Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-10-07
Ah5ONC)kPANY FAILS.
WuHEtvER NAMED FOR WATER
LOO CONCERN MANUFACTURE
ING AUTOMOBILES.
NO RESISTANCE MADE
TO MOVE OF CREDITORS
Company Willing Court Shall Take
I Charge Of Affairs-FaiIurs to Moot
Intsrsst Charges on Bonded Indsbt-
ednsss Causes Action-PIans Under
Way to Keep Factory in Operation.


Waterloo. Oct. Ira ]. Hoover was
appointed receiver of the Mason Motor
Company by Judge c. w. Mullan IN
district court, and his bond was fixed at
$4,000
+. The appointment was made in &C
cordance with petition filed only
few moments before by Fred w. Pow
ers, trustee. An answer filed by the
defendant company at the same time
consented to the receivership and also
consented to the sale Of the property
without right of equity or redemption
by the defendant company be made as
provided by trust deed previously
given DR.. Powers to secure S1oo,u0O
bond issue.
Judgment was asked by the plaintiff
for the amount due on 100000 worth
of the bonds together with interest on
$4,000 worth Of bonds from July l,
1913, and interest on $4,000 worth of
bonds from Jan /, 1912. According to
the attorney for the plaintiff the total
amount Of judgment will be somewhere
between 5000 and $40, 00G.
The plaintiff asked that the receiver
be ordered to sell all the property of
the defendant company and pay the
proceeds to the bondholders. The court
has not yet made such an order and II
is limited that legal com plications may
result. II is the desire OF both sides
that the company and its business be
maintained and that the plant Of the
Mason company be allowed TO continue
90 operate.
Substance of Petition
In his petition Mr.. Powers states that
on Dec IA, 1911, the Mason Motor Com
pany executed series Of $50 bonds in
the sum of $4,000. Bonds aggregating
$4,000 have been retired and cancelled.
but the remaining 100000 in bonds
nave not been retired.
To secure the payment Of these
bonds. the company made and delivered
20 the plaintiff, as trustee. deed Of
trust covering the property, both real
md personal, Of the defendant COM
panr.
The motor company. continues the
petition, has failed to pay the interest
on $4,000 worth Of bonds or to pay
and satisfy taxes and special assess
ments for the years 1911 and 1912. More
than half the holders OF the stock. says
the petition, ask that the outstanding
bonds be declared due and payable and
that the trust deed be foreclosed.
The plaintiff declares that a large
portion of the property Of the Mason
company that is secured by the trust
deed consists Of bills and accounts re-
ceivable and other evidences of indebt-
sdness due the company. that many OF
these debtors reside outside the jur!s-
LII IL nj
and that the debts go due will be lost
and dissipated unless efforts are made
to collect them.
In its reply the defendant company
consents to the appointment Of the re-
ceiver and to the sale, this consent
having been voted at meeting OF the
directors Of the company held Sept. y.
Mason Explains Cause.
E. R Mason, the president Of the
company. when seen. said that the re-
ownership was made necessary by the
insistence Of the creditors. most of
whom were not willing to grant an
extension A number Of suits have been
brought and judgments entered against
The company, and 1t was thought best
TO have the mortgage foreclosed and a
receiver appointed.
He has sent out to the editors a
stock for their claims and an addi-
.ional amount Of common stock out OF
me holdings Of Duesenberg and Ma
con. Mr.. Mason and Mr.. Duesenberg
who are the heaviest holders o. the
common stock, have also offered to
retire a very large proportion OF their
stock. the effect Of which would be- If
the creditors accepted their offer, that
the total amount OF the stock out
standing would be less after the issue
TO the creditors than It now is. In the
event that the creditors decline &c
accept the position, the foreclosure
sale will be had Immediately which
will. so far as the company is con-
cerned be without equity Of redemp-
ton and immediate possession Will be
given to the purchaser.
NJ. Mason also said that a. syndi-
cate was being formed for the pur-
pose Of taking over the business anc
continuing it. In the meantime, thu
receiver will be authorized by the
court TO continue the business 50 thai
parties having cars Of their manu-
facture Will have no trouble in OBJ
tanning repairs and service Just the
same as tho there had been no receiver
appointed.
1.-The prospects of the business Of
the company for the coming year
were never better" he said 1--WE
have made arrangements to use the
Duesenberg motor which has been sc
successful in the racing of the last
two years. While the Mason Motor
Company may be thing of the past
the business will be continued on the
same lines as before.
"a very large percentage Of the IN
debtedness owing by the company wa:
created in the carrying out of tn.
terms of promise which went thru il
1911, nearly Is per cent Of the indebt
edness being so created"
FUNERAL OF JUDGE COLE.
Bar Association and Dr.k. 80, O..