New-York tribune., 1921-12-28
ReceiverNaned
For Ingersoll
W atchConpany
Firm Adjudgcd Bankrupt
III Federal Court; Liza
bilities S3,OOO,OOO and
Assets Are So, 200, 900
Reorganization Planned
Increase in Price Be-
lieved Responsible for
the Decrease in Sales

Robert II Ingersol! & Brother origi-
rator Of the dollar watch, were ad-
Judged bankrupt in the Federal Dis
trict Court yesterday and went into the
hands of a receiver. The concern con-
sented in both proceedings and is
understood 60 be cooperating with the
receiver and Il creditors committee on a
reorganization plan which will enable
It to resume business in its own name.
4 draft of this plan has been drawn
and ar effort to terminate the re-
ceivership within four weeks is to be
made, according 10 information ob-
tanned at the close of a meeting yes
terday This was attended by Robert
II. and Charles Fl. Ingersoi, president
and secretary, respectively, of the
watch company; Edward S. II. Childs,
who has been appointed receiver. and
counsel for the petitioni1g creditors
and the Ingersols.
Banks File Petition
order in bankruptcy as"' after ts"sa an inS ins
voluntary petition had been filed
by the National City Bank, the
Chase National Bank and Hathaway,
Smith. Folds & Co. whose respective
claims are set forth as more than
100000, 100000 and $4,000, all on
uIlSS. nS llSUiltlSS OF tHC company
arc plsced at S3,000,000, and its assets
at s2,000,000, exclusive Of the value of
It's good will. Accompanying the peti-
tIon was an affidavit signed by the
lngersoll brothers admitting their. in
ability to pay and their willingness TO
be adjudged bankrupt.
The petition for the appointment of
g receiver was signed only by Hatha-
way, Smith. Folds & Co. Judge Hand
appointed Mr.. Childs, lawyer. of SO
Wall Street, with a bond of $25 900
Mr.. Childs said later in the day there
would be no change in the management
OF the business at present and no cut
among the employees. AS to the posi-
bility ofra price reduction he said that
he had not yet had time to take up the
question.
Increase Is Paid
The increase in the price of the In
gersoli watches after the outbreak of
the war was the cause most frequently
suggested yesterday to explain the
concerns financial difficulties. The
Yankee the cheapest timepiecc bear
ing the ingerson name, rose from 81 to
$3.50, at which latter figure it sold
carly this year. The price of other
models rose correspondingly and it was
thought that the demand for the
NoSCutc UcG iVL IiSfU 20 Ilcol Lnc
price. The correctness of this suppo>
sition was denied yesterday afternoon,
however, by person in close touch
with the Ingersoll business, who de-
clared there had been no falling Off in
sales last year He admitted however,
that the watch market had been heavily
oversold and that this year business
had fallen off heavily This individua
attributed the receivership TO made
quate capitalization, pointing out that
the liabilities were chiefly in street
paper and that most concerns would
have carried these debts on long term
notes. Many OF them were incurred. he
said, in extending the Ingersol bust
ness facilities.
"A bankruptcy receiycrship was used
instead CT an equity receivership," he
went on, "chiefy for economy. The
purpose of the proceedings is to sim
plify the funding of these obligations
and court help was made necessarily by
the fact that there are some 180 cred
itors, widely scattered whose unani-
nous consent would be necessary to
ehect reorganization out Of court"
Incorporation Probable
The Incorporation Of the Ingeraoll
business is expected to be one feature
Of the reorganiza ton. Although the
brothers haze seiG uetv-5o:: so GOO 600
aud 100000 watches IN the twenty
nine years since they entered business,
they have retained their original form
u 5rgsaiza.!oh ss a Joint stool. asso-
ciation under the laws of New York
State.
Their financial difficulties have been
matter of common knowledge since
May 3 of this year, when they ap-
fealed for the appointment of cred
Tors committee. II. c. Smith, J.eW.