Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-04-09
Big New York Department
Store Financially
Embarrassed.
$4,000, 900 CONCERN
4. IN NEED OF CASH
Assets 40 Scheduled Exceed Liabilities
Three Creditors Bring Proceedings
in Bankruptcy, Alleging Liabilities
Will Exceed $4,000, 900, With Assets
Half That Sum - Closely Identified
With sieseI & Cooper.

WIN ol0SoS q SSVPoSs
New York, April 9.-Receivers we're
appointed today for the j. B. Greenhut
which operates large de-
partment store in this city.
The receivership was applied for In
a suit brought by the Monmouth Sc
curities Company. and the defendant
to the appointment. Walter
G. Noyes and William A. Marble were
named as receivers by the court. Their
bonds was fixed at 100000.
Involved With siesei Cooper.
The j. B. Greenhut Company has an
and outstanding capital
stock Of s6,OO0,000 and bond issue Of
$6000,00O sinking fund gold bonds. Un-
der the bond issue S15O,o00 worth OF
the bonds were to be retired annual
ly. The Central Trust Company IS
trustee. Two changes have been made
since the Incorporation of the original
firm, Nov. 16, 1916! The first change
was when Greenhut & Co. became con-
solidated with Siegel-Cooper Company,
under the name Of Greenhut, Siegel,
Cooper Company. In May of last year
the firm name was changed to the J.
B. Greenhut Company. J. B. Greenhut
is president of the firm.
- The department store conducted by
the company, long known as the
esel-Cooper store, occupies both
blocks on Sixth avenue between
and Nineteenth streets.
Paper Assets Exceed Liabilities.
Assets Of the store are listed in the
complaint at $7,465,419. including mers
chandise, cash and accounts receivable.
The liabilities, it is stated, aggregate
$3,513,060. not including the mortgage
amounting to approximate
" $3.50. 900.
! J. b. Grenehut, president OF the firm,
is treasurer of the Monmouth Securi-
ties Company, upon whose application
the receivers were appointed. The suit
Is based upon Indebtedness Of approxi-
mately 100000 alleged to be due the
William A. Marble, one Of the re-
ceivers. is a vice president Of the Mer-
chants Association Of this city. Mr..
Noyes is former judge Of the federal
district court Of this city.
Bankruptcy Proceedings Started.
The Greenhut company conducted a
private bank for its customers. Decem-
ber last the. firm gave notice they in
tended to withdraw from the banking
business. 1t is believed all depositors
availed themselves of the opportunity
to withdraw their savings.
Three creditors later filed bank
ruptcy proceedings against the COM
ThoNy i'm tho a nvrll.
sive of real estate, do not exceed
Sc, 100000 and the liabilities exceed
$4,000, 900.
the last year and inability Of the firm
to meet immediate pressing obligations
were assigned as reasons for seeking
the receivership.
Business TO Be Reoroanized.
BENJAMIN g. Paskus, Of counsel for
the ]. B. Greenhut Company. asserted
that the liabilities were about $3,500,000
and assets about $7.000.000. The firm
had virtually closed It's banking busi-
ness. he said, and every depositor has
been paid in full. Without question
the business will be reorganized, Mr..
Paskus asserted. He issued a state-
ment which says:
"The action taken today is friend
ly proceeding in equity and is for the
purpose of conserving the assets Of
the company and to continue the busi-
ness without interruption during the
time Of bringing about an equitable
settlement of the liabilities.
'eThe papers filed today show that
exclusive of the real estate the other
assets Of the company amount to more
than double the current liabilities.
Hurt by Siegel Failure.
"The company had to meet adverse
conditions during the past year which
were beyond its control. 1t was
seriously handicapped by the failure
of the Siegel enterprise, owing to the
fact that the Siegel name was included
in the corporate title Of the company
at the time of that failure. This
caused the belief that the enterprises
were connected. This created run
on the bank at the Greenhut store.
Captain Greenhut always has been
ready to assist the company financially
and he is today the largest individual
creditor for moneys advanced to the
company.
''The financial condition Of the COM
pany will be made absolutely sound, II
it is possible for an amicable agree
ment to bring about an adjustment
with the holders of the real estate
bonds
Controlled by G.eenhuts.
Officers OF the company are Joseph
G.. Greenhut, president: Charles A.
Cooper, vice president; Benedict j
Greenhut, treasurer, and Nelson w
Greenhut. secretary, all Of whom are
directors. The additional directors are
Jerome Siegel. BENJAMIN Hillman
Nathaniel Menken, Ell Wolfner and
Jacob NJ. Cohen.
Saul s. Meyers, attorney for the
three creditors. who filed the involun-
tary, petition In bankruptcy. asserted
he represented altogether about lot
creditors whose claims aggregate be.
tween $500, 600 and sl,000.e00.
The failure caused no surprise II
banking circles. New York financia