The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-13
RUMELY FIRM FAILS
TO PAY ON LAST DAY
Period Of Grace Expires and
Big Company Now Faces
a Rcceivership.
SEEKS BREATHING SPELL
Bankers Offer Aid, but Future
Action Lies With the
Note Holders.
SEEKS BREATHING SPELL

The see 900. 900 NJ. Rumely Company.
manufacturer OF agricultural implements.
whose AFFAIRS have been the subject Of
talk In wall street for months. defaulted
yesterday on the interest due on Its notes
20 the value OF $iO,oo0.O0o. 1t was the
last OF the twelve days OF grace tho COM
pany had beyond the payment date for
the 100000 interest due March !.
Failure 10 pay this interest puts the
company face to face with the serious con-
sequences OF default, but with the chance
Of pulling out and saving Itself from the
receivershlp through a further gain In
time
Holders of So per cent. of the notes
have deposited them under an agreement
on plan TO save the compan, This plan Is
that $4,000 900 will be loaned to the COM
pany by bankers to meet its seasonal
needs, provided that 80 per cent. OF the
holders OF the $lo.0O0.00o notes agree to
extend the notes from March l. 1915. to
March I. 1915 Deposit of 100000 OF
the notes Is still necessary to make the
plan operative
Breathing Spell Expected.
This chance OF a breathing spell in
which Il may still pull its affairs together
lies in feature of the note indenture By
which It Is provided that on any failure
of interest or principal payment u VIII
REQUIRE action by holders OF 10 per cent
of the notes to put the company Into
receiyership. How fan a provision OF this
kind will hold good when put to the test
Is considered problemat;cal. but II Is ex-
pected by some of those prominent In the
affairs OF the company that II VIII at
least allow further time In which the re-
- Q I..., ..NNa cuur ~
60 make up the 90 per cent. OF the issue
required TO put the relief plan into oper-
alton may be deposited.
The attitude OF the members OF the note
holders committee headed by John w.
Piatten. president of the United states
Mortgage and Trust Company. reflected
the uncertain position the company Is In.
The committee confined Itself to the fol-
lowing statement:
'The Rumely convertible noteholders'
committee met this afternoon and post
poned definite action as to the extending
of the Rumely notes until Monday. March
16. Meanw lille the committee urges further
deposits of the notes"
Plans Are Uncertain.
The uncertainty Of the committee re-
Garding future action was evidenced by
Chauncey IL. Murphey, secretary OF the
committee. who said
~ know as much about Rumely matters
~ do whether II is raining or showing
outside
Howard C. Smith of Hathaway. Smith,
Folds Co. acting chairman of the COM
mittee in the absence OF Mr.. Platten said
the Rumely company was In default. but
that he knew nothing Of a movement on
the part of any dissenting noteholders to
put 1t into the hands of a receiver.
The company is in similar position to
The Boston and Maine, which defaulted on
the principal of its s10.000.000 notes that
were due and unpaid February 3. In the
Boston and Maine case attachment wrts
were issued TO noteholdcrs who sued. a
procedure which is expected to be followed
IN the Rumely case.