New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-18
Receivership
Asked for Aetna
Explosives Co,
Action Taken by Creditors
to Forestall Threat
ened Suits


ened Suits
Appointment OF receivers 20 carry on
the business Of the Aetna Explosives
Company was asked in a creditors suit
I'm equity brought late yesterday in
the United States District Court a.
New York by the Grassclli Chemical
Company, Of Cleveland. The action is
based on a claim amounting 10 SOB
655.80 for merchandise and materials,
payment for which has been refused.
The appointment Of receivers is asked
for. the complainant states, because
other creditors are pressing their
claims and threatening 10 bring suit,
and II the Aetna Explosives Company
should be compelled TO cease business
as the result OF judgments in such
suits all those holding claims against
it would be irrcparably injured.
Valuable Contracts
At all times since it, organization,
the complaint states, the defendant
has been engaged in the manufacture
or explosives for the Allied Powers Of
Europe and is now engaged in the
performance Of contracts for further
large quantities Of explosives which
arc Of vital importance in the prosecn-
ton Of the war.
These contracts, it is avcrred, are
among the most valuable Of the Aetna
Explosives assets, and 70 interfere
with the fuflmcnt Of them would he
altogether ruinous to the company.
The plants and other assets. the
creditors complaint states, arc OF such
a nature that their value depends
largely upon the continuance Of the
company as a going concern. n the
business should be interrupted the
value Of these properties would, IL f.
alleged, nc greatly impaired
Such a arrangement at this time Il
is further stated. would work a dctri-
mcnt 20 the public welfare by prevent
ing the delivery OF the explosives
called for I'm contracts with the Allies
and by cutting of a most important
source Of supply for explosives nee
essary 70 the United States.
The plaintiff asks that the receivers
he authorized TO Issue certificates 20
obtain funds necessary 70 continue tho
business. 80 that contracts now or
hand may be filed and that the cred
itors. stockholders and other persons
having claims be enioined from prose-
cutting suits At the same time. per-
mission for oil the other creditors to
intervene in the action brought by the
Grassolli Company IS asked.
Notes in Dispute
Notes given by A. J. NoHham, former
president Of the company. 10 Edward
". Bassick. in connection with COM
mission to be paid for cfectinC con-
tracts between the Aetna Explosives
Company and tho French government,
ON which Bassick has brought suit t.
recover over 100000, and another &C
tion brought by Herbert F. John, an
indorser for Bassick Of notes amount
ing 70 Sl4l.56 are among the pressing
claims cited in the complaint filed by
the Grasselli Company. These notes. it
is alleged. were given without author
ity Of the company. Similar suits have
been filed in the State Supreme Court
by the Lenpicr Trading Company and
ly Delaney T. Smith, as indorsers for
Bassick to recover S135,973 and SOL
931, respectively.
The complaint in addition explains
that the Aetna Explosives is further
indebted in excess of 100000 for
merchandise and for money borrowed
on notes, a great part Of which is past
due and the remainder soon TO become
due, and that the company has NOT
sufficient funds in hand 10 meet these
obligations.
The aggregate Of the defendants
property, the complaint explains. is, at
fair valuation, more than sufficient
in amount TO pay all its debts. but by
reason Of pending suits its credit has
been so impaired that it is unable to
meet its liabilities as they mature in
the ordinary course Of business or con-
duct its business in an efficient man.
ner
Counsel for the Aetna Explosives
Company submitted an answer to the
suit in which all the allegations Of the
complainant were admitted
Judge Julius VI. Mayer is expected
10 give his decision to-day in the mat
ter Of appointing receivers.