The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1921-11-28
GARY MOTOR
TRUCK Cd.
|NSOLVENT
". H. 0'DonneIl Asks for Re-
ceiver Saying Company Owes
Half Million Dollars

Alleging that the company Is in
solvent and owes close to half mil
lion doliRrs, William H. ODonneH OF
Gary today asked that a receiver be
named for the Gary Motor Truck Co
Mr.. ODonnaIs petition was filed by
Attorneys Gavit. Hall s. Smith IN
Room Of the Hammond superior
court.
In his preliminary statement ODon-
nell says that the corporation had an
authorized common capital stock OF
100000 of which $61b.o0o had been
issued and is outstanding. The auth
orized preferred capital stock is S7S,-
600 and ss0,s00 of this has been Issued.
The plaintiff holds 125 shares of pre-
ferred stock with a par value of 500
each. and 1000 shares of common
stock with par value Of SO each.
He says the preferred stock was
supposed to draw annual dividends.
payable in quarterly installments OF
ono and three-fourths per cent. In
July 1920 tho directors declared &
dividend OF two and one-half pereent
on the common stock. This was paid
to some says Mr.. O'Donnel but not
to him. He then held 1929 shares. He
said no reason was given for others
being given preferment over him ex-
cept that the company was not able
financially to pay all of the common
stockholders. He has s262.25 due in
dividends.
No dividends were declared on the
preferred stock in December, March.
June or September OF the last twelve
months.
The plaintin then goes into the con-
dition of the concern. He says the
plant exclusive of the real estate on
which 1t Is situated represents a cost
OF $4,000. Fire insurance premiums
have not been paid. Taxes amounting
to t1o,e21.30 are due and the property
is subject TO sale in February unless
they are paid. The real estate has
already been sold twice in collecting
city and county taxes and has not been
redeemed. The income tax is long
past due.
Books show loss In operation of
$4,000 from January 1 to October 81,
says the petition, but the true loss has
been minimized by lifting the real
estate at s63.6s2. whereas IT cost SAL
900 and has had no additional i'm
provements.
When the last trial balance was had
the books showed deficit of s164317.-
carry as asset an item of good will
TO s1Ss,324.s1. Many truck
parts are also listed in the inventory
which are practically worthless except
for scrap iron as the models for which
they were made are no longer being
built.
Going further into the debts. the pc
tition shows that the corpora ion
owes $S3,46s on notes to trade creci-
tors: s7o23s on notes to banks; SILL
2o5 on accounts payable; 5000 on
payroll overdue: $4,000 in continE-
ent liabilities: $500 on a mortgage
which is overdue. and $4,000 on out
bonds which are secured by
a trust deed held by the Chicago Title
& Trust Co.
The Chicago Title & Trust Co. Is
made a party to the suit and the
plaintiff asks that it be declared to
have no lien on the property.
In October Il is said the plant made
six trucks and sold eight and the No
vember business is expected to be
even smaller.
President Dawson Is said to be
drawing $4,000 per year as salary
while another officer gets $3.50 per
month and a. commission
ODonnell declares that the serv-
ces OF the officers arc not worth the
salaries paid and adds that the bust
ness has decreased until the overhead
and salaries equal the gross sales. He
asks that a receiver be appointed to
handle the plant until II can be sold
Ind the receipts distributed among the
creditors