New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-01-20
BIG DEBTS SWAMP
RUMELY COMPANY
S3O.OOO,000 Agricultural
Machinery Concern in
Receivers Hands.
UNABLE TO MEET
NOTES COMING DUE
Failure Laid to European War,
DWindling Business and
Lack of Capital.

Indianapolis, Jan. lS.-Ihe appoint
ment OF Finley p. Mount, an Indian
apois attorney. as sole receiver for
the NJ. Rumeiy Company. a 100000
agricultural machinery manufacturing
concern, By Judge Anderson. in the
United States District Court here this
afternoon. was over the recommends
lions Of the creditors. who asked that
Clarence =. Funk, Of Chicago. presi-
cent OF the company. and stephen b.
Fleming. o. Fort Wayne. be named
joint receivers.
THE representatives % all the cred
itors, including the banks. noteho .ders
and stockholders" reads statement
issued by counsel FOR the Bankers
Trust Company Of New York. trustee
for the notehoidcrs and for the note
holders committee. were unanimous
IN requesting the appointment Of hr.
Funk and Mr.. Fleming. but the court,
following its custom IN such matters,
declined 90 appoint Mr. Funk, as he Is
4 nonresident Of the state, and ap-
pointed as sole receiver Mr.. Mount.
Mr. Mount bears an excellent reputs-
ton and has had experience IN re
ownership work
The abnormal financial conditions
resulting from the European war and
the refusal o. the holders OF sl,3OO,OOO
% It's debenture notes 10 grant an eN-
tension are held responsible for the re-
ownership in a statement issued by
Mr. Funk late to-day.
When. 70 the spring OF 1914" says
the statement. "the management re-
ceived assurances OF the necessary
support from the banks. 10 undertook
% carry the business along another
year, with the distinct announcement,
however. that 10 could not be carried
through 1915 unless the balance OF the
two-vcar notes consented 20 the eX-
tension. Notwithstanding repeated ap-
meals on The part OF the noteholders
committee. and the management. most
Of the holders OF the uneNtended notes
have refused 10 come into the extern
sion. This means that under the terms
OF the extension agreement the entire
ISSUE Of S10.O00,O00 may be declared
due on March 1 next
In the last year and hall the
management has paid OF upward or
$1,000. 600 Of debts, and. IN addition
the company has compromised and DIS
posed OF jobbiug contracts made with
outside manufacturers amounting TO
nearly $4,000 OOO
IF the security holders will co-oper-
ale in bringing about O reorganization
on sound lines. and 90 so promptly, so
that the damage 70 the goodwin OF
the business from recelvershlp may
be minimized, ! have no doubt tnat
bv patient and persistent EFFORT the
business can be 50 re-estaolsned as
10 provide 100 cents on the dollar Tor
q no sides.
.Tf such action is not forthcoming.
ard the business is not promptly re-
orcanized. the only alternative Will be
Gcuidation. which will require several
vears and result in very serious loss
10 creditors and in completely Wiplng
out the stock
Ju6ce Anderson fixed Mr.. Mounts
hond As receiver a. $4,000 and or
dered him 10 continue the operation
az the concern until further notce
from the court.
Following the announcement from
Indianapolis yesterday that receiver
for the W. Rumely Company had been
appointed preparations were begun
here 10 organize three committees 20
rrotect the interests. respectively, OF
the noteholders and the preferred and
common stock holders.
The decision TO seek recelvership,
New York bankers said, was directly
due 20 the inability Of the manage
ment 10 pay off the uneXtended portion
Of the notes maturing March !, amount
ing 10 about S1,300,OO0. A large por-
ton Of these securities are held in
Germany and Holland, and all efforts
20 secure consent TO an extension
failed
Poor business last year contributed
largely 10 putting the company In us
present position. The policy OF the
company in accepting more contracts
than IL had capital 20 take care Of was
IN important factor. Despite heavy
issues Of stock. the concern was con-
tinually short Of working capital. and
m February, 1918. Sl0O,OOO,OOO per
cent notes we're issued The notes were
convertible into common stock, and 10
provide for such conversion the share
holders authorized an increase Of the
common capital from S12,000,000 to
S22.000.000. The amount OF common
outstanding. according 10 the com
pany's last report, was Sl1.S02,8O0, and
the preferred was s9.750,0O0.
The VI. Rumely Company, combina-
ton OF threshing machine and tractor
engine manufacturing companies, was
launched in Wall Street in 1912. Listed
on the Stock Exchange in October, the
common shares a few days later sold
AZ 1O1 and the preferred above l03.
Yesterday the common closed AZ IA
and the preferred at Q asked, with no
bid.
The Stock Exchange committee on
minimum prices placed Rumely pre-
ferred on the free list. That is, be
ginning to-day. 10 may be traded in