The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-09-12
HELD INSOLv VENT
Motor Car Trust Goes Into
Hands of Receivers.
Aggregate Liabilities Amount
to S12,25O,OOO.
PROCEEDINGS ARE FRIENDLY
And for Purpose of Clearing Up
Concerns Affairs.
Operation of the Plants VIII
Be Continued.
PROCEEDINGS ARE FRIENDLY

New York. Sept. 12.-Receivers were
appointed today for the y. S. Motors
company, a $42 500, 600 holding corpora
, ton organized in 1908 to control ten
automobile and gas engine manufactur-
ing companies. It's directors number
some of the best known capitalists in
the country.
The receivers, w. E. Strong and Rob
ert Walker, were appointed by Judge
Hough in an insolvency suit brought
by creditors. Five of the holding firms
constituent companies were involved.
namely:
The Alden Sampson Manufacturing
company of Detroit; the Brush Run
about company of Detroit; the Col
umbia Motor company of Hartford;
the Dayton Motor Cart company of
Dayton. o., and the Maxwell Briscoe
company og Tarrytown, N. Y.
Bankers Identified with the com
pany say that the proceedings are
friendly and brought with the pur-
pose of clearing up the company af-
fairs.
The securities of the United States
Motor company have been declining
on the curb market for some time.
The aggregate liabilities of the de-
fendant companies, the petition
states, amount to approximately
$12, 1000.
Albert Rathbone. COUNSEL for the
reorganization committee, states the
committee representing all classes of
creditors have reached the conclusion
. that these companies can be success
fully reorganized and with proper
management and new capital oper-
ated profitab bly,.
Mr.. Rathbone said the receiver
ship permits continued operation of
the various plants.
A Wall Street Scandal.
The collapse of this project forms
o. al
street finance. Some of the most in
, f1uential banking houses of the Uni.ed
States were behind the formation of
the combination in 1910 and the pub
lie was completely misled concerning
the stability of the concern.
George w Perkins was reputed to
be one of the inspirers of the anal
gamation, While Morgan institutions
have figured prominently in its fnare-
ing.
Last year the preferred stock sold
above $50 per share, whereas today it
collapsed to only S6.25. The comm Oh
stock last year went to SAP per share;
it was quoted at only 81 bid this after
noon.
Last fall The issue of $4,000, 600
/ bonds was disposed of at 80, notwith-
standing that the condition of the
company must have been known to the
insiders. Even thcn, however, many
inventors fought shy of the offering
and the underwriting syndicate head
ed by Eugene Meyer, jr., e Co., wes
left with a large part of it on their
hands.
AS late as December last, President
Briscoe, in his annual report to stock
holders, made this statement:
Prospects for the company's bus
ness during the company year are ex-
ceedingIy bright
Yet within six months financial diff
f1culties were encountered to such a
degree that creditors were asked to
grant an extension of 80 days. The
EN- barrassme of the company so
soon after the issue of $4,000 600
bonds took the financial community
by surprise. 1t is limited that GER
tain banking Institutions scurried to
cover the moment the treasury was put
in possession Of cash and later refused
to supply fresh credit.