The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1907-11-08
NORTH POWMAL IS
HIT BY MILL
TROUBLE
Receiver Appointed For the
Mill There
COULD NOT SECURE MONEY
Difficulty Of the Arnold Print Works
Was Also Factor In the PownaI
COULD NOT SECURE MONEY

Burlington Nov. IA bill of com.
plant has been brought in the Cir
cult court of the United States for the
district OF Vermnot by the North Ad-
ans, Mass, National bank against the
North Pownal Manufacturing company
and Judge James l.. Martin was ap-
pointed as receiver of the defendant
company, Henry e. Warner of Lincoln
Mass, and Addison E. Cudworth of
Londonderry.
The North Pownal Manufacturing
company was Incorporated under the
laws Of Vermont in 1904 for the man.
ufacture and sale of cotton goods
with a capital stock of 100000 divid-
ed into shares of the par value of 500
each, all OF one class and kind, and
called common stock. This corpora.
ton Is indebted to the orator for a
promissory note of $4,000, now over
due, and the complaint further alleg-
ed that the defendant corporation
owes other persons, banks and cor
porations an amount of about ST.
100000, of which sum approximately
81 100000 is represented by promis.
sorry notes and obligations to banks
upon which the corporation is liable
as maker or endorser, and the bal
ance is represented by Indebtedness
Tor merchandise and supplies; that of
said promissory notes, approximately
! 100000 natures within the next GO
days, 100000 within the next 30 DAYS
and 100000 within the next "a hours
| (from Nov. g. that the corporation
| has ON hand no adequate funds to
| pay It's Indebtedness and to meet its
! obilsations maturing as above set
| forth, or TO continue its business, or
| to perform its contracts
The financial condition of the cor.
| poration is attributed to the present
strlngency in the money market and
the lack OF currency in banks and the
| financial condition of the Arnold Print
| works. The complaint continues that
the defendant corporation is posses
sed OF assets and property which has
conservative valuation amounting
TO Sl.SO0,000, consisting of real estate,
water power, machinery, buildings.
and plant, worth approximately $500.
uV0; notes and accounts receivable
from the Arnold Print works. and
! others amounting to Sl,400.000. mer-
chandise and mill supplies, amounting
10 approximately 100000 or more.
| The corporation at North Pownal
employees 400 men, with running ex.
penses of $4,000 per month. The
banks supplying the funds to this
company, owing to the stringency in
the money market, have not only in.
formed the officers of the comnanv
that future funds cannot be supplied
as heretofore, but in some instances
nave called for payment of the said
notes insisting upon the same being
made and in event of failure to do so
threatening collection by legal pro-
cess
owing to the stringency in the
money market, the Arnold Print
works, a corporation with extensive
plants and factories in North Adams.
Mass, and employing about $500 men
being entirely solvent and having ne.
sets OF Sl5,000,000 with surplus of
SoOO, 200 above debts, was unabla TO
OBTAIN ready money and In corse.
quence OF conditions in New York.
receiver was appointed over the con.
Germ by decree of the Circuit court of
the United States for the district of
massachusetts,. The appointment was
made tuesday the receiver being Mr..
warner, who with Mr.. Cudworth is
one or the receivers of the corporation
at North Pownal.
II is claimed that the North Pownal
company manufactures its goods for
the Arnold Print Works and that said
works are largely indebted to the
North Pownal company for such goods
no payment for which can now be oh.
tanned; that unless a receiver were
appointed forthwith there would be
danger that the firms assets would he
attached and thereby wholly DESTROYED
ana wasted so that the direct creditors
would not receive the entire amount
of their Indebtedness.