Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-04-09
GREENHUT COMPANY,
OF NEW YORK, PLACED
IN RECEIVERS HANDS
Large Dry Goods Firm
Forced Into Court as Re-
suit of Siegel Failure of
Last Year - Business to
Be Continued.

NEW YORK April s.--The J. y. Green
hut Company. dry goods house, wal
placed IN the hands OF receivers today
when walter c. Noyes and W. A. Markle
we're appointed receivers by Federal
Judge Hand. The bill OF complaint was
brought BY the Monmouth Securities Com
psny. The company consented to the re.
celvership. Bonds of the receivers were
liked at 100000 each The receivers were
authorized to continue the business Of tho
company under its present name.
II Is set forth In the complaint that tho
assets of the company are sIi6e4ig, and
liabilities SS,5ls,060, exclusive OF underly.
ing mortgages. There are two mortgages
ON the compehy's buildings, one for ST.
100000 and the other for $1,000, 0OO The
complainant company declares It Ia a
creditor 70 the amount of more than
s200oO0.
The j. B. Cireenhut Company was In
corporated under the laws of the State
of New York on November i6. 1910. Tho
corporation was a consolidation of Green
hut & Co, and the Siegel Cooper COM
pany. The present title was adopted In
May, 1914. II had an authorized outstand-
ing issue of s60O0,0OO CO nital stock and
S0O0000 sinking fund gold 6 per cent,
bonds.
The officers OF the ]. b. Greenhut Com
pany are: Joseph b. Greenhut, president;
Charles A. Cooper. vice president: Ben
edict j. Greenhut. treasurer; Nelson w.
Greenhut, secretary; Jerome Siegel, Zen
Hillman, Nathan Menken, Ely Wolfner
and Jacob c. Cohen, directors.
Immediately following Judge Hands
appointment of the receivers an involun-
tary petition In bankruptcy against the
j. b. Greenhut Company was filed by
three other creditors. Frederick Butter
field & Co., Wolf-Erskine and Belden
Brothers e. Co
The company did a business last year
of $4,000 900.
A statement given out by Rose &
PaslSus. says in part:
''The action taken today is a friendly
proceeding in equity. and Is for the pur-
pose of conserving the assets of the COM
pany, and to enable the continuance If
the company. The papers filed today
show that, exclusive of real estate, the
other assets of the company on March 81,
1915, mount to more than double the
total liabilities.
"The company had to meet adverse con-
ditions during the past year, which were
beyond their control 1t was not only
affected by the general depression of busl-
ness. but was seriously handicapped by
the failure of the Sege enterprises. owing
to the fact that the Siegel name was in
cluded in the corporate name of the COM
pany, and this caused a general impress
sion on the part of the public that the
enterprises were connected. This was
especially evident by the run of disturbed !
depositors of the bank which was con |
Quoted in the Greenhut store At the |
time of the Siegel failure the bank con- !
Quoted by the SieEel store had about |
5000 depositors, practically all being GUS /
toners OF the store. Under the circum-
stances 1t was necessary for Captain
Greenhut TO finance the raising of large |
sums Of mohey in order to enable the
bank to pay every deposItor in full on
,1nasmuch as the securities of the
bank Gould not be marketed speedily,
owing to the general business depression.
As the result of his efforts, every deposit
tor of the bank had been paid 4n-fulI. -