New-York tribune., 1921-11-27
WHY'S C,orp'n
Placed in Hands
OF Receivers
Ancillary Action Here Fol.
lows Creditors Suit in To-
ledo by Ohio Trust Com.
pany to Recover Funds

Judge Knox. in the United States
District Court, yesterday appointed
Clements, o. Minninger and Frank p.
Kennison, of Toledo. receivers of the
WHY'S Corporation in this district, with
bonds OF $4,000. This action followed
the bringing of creditors receiver
ship suit In the Federal Court for the
Northern District OF Ohio.
;. Ihe Ohlo Savings Bank and Trust
Company is the plaintiff in the orig
mai proceedings brought In Ohio and
IN the ancillary proceedings instituted
here. The action is based on q ninety
DAY note for Sl50000 dated October l2.
1920. on which the Ohio Savings Bank
and Trust Company says that S100,2l3
IS due and payable, with 6 per cent in
terest since January 10 last.
The Willys Corporation. it was stated
IN the complaint, has 100000 shares
o. common stock of no par value.
Si5oo0,00o cumulative per cent 6rst
preferred stock and $4,000, 900 cumula-
tive per cent stock. The company is
engaged in the manufacture of electric
stare,ng ano lighting systems for auto
mobiles. In addition the company owns
Sl9s260.000 par value common stock of
the WHY'S Overland Company. and also
stock OF the Fisk Rubber Company and
: the Federal Rubber Company.
Not Over $la, ,0oo, 900
It was alleged in the complaint
against the WHY'S Corporation that its
indebtedness is not less than $lo,0O0,-
900 and not more than $4,000, ,000. 1t
was further stated that the company.
teriais and valuable assets, it is at the
present time without cash to pay it's
debt or continue its business.
John N Willys. president Of the
company. declared that the receiver
ship proceedings should be regarded by
all classes of creditors and stockhoid-
ers as protective of their interests.
These proceedings against the
WHY'S Corporation" he said. "do not
affect the WHY'S Owe rland Company in
any way. The Willys Overland Com
pany is ore Of the best known auto
mobile companies in the country ard
its position is sound Its business is
satisfactory under the conditions OF to-
day and is showing constant improve
ment.
Reorganization Plans
''In view of the inability of the pro-
tective committees representing cred t.
ors and stockholders of the WHY'S Cor
poration to get together on plan of
reorganization satisfactory to all and
on account of the daily increasing dam
ger of hostile action by Individual cred
itors or others. the board has deemed it
best not to oppose the application of
the Ohio Savings Bank & Trust Com
pany for receiver. A plan of re or
ganization which will be fair to every
body can now be worked out under the
protection of the court.
"The embarrassment of the WHY'S
Corporation came about when it was
overtaken by business depression
year ago with its ne wautomobile plant
at Elizabeth, N. j. in an unfinished
condition. | feel confident that in the
remaining large value of its assets and
IN proved power of it's operating units
it has resources with which. if given
reason Bile time, the corporation can
take care OF all it's creditors and pre-
serve substantial equities for ali classes
Of stockholders.
Il particularly urge stockholders not
to sacrifice their investments but to
have patience and hold on while the
situation is being worked out. The
return of normal business conditions
will see q great Improvement in the
condition of the corp ration"