The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-06-04
JONES co. FAILS.
Big II. G. Store in the Hands of
Receivers.
LIABILITIES at 81 100000; As
sets at $2,OOO,OOO.
CONCERN is SOLVENT.
Business Will Be Continued
Without Interruption.
A Number of Causes Assigned
for the Trouble.

Kansas City, June 4.-Receivers for
the Jones Dry Goods company, one of
the largest retail general merchandise
concerns in this part of the West,
were appointed by the federal court
here today.
The liabilities are placed at ST.
100000 and the assets at over ST.
100000. Henry L Root, vice presi-
dent of the wholesale dry goods firm
of Burnham, Munger & Co., Kansas
City. and Charles Campbell. vice pres
ident of the Fidelity Trust company.
of this city, who were named as re-
ceivers by Judge John F. Phillips in
the United States district court, gave
bond in the sum of 100000. The
receivers stated that the company was
solvent and that its business would be
continued without interruption.
The action by the court was taken
following the filing of a bill in equity
bv Holingshead & Campbell of New
York City, note brokers, who hold two
of the company's notes for $4,000 each.
The petition asserts that the business
is being poorly managed and the ac-
ton is taken to prevent small cred
ftors from securing judgments and
thus jeopardizing the interests of all
concerned. 1t is alleged that the COM
pany has been spending large sums
for realty and for leases that should
be placed in the business.
The immediate cause of the receiv-
ership is given as poor business result
ing from unfavorable spring weather,
making it impossible to meet the OBJ
legations, which were maturing at the
rate of $4,000 a week. The petition
did not contain a list of the creditors,
but it is known that these are distrib-
uted over the entire country. The prin-
cipal creditors are in ST. Louis, Chica-
go, Philadelphia and New York.
Forty creditors of the Jones COM
pany representing 95 per cent of the IL
abilities of the company, met in the
pany Thursday and agreed to extend
further credit to prevent it going into
the hands of a receiver.
It was admitted by the creditors
that the company was in very tight
place.
bank will not lose a dollar The bank
was transferred last Monday to the
Missouri Savings bank. The cashier
said: "The Jones Brothers turned
over $4,000 in cash, which was every
dollar on deposit in that bank"
Receiver Campbell in a statement Is
sued says:
1.-THE store will not be closed. We have
permission from the court to borrow
money to pay running expenses. Our
purpose will be to operate the store on
conservative and economical lines. Some
of the expensive leases may be given
up. We hope to pay the creditors in
full and then discharge the receivers
and turn the business back to it's own
ers.
1.-The debts or liabilities aggregate
about $1.400,000 The assets, or the
stock and property owned by the firm,
aggregate about $2,0O0,000.
Most of the creditors are banks who
own the notes. Those debts are dis
tributed among banks from Kansas
City to New York. Kansas City banks
have about $25O,000 of it. compara-
tively small part Of the debts are held
by the merchants who sold the goods
tC the store
The Jones Dry Goods company was
organized by l. NJ. and ]. Logan Jones,
brothers, who previously to coming to
Kansas City, Is years ago, had con-
Quoted small dry goods stores in CEN
tral Illinois and in Kansas. Their
store here occupied the greater part of
q block square bounded by Twelfth and
Thirteenth and Main and Walnut
streets.