The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-08-27
$39,000,000 COMPANY
IN RECEIVERS HANDS

New York. Aug 26.-Reeelvers
We're appointed By the federal dis
trict court, Judge Mayer presiding,
this evening for the international
Steam Pump company, 100000
corporation. with several plants and
subsidiaries throughout the country.
This action was taken by the Judge
at the request of three creditors of
the concern who brought a friendly
suit in equity AGAINST the corporation
in order to protect its assets from
the disastrous effects of possible in
solvency by other creditors.
The receivers named were C Philip
Coleman ana Grayson NJ. +. Murphy.
They were placed under joint bond
of $50, 600.
The international Steam Pump COM
pany is New Jersey corporation, but
has it sheadquarters In this city. 1t
was built up To It's present size by
/ the late benjamin Guggenheim, who
was its president until he lost his life
in the Titanic disaster. The office has
remained untitled from that time. His
brother. William Guggenheini, Is
chairman of the finance committee,
No surprise was manifested in Wall
Street today over the rumor That an
application would he made for re-
Ceivers OF the company. which has
been laboring under financial difficult
ties for some time Dividends on the
preferred stock have not been paid
since May. 1913. although from two
years after It's organization in 1899
the concern has regularly paid its 6
per cent each year.
Had 1t not been for the depr essed
condition of the money market due to
the war however the corporation
might have borrowed enough money
TO tide 1T over this critical period.
The liabilities Of the corporation as
set forth ia the complaint are s10,s39
937 but of this amount s9,542,295 rep
resents the bonded Indebtedness. A
recent statement placed the assets at
S52, 00o.o0 These, however, are of such
a nature, the complaint states. that any
attempt to llquidate them at present
would result IN the injury Of the credi-
tors.
If the business Of the defendant com
pany is continued. the complaint
argues and its creditors and stock
holders enabled to adjust its affairs,
there is good ground for hoping that
all the creditors will be paid in full
and that valuable business and prop
erty viii he preserved for its stock
holders
According to a statement sent out on
behalf OF the board of directors to-
night the recevership was rendered
necessary by the fact that although
tho company has been doing fairly
prosperous business, and has been
earning considerable more than its
interest charges, 1t will not be able to
mako the interest payment of ABOUT
$4,000. and the sinking fund payment
Of s25o.ooo, due September !. on its
S9,34'. 500 worth of first lien. twenty
year. per cent bonds
II will also be unable TO meet on
October next the per cent interest
on its Sil50on0 worth Of outstanding
collateral trust notes.
The output of the corporation is
steam and electric pumps. air COM
pressors, ore and rock crushing ma
chimes. gas engines, power transmits
sion machinery. etc.
The plaintiffs in the equity action
are William ". Conley, with a claim
OF 100000, representing the amount
of stock he holds: Alexander J. hind
say, $4,000 on an open account for
materials sold and delivered, and j
Harris Harding, holder of 10000
worth Of bonds
In No Danger.
An exceptionally voluble golfer was
valniy endeavoring to move n ball
with his driver Pausing in his eff.
forts, he espied watching him. ri
small girl holding by the hand still
smaller boy. Immediately visions OF
flying golf balls flashed across his
mind II
You ought NOT to bring your little
brother" he cautioned the girl.
oh It's all right. sir" came the
reply, "Hhe's stone "--Philadel-
phia Record