Norwich bulletin., 1912-09-13
M'cRUM- HOWELL CREDITORS
 CLAIM FIRM IS INsoLVENT Petition fer Sale of Factory Plants and Other Asssts--Sss No Hepe of Recruaniaxtien.

The McCrum- Howell company has been given thirty days in the United States district court in Philadelphia in which to answer the petition of Albert H. Wiggan, John c. McKean, Charles H. Sabin and Herman Wal deck, creditors. who allege that the company is hopelessly insolvent and that any reorganization of the con- cern as heretofore proposed would be detrimental to the creditors and the stockholders. They also allege that the company's plants are inadequate for the manufacture of vacuum cleaners, one of the principal features of the company's business.
 Supt Joseph W. Curtiss of the Nor wich plant of the company stated that he knew nothing of this recent action by the creditors of the corporation, and that it was having no effect upon the work at the local plant. They have been very busy there lately, doing a lot of work. using two cupolas. Assets Less Than Debts.
 The petitioners above referred to ask that the plants and other assets of the corporation be sold immediately and the business wound up. These pe- titioners are . committee representing tho creditors and they assert that the averment of solyency made in the or iginal bill by tho stockholders Is not true and that It will be impossible for the company under any circum- stances to pay It's debts and continue business. The committee denies that the quick assets arc more than the liabilities of g sss.sll.o4 and says that in addition there are $574,o0o of con- tested claims. The outside value of the assets. the committee sayA Is not more than s2.4oe.o .oee. although the receivers reported that the company's
 assets are s2,ss2,ss7.ss.
 :, Receiver in March. The McCrum- Howell company was forced into the hands of receivers last March upon a bill of complaint filed by a stockhelder. It was averred at the time and was admitted by the the officers of the company, that the concern was not insolvent, but merely temporarily embarrassed, and that court proceedings were brought so that the reorganization of the con- cern could take place under the di- rection of the court.
 Action Against Mir. Howell. A petition was filed in the United States district court in Hartford, June 3, praying that George D. Howell of l that city be adjudged a bankrupt. ' This petition was signed by the Me- ! chanies & Metals National bank of New York city, the Corn Exchange National bank, and the Franklin Na- 1 claims for s5,OeO. money loaned by \ each bank in October, 1911, to the McCrum- Howell company, the claim against Mr. Howell being by virtue of his indorsement before delivery of a promissory note (for $5,000 in each easel executed by the McCrum- How ell company, and taken by the banks for value before maturity, of which
 no part has been paid
 --AiIseed Act of Bankruptcy. | The act of bankruptcy on MT How
 ell's part which is complained of is | that on March 13, he, with Lloyd C. McCrum, made a general assignment I for the benefit of their creditors tc Oscar L. sTelling of Pittsburgh as
 trustee, conveying their properties and
 stocks.
 Not General Assignment.
 MT. Howell, through his attorney William F. Henney, filed a demurrer to the petition and said that the doc. ument executed March 12 is not ir law a general assignment for the ben. eft of creditors, nor does it purport tC
 be such. Tt does not appear from
 that document" says the demurrer
 that the respondent at the date o
 such execution was not insoIvent bu
 solvent"
 Demurrer Not Argued.
 No date for argument on the de
 murrer has yet been assigned by {
 judge of the court.