COMPANIES
 CONDITION.
Conduct of the Receivers Designed to Prevent Losses Rather Than to Pile Up Profits.
 He Says.

Chattanooga, Tenn, Oct. 26.-The credit ors of the Southern Car and FtA ndry Company met this morning in the United States Court. President Jacquette did not appear for examination as he was expect ed to. He sent a letter announcing his inability to be present and asked that an examiner be appointed to take his state- ment in New York. As his attendance cannot be forced under the provisions ot the law. this course will probably be pur- sued.
 Receiver Bush of Birmingham was pres ent and made an incomplete verbal re. port on the condition of the company saying the receivers would probably be able to make complete report by De- cember 1. His statement contains some severe reflections upon the management of the company.
 Just prior to adjournment at noon the creditors took a vote as to whether or not the receivers should have the right to con- company, which resulted in authorizing the continued operation provided the re- ceivers thought such a course proper.
 In continuing his testimony. Receiver Bush stated that the books shows, ant the testimony already taken shows, tha. when the credits of defunct concer, were sought and used by the bankrupt corporation 1t had money enough on hand to render such a course unnecessary
 He expressed the opinion that large amounts are due the estate of the bank. rupt from Captain Elliott of Gadsden. and his associates. He said that '1o.0oe which became due from the Illinois Car Company was passed to the credit of the Elliott Car Company when the credit be- longed to the Southern Car and Foundry Company. He further stated that the FL lfott Car Company took possession of iron, etc, which in point of fact belonged to the bankrupt company and doied 1t out in the form of sales. at market prices, when the alleged sales were made.
 He said the Southern Car and Foundry Company had no working capital of con sequence. and its credit was greatly in- jured by irregular business methods. Ac- cording to the statement of Colonel Bush warehouse companies tags were attached to large quantities of material after the receivership of the Southern Car and Foundry Company.
 He reported the results of operations un- der the receivership up to October g a. amounting to $2O0.5l5, The miscellaneouf receipts were reported at s36s, ,053.95 The contracts yet to be completed will amour to $211. .0S0 There remains to be paid for labor and material about $75.0OO. The oper accounts receivable amount to about SSi.'ot. Payments made to receiver, S257, ll1.ss, plus $1,765.76 on account of return insurance premiums. Collected on ac- counts prior to receivershlp. $5S.51452
 Colonel Bush stated that authority ought. in the interest of the estate, be given the receiver to adjust disputed claims. They have on hand, by estimate 4,ioO,Ooo feet of pine and oak lumber, prob- ably worth Slo a thousand in the market Of scrap iron and other material there is about $1S7.000 worth. Miscellaneous mate. rial at three plants. $36S. S.053s5 Total ex. pected from contracts to be completed Sl1,0SO. To be paid out of this for labor and material $75.0oo.
 There is miscellaneous uninoumbered material worth about $4O.000 and ''other stuff worth perhaps $27.5O0. The bank balances. etc.. amount to about S467. .0OO The apparent, though not actual profits Of operations under the receivershi, amount to about $500O0. But 1t was ex. plalned that the operations of the receiv. ership have been and will be more in the way of preventing losses than making actual profits. If the warehouse receipt holders are successful with their claims the S410 V0O reported will be greatly re. duced If not wipe dont.s .., {.