The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-12-10
Electric Vehicle Company
Finds Temporary Shelter
in the Courts.
TWENTY MILLION CAPITAL
DOmiciled in Jersey City, but Its
Factory Is in Hartford--Appli.
cation Made In Friendly
Spirit by One of Creditors
Through Newark Counsel.

| In order to tide over temporary finan-
cial difficulties a friendly suit was
made In the United States Court in
Trenton today for a receivership for
the Electric Vehicle Company, New
Jersey corporation doing business in
Hartford. Conn. Judge Ross appointed
| Halsey M. Barrett, of Newark and
Henry w. Nuckols receivers. fixing
their bond at 100000, which was fur
nished by the American Surety Com
pany The proceedings were brought
by the Hartford Rubber Works Com
pany, a Connecticut corporation,
through Lindabury, Depue Sc FaullSs,
of this city.
Mr.. Faulks, who represented his firm
in the proceedings, stated today that
the receivership did not mean that the
defendant company is insolvent A
large amount of indebtedness fell due
at the same time, and difficulties in
floating securities whereby it could be
carried over led the company to seek
shelter in the courts until the situa-
ton is easier to handle. For this rea-
son the complainant corporation con-
sented to stand sponsor for the pro-
ceeding.
The Electric Vehicle Company is one
of the largest manufacturers of auto
mobiles and appliances in the country.
Its home office is in Jersey City, and
the plant is in Hartford. 1t possesses
many valuable patents, now tied up
in the courts, but which are said to
represent several million dollars of
probable value.
The company was organized in 1897,
with an authorized capital stock OF
S10,000,000, which was increased from
time to time until 1t now amounts TO
$20,000,000, ninety thousand shares of
which are preferred and 100000 COM
mon stock 1t is shown that the de-
fendant is indebted to the complainant
in the sum of $11, 1,7S5.37, which repre-
sents but small portion of its liabili-
ties. 1t is shown that bonds aggre-
eating $l,521, 900 are outstanding and
unpaid Another block of bonds, issued
to secure promisory notes and aggre-
eating $4,000, were due to be paid
November /, but are still outstanding.
Other promisory notes, one for 100000,
another for $500 and another for $5,-
70S.1S, will fall due this month or in
January. 1t is also shown that the
company is indebted in it's account in
the sum of $150,000. which has been due
and unpaid since November Is. OF the
total liabilities, not including S591 043. 80
for promisory notes, it is held that
SO. .016, 900 is due and unpaid.
The assets consist of manufacture
ing plant, valued at $717, ,49S.16; furni-
ture, etc, s4,73L54; finished product,
$173. .087; consigned merchandise. 800 ,3S7-
81; raw material, supplies, etc, $770, ,474-
20; finished parts, 1878, ,71450; stocks and
bonds of other corporations, $35S, ,002;
patents, rights, etc, $11. .447. .537.2S; ac-
counts and notes, $132,O00; cash on
hand, $4,000
In addition to the above is included
the goodwill of the company and it's
trade mark, Columbia" which is con-
sidered of great value.
1t is shown that in the present state
of the money market that the COM
pany will probably be unable to cover
it's Indebtedness; that the nature Of
the business is such that during win
ter months it must pay out much
money for supplies and in the manu-
facture of products for which there is
little immediate sale; that unless a re-
ceiver is appointed 1t stands in danger
of losing much of its trade and busi-
ness through the complications that
may arise They are at present en-
ploying 800 hands, and theIe Is no rea-
son why the plant should be closed
down, it is stated.
The case is similar to that which
involved the Pope Manufacturing Com
pany, of the same town and business.
some time ago, and which at present
involves the Westinghouse properties.