The Washington herald., 1912-09-13
NAMES RECEIVERS
F0RU.s. M0T0RC0.
Judge Hough Appoints Men to Look
After Assets Pending
Reorganization.
ENTIRE INDEBTEDNESS
PLACED AT $12,250, 900
Quick Assets Said to Have Consisted
Of Less Than $500 600 in
Money and Reeeivables.

New York. Sept. 1.-THE financial EN-.
barrassment of the United States Motor
Company, mentioned exclusively In The
Washington Herald yesterday morning
came to a head to-day when receivers
were appointed for the s2.5OOoco corpora.
ton by Judge Hough in the United States
District Court. w. E. S. Strong, brother
Of Benjamin Strong. Jr.. vice president OF
the Bankers Trust Company, and Robert
Walker. former president of the Rock Is
land Railway. were named as receivers.
This step followed proceedings In
equity. brought by Brown g. Sharpe
manufacturers. Of Providence. R. l.. who
are merchandise creditors in excess OF
10000. Constituent companies of the
United States Motor Company are the
Alden-sampson Manufacturing Company,
Brush Runabout Company. Columbia Mo-
tor Car Company. Dayton Motor Car
Company. and Maxwell-Briscoe Motor
Company
List of Assets.
The bill Of complaint filed against the
United States Motor Company says as
sets OF the defendant companies include
the completed automobiles worth ap-
proximately ZOO. 900. and sales OF such at
anything like true value can be effected
only through selling companies. Of which
the United States Motor Company had
about forty through the country. One
of the chief assets consists Of factory in
ventories of A.ooo.ooo. comprising various
sundry parts, but not including any sub
stantial number of cars ready for sale.
Allegation is made that the motor COM
pany Is liable upon an entire indebted
ness OF about So, 1900, as receivables
owned by subsidiaries are. IN many in
stances, not Immediately collectible OF
the so-called quick assets less than s.
$4,000 consisted OF money and receiv-
ables.
Some of stoclh oIders.
OF the capital stock only about SO. ooo, :
900 is outstanding
Among the stockholders are Anthony
n. Brady. James C. Brady. ]. S. Bache,
Caroline w. Astor, Benjamin Briscoe,
Col. Samuel P. Colt. Frank Briscoe, H.
Holbrook Curtis. and Eugene Meyer, jr
The estate OF John Jacob Astor also is a
stakeholder.
Contrary TO reports, George w Perkins
had no connection with the company.
The principal reason for the big COM
pany's difficulties was a very inadequate
working capital In comparison with the
growth OF its business. More than II 1000
NNA-S "NaS oSAo @sA-s anu NA'V bIOss
business of the company footed up s2J-
10000. Its plants at Tarrytown. New
Castle, Providence, Dayton. and Hart
ford were worked TO full capacity during
the winter. but owing to a backward
spring the small dealers did not take
tie cars as quickly as contracts called
for.
Stock Goes Down.
The proceeding in equity means the
appointment OF receivers simply TO look
after the assets OF the company pending
a financial reorganization.
In the curb market to-day United
States Motor Company stock was quoted
at y to II, against a sale yesterday at
II. The preferred was quoted at AZ to
81. compared with yesterday. The pre-
ferred has been as high as $50 and the
common up to $40 share.
The principal creditors OF the company
include the Bankers Trust Company.
Central Trust Company, Chase National
Bank. and Moseley & Co.
Last fall an issue OF 500. oo1 bonds
was sold at 81 by an underwriting syndi-
cate, headed by Eugene Meyer s. Co.
The sale did not go as well as was ex-
pected. and the syndicate had a large
part OF the bonds left on its hands To-
day they were quoted at 40 bid and so
asked.