Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-04-30
RECEIVERS NAMED
FOR UNION STORES
COOPERATIVE Concern, Launched
With Promise, Is Forced
to the Wall.
LIABILITIES TOTAL $4,000
Against This Amount Store Has
Stock Worth at Inventory
About $1,000.

upon the Application or the board OF
directors, who set forth In their bill
that there is no reasonable hope of
successfully conducting the business in
the future. Judge Moncure. or the
Chancery Court. yesterday appointed
receivers to take charge OF tho busi :
ness Of the Union Stores. Inc. naming
3. f. Dew, secretarytreasurer OF the
concern, and Attorney b. Rand Well
ford. as the receivers.
The receivers qualified at once. fur
nishng the $4,000 bond required of
each By the court. with the American
Surety Company. of New York. Under
tho order entered by Judge Moncure.
they will proceed Immediately to take
an inventory OF the concerns assets
and liabilities and submit n report and
recommendation to the Chancery Court.
BUSINESS WORLD HAD
EXPECTED RECEIvERSHT
In business circles tho reccivership
had been expected for some time. It
was generally known that the Union
Stores was losing instead of making
money. and that n drastic rearrangc-
mont OF It's affairs was impending.
Directors OF the concern yesterday at
tributed the rcceivership to the failure
tho business to patronize their own en-
terprise. and to the inability of tho
management TO collect for n large pro-
portion of tho $4,000 in stock which
had been subscribed
The decision 10 apply for n receiver
ship was reached by the board of di-
rectors at meeting held Tuesday
night at this meeting the directors
adopted resolution committing them
selves to apply for Il rcceivcrship. be
cause of unfavorablc business condi-
tions and tho failure OF the corporation
to realize the purpose for which 1t was
formed" The resolution continued:
There appears TO be no hope Of sue
cessfully conducting the business, nor
OF being able to get quorum for a
stockholder.' meeting. and the direc-
y prs. the" efore. feel 1t to be their plain
suty TO tho stockholders and creditors
tso have the affairs OF the corporation
.tiiquidated or administered In such
manner as to diminish as far as pos
Isible the injury to all concerned"
DIRECTORS APPLY TO
COURT FOR RELIEF
In conformity with this sentiment,
the directors. through their attorney,
Joseph c. Taylor. fled bin in the
yesterday morning. asking for the ap-
pointment OF receivers The applica-
tion to Judge Moncure was signed by
the following directors: w. D. Duke.
T. o. Sandy. c. =. Cadot. c. ID. Cole
man, ]. A. Connolly. George w. Bahlke.
r. T. Bowden. ]. II. Chappell. G. II.
Boschen. j. a. Hutcheson. John l.. Rag
land, L. l.. Schcrer, w. w. Baker, w.
c. Schmidt and y. T. Dew.
According TO the bill. the Union
Stores is indebted to various or EDITORS
in the aggregate sum of $4,000 It's
assets. consisting of a stock of
groceries and general merchandise. are
estimated to be worth between $4,000
and $1,000 at inventory. The store,
located at Seventh and Franklin
Streets. is equipped with valuable Ak
.ures. but tho title to these rests with
the American Furniture and Fixture
Company.
The bill informs tho court that 1t
has been found impossible to get any
thing like n quorum OF tho $500 stock
holders OF the concern. and that pay
par value stock subscribed for is long
st due.
BILL ASSERTS STORE
IS NOT INSOLVENT
Section OF the bill asserts that
the Union Stores lis not insolvent
within the meaning OF the bankruptcy
act. because the aggregate of It's prop
erty at fair valuation is more than
sufficient In amount to pay all Its debts.
Nevertheless. while there are at this
time ample assets. your complainants
believe, to meet all the obligations of
said corporation. yet the business has
always been. and is now being, con-
ducted at loss. and your complainants
cannot see any reasonable hope of sue
cessfully conducting the business in
the future"
The ample assets" to which refer
ence Is made In this section are not
described In greater detail. Since the
inventory value of the stock is placed
at between $4,000 and $1,000. 1t was as
sumed that the assets" referred to are
the outstanding stock subscriptions,
for tho collection OF which a number
OF actions are pending in the Civil
Justices Court
The directors ask in their petition
that n receiver be appointed to collect
and realize upon the concerns assets
and distribute tho proceeds equitably
among those entitled to them
DELIEVE SOMETHING
MAY YET DE SAVED
III this be DONE" the bill asserts,
your complainants believe that some
thing may be saved to the stockholders
on their stock subscriptions, but, IL
not. and your complainants allow pres
ent conditions to continue. they fear
that the result Will be n loss to the
stockholders"
Union Stores stock is widely dis
tributed in this city. The company
was organized on October 13, 1913, and
an extensive stock selling campaign
was conducted before the business
was opened. Much Of the stock was
CONTINUED on Tenth Page0