The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-11-24
Judge Pollock Appoints One for
Smith Auto Co.
Z. b. Clark, Secretary of the
Company, the Man.
ACTION Is FRIENDLY,
tx ReceiVership Granted to Give
Go. Chance to Reorganize.
A Splendid Car-Enterprise tn
Encourage.

Acting on the petition in bankruptcy
Med by W. s McCIfntock as attornev
Tor the TuthiII Spring cOuuar7r ~
I chicago, the B F. Goodrich com pany
OF Akron. O., and the Long Mzuufac-
ling company OF Chicago Judge
appointed z. B Clark receiver for the
oLllln Automobile company Of Topeka
lark Is Ine present secretary OF the
company His bond is $4,000
I Clark was appointed, subject TO Ger
tam limitations, with Instructions to
+ Keep down the expenses and to pre-
serve the property from further at
+ tack pending the carrying on OF the
negotiations begun for the re-organi-
eaton or liquidation of the coruuanvss
affairs If any Of the plans for re,1r-
sanlzat1on can be carried out, the uti-
gatlon can be quickly disposed Of
a meeting of the directors of the
company is called for next Tuesday in
E215-lls h-1llssas CITY Tor the purpose Of con-
slderlng resolutions consenting to the
appointment Of a receiver and to ad-
Jud1cat1on in bankruptcy II all plans
Tor reorganization shall fail.
The total Indebtedness of the com
pany is given at sI9sG00 The tang
lnIe assets are practically the same
amount, although some of the cred
| ltors claim they are worth less
Following an embarrassment feIt
1 sometime ago, the company called a
--CAA+OAS AAECE1uS WnIC0 was nafd
nov IN the directory room Of the
Central National bank building. About
thfrIy-hve persons attended the meet
ing and most Of the creditors were
represented Prior to this meeting a
plan for reorganization was proposed
company.
President Wernicke's Statement.
In letter dated October ). the
president in q letter stated that if the
banks Of Topeka and others interested
would loan him on his personal notes
100000. taking the notes OF the
Smith Automobile company as col
lateral to his notes. upon four months
time with written agreements for ex-
tensions. he would use the 300 600 70
pay off the indebtedness to the rner-
chandtse creditors, which amounted TO
about $4,000.
Indebtedness TO Three Topeka Banks.
The Indebtedness to the Topeka
follows Bank Of Topeka. $4,000;
Merchants National bank, sIs.O80l
Central National bank. sI1.5QO.
The Central National bank claimed
to have securities in bonds OF an old
bond issue. Their security is cues-
toned by some parties interested in
the affairs of the company. Wer-
Hicke's proposition was not acted upon
and at the creditors meeting a creif-
tors committee consisting of S s OFT.
itors of about SS2,500. = p MuIvaue-
representing the Topeka banks, repre-
sentfnS the commercial creditors was
appointed with recommendation that
they accept Weruicke's notes If they
could be obtained.
Presidents Proposition.
Wernecke, 1t seems. then declined TO
give notes to all of the creditors. claim
ing that the ability to secure exten-
sious if needed, would be cut off. He
= -
which he offered to subscribe for him
self and his Grand Rapids associates
81 5000 to q new corporation If To-
peka people would subscribe 100000
sued IN reorgauized company. capf-
taIiZed at 100000.
J. r Mulvane and E D. KeIIau
promptly subscribed 5000 each, while
expressed a willingness 10 subscribe.
Through absence or other compIi-
cations, the subscriptions were not OBJ
aimed 1t was thought that a differ
mt form Of corporation than proposed
by Wernecke would be more acceptable
o prospective investors, q new pros
7ectus and stock subscription was pre-
pared TO be circulated. BY which the
corporation should be Incorporated for
capital stock Of 81, ,000, ,0Qg. about two
itock and oue-third common stock
Interested parties promoting the re-
'rganiZatiOn plans were active and
,oJEuted on creditors and stockholders
'emaining quiet until the new plans
ould Be executed There are about 200
tockholders in the company and It was
to hold them off
A suit was filed last week IN the dis
riet court Of Shawnee county for
ISIS a few days later as Mr.. Wer-
Lecke passed through Kansas City. he
vas served with summons in z suit
lied there for about 5000.
RumOrs became more persistent
hat some dissatisfied stockholders
we're about to apply for a receiver
nd it was deemed advisa bic to file a
petition in bankruptcy in order tc
top these miscellaneous proceedings
md to have a receiver applied for in
)rder TO preserve the property as
,oiug concern and keep il from being
1osed by attachments and other pro-
.eedings
Story of the Smith Auto Company.
The company was organized eight
ears ago by Clement and Anton
mith- They found their capital was
-ot sufficient to carry On the busin ess.
hen Weruecke, q Grand Rapids mil
lonaire. and his associates paid s25.-
90 to Dr. Anton Smith for his inter
SITS. Immediately the company was
eorgauized as Missouri corporation
Neruecke and his people then put
Z 5000 into the business, which Is
laImed by some was intended to be
0r capital stock
Wernicke and his friends claimed
ater that the property was misrepre-
ented to them and claimed that for
his reason the $4,000 they put into
ne plant was in the form OF a loan
nd that they are creditors to this
mount
lobue OF established reputation, holding
many points OF great merit and advzn-