The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1915-04-09
J. B. Greenhut Company
With Liabilities of $685.
66O and Assets of $7,644,-
419 in Receivers Hands.
ORGANIZED IN 1909
Business Depression and Re-
cent Failure of Siegel Com
pany Handicap Activity of
Big Concern.

NEW YORK, April 9.-The ]. B.
Greenhut company dry goods house
was placed in the hands of a receiver
today when Walter c. Noyes and Will
liam A Marble were appointed by Fed
eral Judge Hand. The bill of complaint
was brought by the Monmouth Secur-
tiles company. The company concent-
ed to the receivershfp.
In It's complaint IL Monmouth Sc
curities company states that it is credi-
tor to the amount of ov.-' $2OO,OOO.
Rose and Paskus, attorneys for the
tiles company. The company consent
of the company to the receivership.
Organized in 1909.
The J. B. Greenhut company was
incorporated under the laws of the
state Of New York in 1909. The COM
pany was a consolidation OF the Green
hut company and the Siegel Cooper
company. The name of the consoli-
dated company originally was the
Greenhut- t-Siegel-Cooper Company. but
the name was changed to the present
title in 1914 The company had an
authorized outstanding issue of $6,OOO,-
900 capital stock and $6,O00,O00 sinking
funds gold 6 per cent bond. The as
sets are $7,644,419 and liabilities $3,-
$4,000, exclusive of underlying mort
cages There are two mortgages on
the company's building. one for $780,
and the other for $1,2OO,OOO.
Admits Allegation.
In it's petition a reclvershlp the
Monmouth Securities company, In ad-
dition to it's claim of 100000, set
forth that the Greenhut company owed
many other obligations. which it was
unable to meet. In affidavits pertain
ing to the receivership Joseph B..
Greenhut and Benedict J. Greenhut ad-
mitted the allegations in the petition.
It is estimated that the Greenhut COM
pany did a $13,000,000 business last
year.
Attorneys for the company stated
that the proceedings were of friendly
nature to conserve the assets of the
company and prevent interruption OF
operations while an equitable adjust
ment of liabilities is being made and
a reorganization brought about.
The Greenhut company. in addition
to meeting adverse conditions through
a general depression of business, was
seriously handicapped by the failure
of the Siegel enterprises, because of
cluded in the corporate name of the
company Jerome Siegel was one OF
the directors.
An independent petition for involun-
tary bankruptcy also was filed by three
creditors. The banking department OF
the Greenhut company, which suffered
a run at the time of the Siegel col
lapse has virtually been liquidated,
about $5,00O,000 being paid off last
year. Banks hold about 100000 of
Greenhut paper The total liabilities
are about $3,5O0,000. and quick" as
sets aggregate $4,000,000. The COM
pany's business will be continued with
out interruption.
Exclusive of real estate the assets
are said to be double the total iabil-
tiles, according to the company's at
torneys. On the other hand, Samuel
S. Meyers, alto: ley for about one hun
dred creditors, said their claims were
between 100000 and $1,OO0,000, and
ADDED that the liabilities of the Green.
hut company would be about $12,00O,-
900, with assets of $6,000,000, exclusive
of real estate.