The Washington herald., 1907-08-15
lIO COMPANY FAILS
pc Concern Itself Applies
for Receivers.
EMES MONEY STRINGENCY
fbiiity to Secure Funds and Ex-
md Outstanding Notes Given as
.eREOn for mbarrassment-Re
eivership Relieved 10 Be Only
'emDorary-Has Several Branches.

Hartford Conn. Aug. 1.-THE Pope
anufacturing Company, one OF the big
est concerns engaged in the manufac-
IRE OF automobiles and bicycles in the
ountry, with headquarters here, was
laced in the hands Of a receiver to-day.
The application for the receivership was
made yesterday in New Jersey, where the
company was incorporated.
The application was made by the COM
pany Itself. because Of inability TO obtain
ready money from the banks The re-
eeiveTs appointed are Albert l. Pope, a
son Of Col A. A Pope, president Of the
company, and A. A Tomblyn, of Newark.
Albert l. Pope IS vice president Of the
company.
The receivership was sought, 1t is said,
because Of financial conditions and as a
protective measure. The local plant. one
OF the largest concerns Of the kind in
America, is said to be running along in
good shape and 10 have plenty of work.
The operations Of the local plant viii be
continued under the receivership. and it
IS believed that the other plants OF the
pany employs about 500 men here.
Has Plant in Maryland.
Separate applications were instituted in
New Jersey. Connecticut, Massachusetts.
and Maryland. In all of these States the
company has one or more factories. Judge
Case. presiding in the local court, ap-
pointed A L. Pope receiver in Connec-
ticut this afternoon.
The company has an authorized cap
itaiization Of 22,500C1o. and besides the
local plant, several other manufactures
is different parts of the country were
controlled by the concern. There were
three factories in Chicago. one in West
field, Mass, and another at HagcTstOWn,
Nd, operated under the supervision of
the companys main office here The
Pope Motor Car Company, a subsidiary
concern. had factories AT Toledo and In
Gianapo,is.
The Pope Manufacturing Company, an
outgrowth Of the old American Bicycle
Company. was developed by Col Pope
almost at the outset Of the motor craze
here The same ideas that resulted in the
establishment OF the giant bicycle concern
Gctuated Col Pope again, and the big
motor enterprise was soon under way.
The company was Incorporated in Febru-
ary, 1893. in New Jersey, for the purpose
Of manufacturing motor cars and bicycles
and their parts and accessories.
Surplus Rapidly Declines.
The outstanding capitalization is repre-
sented by Sl0G0)05) common stock: first
preferred stock, s., ,590. SIC: second pre-
ferred. sS655, 100
The officers Of the company at present
are: Albert A Pope, president; Albert
L. Pope. vice president; C. Z. Walker.
second vice president; George Pope, treas
-Urer, and W. O. Walker. secretary. The
directors are William a. Read. Colgate
HOyt f. 5. Smithers. and George T.
Crane, of New York. a. a. Pope. A !.
Pope, and George Pope OF Hartford,
Conn; Charles Hayden and A. ". Pope.
Of Boston. and Paul Walton. OF Ridge
wood, y. 7.
On July 81, 1896. the company's balance
sheet showed sssets totaliing S23. 7l7.l55.
but after deducung liabilities the surplus
was only S23.SCo, against $23S59 in 1895. and
SJe.y93 in 1904
= representative Of the company made
a statement as follows
THE receivership is due to our inability
TO obtain accommodation from the banks
We have plenty of assets, and are doing
an excellent business. We can say moth
ing more at the moment. as the receiver
ship came so suddenly"
Due to Money Stringency.
The law firm of Joline. Larkin & Rath-
bone was appointed counsel for the re-
ceivers- Albert Rathbone made a state
ment as to the receivership. saying that
the proceeding was the result Of the cur
tailment of credit and the reduction Of
loans on rates. The receivership was the
direct outcome Of the rigid money condi-
tions. Loans were falling due. and the
company was unable to raise funds with
which 10 meet them. The application for
a receiver seemed 70 be the only alter
native that would conserve the rights OF
creditors.
The lawyer said that he believed the
company would continue as going con-
cern, and that the assets Of the company
We're believed TO be worth many times
the amount OF the liabilities. The assets
OF the Pope Manufacturing Company
proper have been placed at nominally
over SL500o0e. with the liabilities at $1,509.-
000 The estimate of total assets is given
as SlC.750000 against liabilities Of s., 100000.
Believe strike Helped.
many DcltNc lndL JNe inineuldte cause
of the receiyership was the strike through
which the company passed last spring
The result was that all of this years cars
which had been ordered last year in ad-
vance remain unsold, purchasers not car
ing 10 wait for their late delivery. This
has tied up about SiOOO.OO0 worth of au-
tOmObileS.
By the appointment Of a receiver the
company will be enabled 10 dispose of
these machines and pay off some $l.6O0.OC0
IN notes, which the company is unable TO
renew. The banks holding these notes.
considering the nature of the automobile
business. the present condition OF the
money market, &c, naturally refused
further accommodations.
ACCUSES THE LEHIGH VALLEY.