New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-09-13
MOTOR RECEIVERS NAMED
Reorganization of U. S. Conn.,
pany Expected Soon.
STOCK ASSESSMENT PLAN
Decline in Security Quotations
Forecast Action - Subsid-
iaries Joint Defendants.

Judge Hough. in The United States Dis
trict Court. appointed W. r. 5. Strong
and Roberts Walker yesterday receivers
of the United States Motor Company, on
the petition Of the Brown & Sharp Manu-
featuring Company. Of Providence, which
alleged an Indebtedness OF $4,000 for
GOODS supplied and services rendered
Joined as defendants in the suit are the
Alden-Sampson Manufacturing Company,
the Brush Runabout Company, the Co
lumba Motor Company, the Dayton Mo-
tor Car Company and the Maxwell Bris-
coo Motor Company, subsidiaries of the
United States Motor Company. The re
ownership is a friendly one.
announcement was made In June that
The principal creditors of the United
States Motor Company had given II An
extension of ninety days on its maturing
paper, aggregatjng several hundred thou
sand dollars Two committees, one rep
resenting the banking creditors. and
headed 10y benjamin Strong, jr., vice
president or the Bankers Trust Com
pany, and the other representing the mer-
chandise creditors, William H. Crosby,
chairman. were formed to aid the COM
pany to work out its difficulties, and W.
j. 5. Strong, consulting engineer of
this city, brother of Benjamin Strong, ir,
was elected a director and chairman Of
the executive committee, with direct
charge of the financial management.
Efforts ever since then have been made
TO effect a REIMBURSEMENT Of the finances
without recourse TO the courts, but the
recent rapid decline in the quotations FOR
the company's securities has pointed 10 a
receivership, and no surprise was occa-
Stored i'm the financial district yesterday
by the news of the naming as receivers
of Mr.. Strong and Mr.. Walker, the latter
q member of the law firm of White q
Case, which is counsel for the Bankers
Trust Company. and formerly president
of the Rock Island company.
Liabilities About S12,250.0oO.
The bill OF complaint alleges that the
aggregate liabilities of the defendant COM
panies are about S2,25Ooco, of which &C.
OD0o is represented by 6 per cent de-
henture bonds due October l. 1916. and the
remaining part by bills and accounts pay
aole, accrued interest, accrued wages e'c'
The Indebtedness TO various banks Is set
al about $4,000, represented by notes
OF which the United States Motor Com
pany is either fnaker or indorser and upon
which the subsidiary companies or GER
tain of them are liable as makers or IN
dOrsers.
The quick assets owned or controlled by
the defendant companies, the complaint
says, as shown by inventories taken as
of July 81 last, are approximately wv
90. ana fixed or slow assets, represented
by plants. factories and equipment, about
Sf,250co.
The United States Motor Company has
Sl5V0o.Ooo authorized per cent cumulative
preferred stock, of which the complaint
SAYS 81, 4s9, 7sS is outstanding; s275o,Wo
common stock, Of which sl2,9oo,35O has
been issued, and sl2.5oO,ooO authorized five
year convertible per cent debenture
bonds. OF which $4,000 is outstanding.
and for the conversion Of which S125c'oo
az the common stock is reserved.
Albert Rathbone, of Joline, Larkin d.
Rathbone, counsel for the reorganization
committee, said. in explaining the reason
Tor the receivership:
on June 10 last the United States
Motor Company asked q ninety days eX-
tension OF It's INDEBTEDNESS, sno inns re
quest was acceded TO by creditors. the
committees. representing all cltsses or
creditors, which since then have been
examining into the affairs Of the United
states Motor Company and its subsidiary
companies have reached the conclusion
that these companies can be success
fully reorganzed and with proper man
agement and new capital supplied can
be operated profltably. Considerable
progress has been made in securing tho
new money needed to place the reor-
ganiZed company in a strong operating
position 1t is confidently expected that
q reorganization will be announced dur
ing the current month.
The receivership will materially aid the
contemplated reorganization; II permits
the continued operation OF the various
plants and prevents interference with
the assets during the reorganization
period. By means of the present legal
proceedings titles TO the properties can