The New York herald., 1921-03-17
EXPORTING FIRM IN
6 MILLION FAILURE
Receiver Named in United
States Court for Castor,
Williams & Wigmore.
WAR PROFITS WERE HUGE
Failure to Collect From Rus
sia for Supplies Big Factor
in Troubles.

Receivers were appointed late yes
terday afternoon in the United States
District Court for the firm of CASTOR.
Williams & Wigmore. Inc, ranked as
one of the largest exporting and i'm
porting companies in the United States
and known during the war as buying
agents for several of the allied govern
ments. 1t has offices in 100 West
Forty-first street. The firm is said to
have liabilities of approximately
porate stock in the parent and sub
sidiary corporations. merchandise and
vessels under charter. The amount of
the assets could not be determined.
Those familiar with corporation affairs
said the value would be difficult to de-
termine at the present time and re-
fused to name figure.
The appointment of receivers was
made in an equity suit brought by the
Sumner company State of Washing
ton machinery corporation, which has
a claim of 100000 against the defend
ant corporation. Judge Julius NJ.
Mayer appointed former Gov. Ben
jamin b. Odell and former Judge Van
Vechten Veeder as receivers.
Castor. williams & Wigmore. Inc,
is said to have made huge profits from
war contracts with the Allies. II trans
acted a total OF nearly sl5,ooo.oo0 gross
business during the fiscal year which
ended April 80, 1917. Fall in the value
Of corporate stock, inability TO collect
from the Soviet Government for supplies
furnished to the Imperial and Kerensky
Governments during the war and the
difficult readjustment period following
tae coming Of peace are said to have
caused the financial difficulties OF the
corporation.
List OF Liabilities.
The liabilities listed in the creditors
complaint show the following approx
mate figures: ,3.5oo,oo0 owing TO
banks. sl.000.oo0 OF 6 per cent notes,
due and payable on April 10; s1.ooo,ooO
in contingent liabilities and 100000 In
unpaid merchandise claims.
The receivership follows repeated at
tempts to rearrange the affairs OF the
company in n manner which would care
for its obligations and protect the in
terests Of the stockholders. In August.
1920, as a result OF Russian losses and
losses incident 70 the decline IN the for
eign exchange market. the annual re-
port OF the corporation made a poor
showing. The report disclosed that after
payment Of all charges and other liabili-
ties there was a deficit OF si.04I.16e.
against profit In the preceding year OF
T.262, +02 The directors Immediately
began a plan for readjustment OF the
capital of the company.
One plan which the company under
took was the recapitalization on
lower plane. While the stock OF the
company had no par value, the de-
clared capital wan s12.0O.000 and the
directors planned 10 reduce this by
$4,000 thus eliminating 10000 from
he balance sheot and enabling Il 10
reduce the profit and loss deficit which
had accumulated b. that amount.
Later, when tho situation became
worse. the corporation started work oil
tit plan OF forming Il new company 20
take over completely tic Castor. Will
Jams a Wigmore ganization. II was
planned 70 sell the new stock at $40
snare, with CASTOR, Williams & Wig
more stockholders. OF course. given the
preference IN subscribing. Ii was hoped
that X the shareholders would subscribe
to the stock OF the proposed new COM
pany. the assets OF the old concern
could be liquidated at more ndvan-
tageous terms. These efforts came TO
little. however. and the receivorship
resulted.
Company Formed In 1915.
The company was formed IN April.
1916, 70 take over tho business OF a cor
poration ~ the sarnc title. which had
been Incorporated two years previously
II was organized to conduct general
export and import business with Eng
land. France Russia. Spain. Portugal.
italy. South Africa. China, Japan. Cuba
and South American countries.
CASTOR, Williams Wigmore, Inc.