The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-08-15
POPE CO. WILL
SOON BE ON
ITS FEET
Says Head Of Big Corpora
ton, and ReceiverShip
Will Be Only Temporary.

The bonds ordered by vice-Chancel-
lor Howell, to be furnished by Albert
l.. Pope n Egbert j. Tamblyn, as
receivers for the Pope Manufacturing
Company and the Pope Motor Car
Company, respectively. amounting to
$3.50, 900 and $15O.0OO each. were justified
yesterday before former Judge Freder-
lex F. Guild, the master appointed by
the court. The bonds were furnished
by the National Surety Company.
The formal complainant to the
application made Tuesday noon before
vice-C Chancellor Howell was the Mac
Manus-Kelley Company, of Toledo, o,
a creditor of both defendant corpora
lions. The Mechanically Company
handled the advertising business of the
two corporations.
Sherrerd Depue. of Lindabury, Dupue
& F'aulks. appeared as counsel and
made the application before the court.
Auxiliary receivers will be appointed
today in Maryland, Indiana and Illi-
nois. 1t is probable that Colonel Pope
will be selected in each State. as he
was yesterday in Massachusetts,, Ohio
and both Federal jurisdictions of New
York State.
1t is expected, according to authori-
tative statements made yesterday, that
the receivership will be a Temporary
one. and that the business of the Pope
companies will be put on a firm basis
again. The actual assets of the con-
Germ are stated as $7,724,217.42 in the
receivership petition, and its liabilities
at s1,459, S54.4O. Nominally, there are
1923. SIS, 23o.1S of assets.
Colonel Pope, who is at his summer
home in Cohasset. Mass, said yester-
day that the officials of the Pope Man
ufacturing Company were sick and
tired with the way the banks treated
them in view of the fact that the COM
pany has assets to the amount OF many
millions over and above liabilities. he
also said all the company owed was
81 1000, 900, and hat the banks VIII get
what is due them when the
gets ready to pay them.
The company's statement for June 81
last showed a deficit of $345,Sf3.f4, put
these figures are made up on the pasis
of a $23, 900, 900 capitalization, which ~
cludes a goodly part of the water that
was injected into the old American
Bicycle Company on its ana
hence the actual statement is not the
one on which the receivership petition
is primarily based.
Two causes are assigned for the present
tronbles of the Pope Manufacturing Com
pany. One is a strike that tied up the
Toledo factory of the Pope Motor oar
company for six months and put the lVi
deliveries so far behind that some lSo cars
were left on the company's hands through
cahcelled orders, and the other Is lne
strir gency In the money market, which
prevented the company from renewing
loans that matured July /, and from rails
ing the amount of cash necessary to ham
die business looking to the deliveries OF
the 1908 season. In the last few weeks
strenuous efforts have been made to tide
over the crisis. but without effect, and It
was finally determined that a receiver
ship was the only way Of working the
eituation out.
The detailed statement Ut liabilities cou-
tanned in the receivership petition makes
this showing:
Notes ..................-...... a.oOs,5 42 80
Accounts payable .............". 430,2l4 %
Accrued pay s............... zl,U5i 10
The Pope Manufacturing Company was
brought to its present state by the i'm
pairment of its borrowing capacity to the
extent OF 100000, and The Pope Motor
Car Company, whose capital Is 81 LOCO. 900,
has suffered an impairment of about $780,
900 in its borrowing capacity, these dis
abilities coming on top of the inability
to renew maturing notes. 1t was frankly
declared that various automobile interests,
operating on the basis of a widely ex-
tended credit. have been the first to have
trouble in obtaining accommodations at
the banks for this very reason. and that
funds were not now In sight of the Pope
Company sufficient to nance ITS 1908 out
put even with such relief from the pres
sure of creditors as the receivership might
bring.
The various properties are widely dis
tributed, the receivership petition showing
1921 ,39S.04 Of assets in Connecticut, con-
sisting Of plants at Hartford and Thomp-
~sonville, supplies and accounts; $745, 351 of
assets in the State Of Maryland, consisting
of a plant at Hagerstown and its supplies;
$1,133,59O.S9 OF assets In the Westield,
Mass, plant; a SO, 800 factory at SYRIA
cuse. leased to third parties; three plants
valued at $457, 80 in Illinois, and a wide
variety OF assets nominally existing in
New Jersey, which include $1,000. 900 par
value Of the Pope Motor Car Company
stock, valued at 1871, 3S1.O4.
In the old American Bicycle Company
eAS @UPV AhoAuAoSNufiu6 SOuipdhy PihLilS
and the plants of the American Cycle
Company were about the only things OF
much value. TIL Pope concern. long
manufacturers of the Columbia bicycle,
has been considered big money-makers,
and Colonel A. A. Pope, its founder and
leading spirit, was q national figure both
In affairs Of the bicycling world and In
the movement for good roads. But wa-
ter was pumped into the American BIZ
cycle Company ad lib. by the promoters,
who got up a combination and induced
Colonel Pope to come in.
There were $9,150,000 bonds and 50, 294,-
800 preferred stock and SIT, 701, 500 COM
mon stock issued, and when it came to
a showdown after the receivership the
plants appeared in the aggregate to be
worth considerably less than the successor
plants are worth today.
RAILROAD EARNINGS.
Gulf and Ship Island. fourth week In
July, $64.417, increase $2.679. Month, $780,