The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-11-23
RECEIVER REFUSED
Judge Pollock Declines an APP
plicatiOn on Ground
Smith Automobile Company Is
Solvent.


Tuesday by the Bank of Topeka and
other claimants through their attor-
ney, w. S. McClintock, asking for
receiver for the Smith Automobile
company, was denied by Judge Pollock
on the grounds that the company was
solvent. Judge Pollock, however, ruled
that the Smith people might themselves
ask for a receiver in order to protect
their business against the action of
creditors. This ruling, it is stated by
stockholders, will be taken advantage
of and a petition filed by the company
asking for receiver.
Several times within the last month
an announcement has been made that
creditors would ask for a receiver for
the Smith company, but the action be-
fore Judge Pollock, was the first legal
steps taken.
According to statements made by the
stockholders and directors of the COM
pany, the Smith automobile plant has
found no difficulty in disposing of the
output OF its plant. 1t has, however
suffered hardships through a lack of
sufficient capital to carry on the bust
ness along the big lines planned. To
remedy this trouble, a movement was
recently started to increase the capital
stock of the company from 100000 to
S275,0G0. About $4,000 of this stock has
been sold.
Under the terms of the ruling made
by Judge Pollock, the matter is in the
may ask for a receiver and reorganize
with an increased capital. This would
prevent embarrassment from litigations
filed by uneasy creditors and give the
officers of the company protection in
the time required to perfect a reorgan
ization.
F. L. Clark, assistant secretary of
the company, declined to make a state
ment concerning the condition of the
company, further than to say that
should the company reorganize with
the increased capital, he felt confident
it will be successful.
Il do not think I wish to say any
thing right at this time" said Mr.
Clark land I think I would prefer to
wait until after some action has been
taken by the officers of the company.
I think, however, that if we can reor-
ganize and increase the capital, that the
plant will be in much better condition.
This is the dull season of the year for
the automobile business and we natur-
ally are not doing as heavy a business
at this time as we did a few months
ago"
Simon S. OFT, who is a stakeholder
in the company, said today that the
output of the plant had been readily
disposed of and that the machines
made by the Smith Automobile COM
pany were in demand at a good price.
1.-The company is naturally handi-
| capped by a lack of sufficient funds to
carry on the work as we wish to do,
| but 1 am confident that the additional
stock can be sold and the company
| placed on a better financial basis.''
W. S. McClintock, attorney for the
Bank of Topeka, declined to discuss
the petition or the plans outlined by
the creditors.
1T is entirely out of the question:
said McClintock, ito make a statenent
today. I have not discussed this ques-
ton with anyone but my client and
will not talk until we are prepared to
make public our plans"
| While the claimants of the com
pany were holding consultations, a halt
| dozen directors and heavy stockholders
of the Smith company were holding q
meeting this morning in the directors
room of the Central National bank
! building. They discussed the financia
condition of the institution; its assets
liabilities and earnings and the pros
pective future. 1t was nearly moor
men who attended the meeting refused
to make public the details of the con-
| ference
A second meeting is being held thi:
AFTERNOON for the purpose of deciding
| on the ACCESSIBILITY of the company
asking for a receiver A majority OF
the men who attended the morning
meeting were inclined to believe tina
such action would result favorably fol-
the plant in which they were inter
ested.
It is understood that the director:
have taken up the matter with o. H
L. Wernicke, president of the company
to ascertain his wishes His decision
on the question may result in another
hearing before Judge Pollock, who ha!
| the subject still before him