Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1915-04-09
Receivers Named to Take
Charge of Affairs of
Large Concern
TWO BLOCKS OCCUPIED
Claimed Liabilities Are $12,-
100000, and Assets, Minus
Realty, Only ST. 900, 900.

New York, April 9.-Federal Judge
Hand today appointed Walter V
Noyse and William y Marble receiv-
ers for the J. B. Greenhut company.
which operate two large department
stores in this city. The receivership
was applied for in a suit by the
Monmouth Securities company and
the defendant consented TO the ap-
pointment. The receivers bonds
We're fixed at 100000
The Greenhut company had an ou-
thorized and outstanding capital
stock of $4,000. 600 and a bond issue
of $6.000,O0O sinking fund gold six
per cent bonds The assets were
listed in the complaint at $1,000, 900
and the liabilities at $3,5O0.O00, not in
Guiding mortgage liabilities amount
ing approximately to $9,O0O,OO0.
The original firm of Greenhut &
Co was incorporated in 1910. Later
it consolidated with Siegel, Cooper &
Co, under the name Of the Greenhut-
Siegel-Cooper company. The stores,
known as the Siegel-Cooper stores, oc-
cupy both blocks on Sixth avenue
between Eighteenth and Nineteenth
streets. ]. B. Greenhut is president
of the firm and treasurer OF the Mon
mouth Securities company.
The suit is based upon an indebted
ness of $1,000 alleged due the secur-
tiles company and representing mon
ey loaned the Greenhut company A
few moments after appointment Of the
receivers an involuntary petition in
bankruptcy was filed against the COM
pany by three creditors with claims
aggregating $4,000 In the petition
of the creditors It IS alleged the com
pany's liabilities. mostly old debts, ag-
gregate Approximately $4,000 900 and
that the assets. exclusive of real es-
tate. do not exceed s1.0O0,OOO.
To BE Recognized.
Benjamin Paskus. counsel for the
]. b. Greenhut company, asserted the
liabilities were about S3,500,00O and
the assets $1,000, 600, OF which $4,000
600 was in quick assets, so-called. and
So 600 00O in fixtures and stable equip
ments. Two mortgages on real estate
are owned by the firm, according 10
the petition. The mortgages, Paskus
said, are offset by bonds, some OF
which are owned in Europe. The cur
rent liabilities. Paskus said, would be
offset by merchandise and outstand-
ing accounts. The firm would be re-
Paskus stated, the action
being a friendly proceeding.
The firm had virtually closed It's
private bank conducted for the con
renience of customers, Paskus said,
to depositors S5.000,OOO dur
ng the last year. Paskus' statement
N part is. The company was not
Dnly affected by the general depres-
sion in business the past year, but
has been seriously handicapped by
he failure of the Siegel enterprise.
owing TO the fact that Siegel's name
was included in the corporate title of
he company. At the time of the fail
Ire this caused a general impress
sion among the public that the enter
lrises were connected. This was evil
fenced by a run of depositors on the
,auk conducted by the Greenhut store
At the time of the SiegeI failure the
ireenhut hank had $4,000 depositors,
practically all being customers of the
store, and many of limited means.
Jnder the circumstances it was nee
sssary for Greenhut to finance the
aising OF large sums in order TO pay
very depositor in full"
The business will be continued un-
Ter the receivership. Charles A.
,ooper is vice president and Jerome
;iegel director in the company.
Banking Circles Not Surprised.
Attorney Meyers for the three credi-
ors who fled the involuntary petition
4 bankruptcy. asserted he represented
together about one hundred credi-
ors, whose claims aggregated between
half million to a million. He viii in
erpose no objection to reorganiza-l
ion If they secure the interests of his
lients The failure caused no sur,
rise in banking circles, where the em-'
arrassment was matter of general