New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-12-30
DEFAULTS ON IT'S BONDS
r,;eudIy ReCeivership for AIIls-
Chalmers Now Expected.
CARY NO LONGER CHAIRMAN
wall Street Surprised Yesterday
"a Learn That He Resigned
Several Months Ago.

Sever dl 4uOAb6S ~ASN
The directors Of the Allis-Chalmers Com
~ decided yesterday not TO pay the jan
interest on the company's outstanding
ar 0n first mortgage per cent ponds
- 4, is expected that a friendly receiV-
80 will be the next step in the anairs
~ the corporation.
., -,.,,,rh the absence Of ex-Judge E II.
-, who had been chairman of the board
" s,recto~s OF the Allis-Chalmers Company
- January. 1902. 1t became known mat
rs5 resigned as chairman and as d.
- several months ago This news
az O surprise 20 Wall Street. as there
"a, -, no intimation that Judge Gary
70 ..varad his connection with the COM
which is said TO have received
- amount Of business in recent years
-, the Steel Corporation. Of which Judge
Gary IS chairman.
r,9cs Gary. when asked the reason for
,,s resignation last night said that the
Set ~ the United States Steel Corpora
80, kent him so busy that he found it
,.-,ossibIe 20 devote much time 10 other
.or,orafiors. Further than this he would
-, siscgss his resignation. which he char
-, n, other members Of the board had
-,.,ra5 m the time ne did. and whether
,,.ra had been any designations since that
time De did not know. as he had not kept
n touch with the affairs Of the company.
= % Adams, who represents the DeutscNe
Rank on the ANis-Chalners board. has
hser acting chairman since the resignation
- Jud-e Gary The DeUtsche Bank Is IN
s.~.-sol 10 hold large amount Of Ais
Chalmers securities.
Directors Issue Statement.
go~-v-+rg the meeting Of the directors
Yesterday. which Was the fourth that has
bssr held in three weeks and was IN
vsual!y prolonged. the following statement
n,ss given out by the secretary. W. w.
Nichols.
The directors OF the Allis-Chalme-s Com
ssav al the meeting held to-day decided
ihat in view Of the continued depression 1T
business affecting especially TINS company .
,be decrease IN earnings ana the CurtaA-
uert OF credits. IL would not be advisable
II udy the interest on the first mortgage
iqg' ' cent ''n'S 'o"n'"s u'' '1N1 -
The directors were OF the opinion that
the business could not be prohtdbly con-
tl9u.d in the future unless additional Work-
charges reduced. and that additional work
ing capital could be obtained only by a re-
adjustment o. the cOmpanys capitalization
T-nGer the circumstances the directors felt
that they were not warranted in using the
cash 10 the treasury except for the pay
nent of merchandise creditors, payrpls and
taxes. These current obligations Will be
paid as they mature and FUNDS are avail
ALE for that purpose. IL Is hoped that a
satisfactory arrangement can be made for
the extension Of the other current oblisa-
tons maturing I'm the near future.
The stockholders committees are endeav-
oring 20 agree with the hOndhOlderS' COM
ui'tae upon a plan Of reimbursement Of the
Capitalization OF the company which VIII
provide for adequate working capital and a
reduction OF nXed charges. II is expected
that such IS plan viii shortly be submitted
o. the security holders for their approval
Ruuors o. ar impending receivership for
the AUis-Chalmers Company We're circu-
lated ass long ago az August. 1917. when the
common stock broke points and the pre-
ierred : points in an hours trading. Off
GERS Of the company did not deny that the
company was not as strong financially as
IL might b. A month later it was an
DouDced that Judge Gary. who had not
previously taken a very active part I'm the
management although he was chairman OF
tra board. would take hold Of the active
mana cement Of the company and bring tc
JOS aid the large financial support he had
back Of him. The company came through
the panic successfully and seemed 10 ne
getting along all right until few months
ago. when its securities again showed pro-
ro1oced weakness, and rumors that tho
company was in financial difficulties one.
more became current
Ccueht Rehabilitation Plan
These reports were confirmed early IN
December when the directors announced
thar conferences were being held with
reYraeen-atives of the houdhOlders and
stockholders in regard to raising additional
working capital. Tho following day. De-
cenuer o. ir was announced that a protec-
tive committee Of bondEolders had been
formed headed by James y. Wallace,
president OF the Central Trust Company,
and would endeavor 10 work out a plan
for the reorganization OF the company
finances Committees representing the pre-
ferred and common stock holders were
formed a few days later and have since
been cooperating with the bondholders
ocmmittee in an effort 20 formulate a plan
10 put the company On its feet.
r--he Allis-C Chalmers Company was incor-
porated in New Jersey in May. 1901, with
capital stock of $50, 100000. consisting Of
half common and half per cent cumulative
preferred stock. OF the common there Is
outstanding $19.s20O 600 and Of the pre-
ferred s16.O5o. 900 No dividends have been
paid on the preferred stock since February.
1904. UP 70 which date the full per cent
was paid In the last week the common
stock has sold down 20 is and the pre-
ferred to 5-S. There were no transactions
In either issue yesterday.
In addition 10 its capital stock the com
paay has an authorized issue Of SIS, 1000, 900
first mortgage per cent bonds. Of which.
as already stated, S1L017,O 900 is outstand-
ilg Delmer W. Call Is president Of the
COMPANY and among the directors. in add
ton 70 Mr. Adams, are Cornelius Wander
hit S. s. Palmer. william A. Read, Charles
MacVeagh and Max Pam. The company
Manufactures heavy machinery.