The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1912-06-25
NEW RECEIVERS
FOR THE ALABAMA
CONSOLIDATED CO.
W. E. Leake and Harry w.
Coffin Named by Judge
Grub
LOCAL CREDITORS
FILED THE PETITION.
Local Receivers Take Precedence in
Authority Over Those Recently
Appointed by New Jersey
Court-Prominent Men

Taking precedence over the recent New
Jersey court action In reference to the
Alabama Consolidated Coal and Iron COM
pany, an involuntary petition In bank
ruptcy was fled yesterday in the local
United States court against that indus
trial corporation. After arguments had
been made in connection with the APP
polntments of receivers, Judge w. T.
Grub appointed W. f. Leake, the wide
| ~ known Industrial expert. and Harry w
Coffin of the Moore &c Handley Hardware
company.
The two receivers superseded Harry S.
Matthews, co-receiver OF the New Jersey
court and president of the corporation.
as active heads of the company after fill
ing bonds of $4,000 with Major Allison.
through George C. Oliver, representing
the National Surety company.
The petition was filed by the companys
local unsecured creditors, who appointed
a protective committee several days ago.
They include the Tyler Grocery company.
5000; the American Bakeries-Candy COM
pany, $780, the Alabama Grocery COM
pany, about 5000. and the Collins Grocery
company, about $500. The petition recited
the alleged fact that the company is now
insolvent and prayed the appointment of
receivers. Tillman, Bradley & Morrow
appeared as attorneys for some of the
creditors, while Alexander NJ. CARRIER also
represented some of the creditors
Receivers Satisfactory
In naming the receivers their qualifca-
tons were gone over and all of the credi-
tors were satisfied with the appointments.
There was no personal objection raised to
the appointment of President Matthews of
the Alabama Consolidated. However, 1t
was maintained that the close personal
attachment between Mr.. Hoadley, chair
man of the board of directors and former
president of the company, might in a
measure be looked upon as one reason
for the non-appointment of President
Matthews. Judge Grub said he invaria-
bly, followed the practice of appointing
no executive head of a corporation where
the creditors objected. Mr.. Matthews is
of the opinion that the affairs of the COM
pany will be worked out upon his original
lines and the situation will be satisfactory
in the finale.
Mr.. Leake and Mr.. Coffin assumed
charge of the company's affairs yesterday
afternoon soon after qualifying. They
held conference with the old officials
and went over the situation briefly. Mr..
Coffin was named spokesman for the new
company so far as the newspapers are
concerned, but had no statement to give
out yesterday further than to say that he
and Mr.. Leake had taken charge and
knew nothing at this time excepting that
bare fact. 1t was learned, however, yes
terday afternoon that the receivers had
advised the employees of the company
that they were now working only by
the day and not by the month. 1t was
announced to the employees that they were
to consider themselves liable to release
almost any time, if that course was de-
cided upon. The receivers have outlined
the policy. however, of keeping the line
organization intact as far as possible 1t
was made clear to the management that
no change would be made simply to place
favorites in good berths
Local Receivers Have Precedence
The petition here follows a receiver.
ship appointed In New Jersey last week,
whereby Mr.. Matthews and two other CO.
receivers were named by that court. How
ever, involuntary petitions in bankruptcy
by local receivers have absolute authority
under the order of Judge Grub.
The company, as generally known, has
been beset with a stock warfare for sew
eral weeks. The interests represented by
j. Fl. Hoadley. an admittedly brilliant
operator, has been unfavorable, it is said
to other stock owners or bond owners.
The fight has. been waging in Baltimore
for some time and its duration meant
sonly one thing to those familiar with con-
ditions here. which was the receivership.
During the month of May the payrols
are said TO have been passed. while the
payrolls for the current month have not
been paid. it is said. The reported in
solvency of the company does not meet
with any denial from the men in close
touch with the company's condition. 1t
is understood that the two receivers will
look into the general situation and will
determine between this time and Monday
whether any operations will be closed
down. 1t is said that nothing will be done
in that direction excepting what is abso-.
lutely necessary and that the receivers
will have in mind all the while the gen
eral good of the district.
Who Receivers Are
The receivers are thoroughly satisfac-
tory to the general business interests
here Mr. I.eake is an operator and In
dustrial man. few of whom are better