The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-09-20
LORRAINE CAR
RECEIVERSHIP
IS REQUESTED
Application to Be Filed by
President Of Company
Unable to Meet Outstanding
Obligations.
BUSINESS TO CONTINUE

q TeCelNeT IOI lQe Lorraine Cdr COLu-
nany will be made Wednesday by D. !
H. Cummings, president and general |
manager of the company. according to
an announcemtn made Tuesday.
Inability to meet outstanding obli- |
cations and liabilities greatly in ex-
cess Of assets is given as the reason |
for the action to have the affairs of
the company taken over.
The company is incorporated for
$1,500,000. This is distributed in
blocks of s150,O0O first preferred
stock; $S5o,Ooo second preferred
stock. and $1,ooO,000 common stock
The first preferred stock has all
been issued and is said to be pro-
tected by customers notes. Of the
second preferred stock $9S,500 has
been issued. 1t is unsecured and
worthless. About $4,000 worth of
this second preferred stock has been
sold in Richmond
Only $250,000 of the common stock
has been issued This is unsecured
and worthless, This is said to have
been distributed among the organic.
ers of the company.
The Lorraine Car company has been
engaged in the assembling of motor
hearses. The chassis were bought
from the Pilot Motor Car company and
the bodies from Fry Brothers COM
pany-now the Lorraine Realty COM
pany-and put together at the Lor-
raine Car company plant and sold to
undertakers over the country on
part payment basis.
Big Business Last Year.
Last year the company is said to
have done close to a million dollar
business. The scope of last years
business made the prospects for this
year appear exceedingly bright, ac-
cording to Mr.. Cummings, and an ex-
pansion was expected this year.
In place of the expansion the sales
dropped suddenly The sales force
was doubled in an effort to bring back
the demand for hearses. This only
added greatly to the expense of oper-
alton, it was stated
The primary cause of the failure of
the company was attributed to the too
expensive and extensive sales organi-
zation employed by the company and
the paying of too high rates and COM
missions to brokers for loans on paper
carried by the company
Outstanding Accounts
Some of the outstanding accounts
against the company which are totally
unsecured are held by the following
The First National bank of Richmond
s11.100; the Pilot Motor Car company
$4,000; the Cosmopolitan bank of Gin.
cinnati, $2,440, and miscellaneous cur
rent bills amounting to $4,000.
Mr.. Cummings has turned over his
house and household goods and ali
MS personal assets to protect these
accounts against the company.
The Business Mems Remedial loar
company has claims against the com
pany of about $4,000, which are Sc
cured by chattel mortgages
To Continue Business
Steps have already been taken By
certain business interests to continue
the manufacturing of hearses here il
Richmond. A local manufacturer prob
ably will assume the first preferred
stock of the company and anothe
manufacturer will take over the sale
organization.
These men state that they feel
good business has been formed and
good product produced. By continu
ing business on conservative basi
they feel that the industry can be pre-
served to the city.
The Lorraine Realty company whicl
was also organized by d. II. Cumming
recently is not involved in the receiy
ership asked for Wednesday. 1t is
company formed TO take over the plan
of Fry Brothers for the manufacture
of hearse bodies. II was incorporate,
he
machinery connected with the Lol
raine Car company is said to be owne
by the Lorraine Realty company
The history of the Lorraine Ca
company is an interesting one. Thre
years ago D. II. Cummings and C. c
Snyder came TO Richmond from Cir
cinnati and formed the company. A
the time of their coming TO Richmon
they had less than a hundred dollar
each, ii is stated.
Finance Lack Hinders.
Mr. Cummings states that through
out the history of the company tn
one thing that has hampered their d,
velopment has been the lack of f
nances.
One of the strange features abor
the failure of the company is the fac
that six months ago the financis
statement of the company Shove
that the assets were 100000 is exces
of the liabilities.
As late as September, this year, th
leading mercantile rating agencie
gave the company a credit rating
from s150,000 to 100000 On tn
statement considerable credit was e
tended. it is stated.
During the past few weeks a COZ
siderable number of actions on a
counts have been filed against ii
company in the local courts Sever;
of these have been met up until Tue
dav. attorneys stated.
c. o. Snyder, who was one of II
original organizers of the compan
withdrew six months ago. He receive
second preferred stock for his share
the company This stock is insecure
according to the reports Tuesday.
SENATOR KELLOGG IN RACE
ST. PAUL. Mimi. Sept 20.-FraI