New-York tribune., 1911-04-08
CONTRACTORS IN TROUBLE
CatSkiIIS Contract EndangerS
Large Chicago Firm.
T0TALLIABILITIES$5,00 600, 900
George w. Jackson, Incorporat-
ed, Aspired to Build $50, ,000,-
600 Chicago Subway System.

Chicago. April 7.-George w. Jackson. In
corporated, one of the largest contracting
and engineering firms in the country, turned
its affairs over To creditors committee
to-day. The action was voluntary because
of the need of ready money, the companys
assets being largely tied up.
The firm was Incorporated 10y Mr.. jack
son few years ago after his business in
most of the large feats of engineering in
the way Of tunnels. subways and lake cflDs
in Chicago in recent years were his woik.
When the firm took a contract on the
Yonkers On. " water pressure tunnel
however. il tied up it's assets 10 such an
extent that il found itself short of ready
cash. it was explained by the creditors
committee to-day, and MIR. Jackson sought
aid from his creditors 10 avoid financial
mishap or a possible receivership.
Unsecured liabilities floating debtor
about Sl.0G0.oD. big enGineering projects
half completed and In danger Of collapse
poor credit at the banks. failure To float a
recent s2.Ooo,oOO issue Of stock and inability
to pay either for material OF for labor now
being used. brought the affairs of the con-
tTdCllilS W a NiiSi''
II is said the total liabilities Will reach
100000 One of the officers Of the com
pany said this amount was offset by as
sets roughly estimated at $50 .WN.
banker who Is connected with one Of the
creditor banks said. however. that When
the whole matter was sifted down the
real assets would total about ninety per
cent Of the debts Of the concern.
When the situation became public the
creditors and officials of the company ne
came alarmed. particularly in view OF the
fact that Mr. Jackson had left Chicago for
New York for the purpose of overseeing
the work on the tunnel for New York ;
water supply which he is building at Yon-
kers II was feared that some panic
stricken creditor might rush into the bank
ruptCy courts or ask for q receiver. and
spoil the plans of the large creditors for a
more economical extrajudicial settlement.
Mr. Jackson was Immediately stopped
in his journey nv telegram and while
waiting for a train back to Chicago held
long conferences with those interested by
long distance telephone.
Although he does not hold majority OF
the stock. he has always dominated the
company tn such an extent that there iS
alleged to he no fear of opposition when
the proposition is submitted at the stock
holders meeting There are about two
hundred stockholders I'm the company. most
of them residents of Pittsburg. Philadelphia
and New York.
The company has many hig contracts un-
der way in Chicago and in other parts Of
the country ;he chief of which is a section
Of the system by which water is To he
brought from the Catskil Mountains to
New York. Jackson has undertaken the
most difficult part of this work. a tunnel
two miles long. through solid rock.
The most important. however. in the
eyes of Mr.. Jackson was his plan for
the Chicago subway. 1t has been the
ambition Of his life to become the builde~
Of the great structure which is TO solve the
transportation problem of the loop. He
has studied the problem from every angle
and has offered to do the job for $s0.0ooOO0.
The resources Of the firm are largely tied
up in fixed assets. such buildings and
machinery, according TO Attorney Milton j.
Foreman. counsel for the creditors COM
mittee, who said
THE instant need for ready money made
il advisable that creditors committee
take charge TO secure the necessary funds
and complete the contracts without loss"