Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-11
STEEL PLANT IN BANKRUPTCY
MILLIKEN BROS LIABILITIES
So, SOC, 900 AND ASSETS So, 600, 900.
Staten Island Establishment
an Undertaking Too Big to Be
Handled by Company.

NEW YORK, June 11.-With liabilities Of
s6.5O0.O COO and assets estimated at S, eco 900,
Milliken Bros. (incorporated), contractors
of the Pennsylvania railroad terminal steel
work, and one OF the largest concerns in
the country engaged both IN the manu-
facture of structural steel and iron and in
contracts for structural steel construction,
allowed themselves yesterday to be put into
bankruptcy on the petition of four credit
ors. The petition was filed at pm. in the
United States court here by Mcdonald &
BOstwick of Is William street, attorneys
for these creditors: Niles Bement- Pond
Company, 81 62S; Snyder & Black, s4O3;
John a. Roeblings Sons Company, 81 $50
and Robert W. Hunt & Co., 1923. The cor
poration admitted in writing its inability to
pay its debts and Its willingness to be ad-
judged bankrupt. OF the estimated liabili-
ties of s6,5O0OUO S3,5OO,OOO are unsecured
and S,OOO,OOO are bonds secured by mort
gage on the concerns plant at Mariners
Harbor, Staten Island.
William Nelson Cromwell is counsel for
the company.
Interview With Mr.. Cromwell.
Mr.. Cromwell said the business consists
OF two distinct branches, one the construc-
ton and erection of bridges, &c. and the
other the manufacture Of open hearth steel
and the rolling of the same into billets.
blooms, slabs or structural shapes suita-
BILE for use in the construction of bridges
and other structural work
Inc bridge department had been carried
on successfully and very profitably for a
number of years and this led the connanv
TO the construction of the open hearth stool
plant The plant, comprising 100 acres and
a modern and completely equipped bridge
pant and open hearth steel plant, is com
pleted and in full operation The comnanv
contracts
and buildings the world over, it has about
3No 10 5000 men in its EMPLOYMENT it's
weekly payroll is about $4,000, its business
under construction is about s. 600 600 and
is of profitable character
Inc estimates for the completion of this
steel plant were, as usual, exceeded in fact
and exhausted the working capital This
was in part supplied by the Individual re-
sources of its principal stockhoIderS bnt
stlI remained inadequate. The Liabilities
are about S6,5OO,0OO of which $3,OOOOOO is
represented by first mortgage bonds
Inc capital stock is 5000. 600 of which
$1VooOo is per cent cumulative pre-
ferred and $2,5OO,00O is common stock. The
assets comprise a plant which, with the
real estate, machinery and plant, is valued
at SI,2oOOOO, and merchandise and supplies
on hand of the value of about s7:n 600
more About three-quarters of a million
IS invested In construction under outstand-
Ing contracts.
Under Court Jurisdiction.
1t was manifest to all concerned that the
Wlsest course was to conserve this vast
business by placing the same under the
jurisdiction of the court without preference
and with perfect equality to all, and there
by prevent discrimination and ruinous
sacrifice. Application was therefore made
yesterday to Judge Holt of the United
State district court for the appointment
OF receivers. The matter was argued at
the Bar Association last night before Judge
Holt who has taken the subject under
Mr.. Cromwell further stated that while it
had been customary with the bar to avoid
the bankruptcy court, he expected to show
IN this case that the machinery of the
bankruptcy court and the administration of
the federal judiciary would prove the wis
dom of the law and encourage recourse to
1t in the preservation and reconstruction of
corporate affairs.
He also stated that he had in contem-
platlon plan for the speedy reorganization
OF the company and intended to submit to
the creditors at an early date, and as soon
as he had completed Independent investiga-
the meantime he counseled patience and
forbearance on the part of creditors as
being in their best interests.
The failure, according to one of the law
yers interested, was brought about through
going in for the big plant of the company
on Staten Island, which is not anywhere
near completed. 1t was thought a great
scheme to enlarge the Staten Island plant
so that the firm could become a manufac-
turer of steel in addition to manufacturing
steel.