Every evening, Wilmington daily commercial., 1922-02-09
COZ Uni dA CRAPHOPHONE co.
CREDITORS ASK FOR RECEIVER:
LIABILITIES SET AT $22,9OO,O
aselsncy Is Alleged b Application Filed in the United
STATE. District Court Here Today, BY New Jersey
NeekAs|ders Hearing Setfor February II.

An application for receiver
shsr for tho Columbia. GRAPHIC.
nhon~ Manufacturing Company,
Delaware corporation. was maae
IN the Federal District Court this
morning by tho Universal Sc
eur''ies Company. cwncra OF 1000
shares VI common stock; May ".
sh~ra. owner ~ i2ss shares. and
Henry W. Runysn. owner OF 275
sharcs. all of Jersey city.
insolvency 10 alleged. and tho
amount Of liabilities is put at sis,.
100000 To banks and financial
creditors. In addition TO ss.ooo.o 900
to merchandise and other crcdi.
tors.
No lissinE OF assets IL made,
hut the Inference of the analysis
~ the ccmpsny's Affairs is that
the, are very small.
Judge Uuwh NJ. Morris issued
an order setting down the case for
hearing ON February II.
The general afs,dsvlt charges tha
enc increase In the husinc.s of tn
defendant hss NJ no time been proper
''orntc To the cnlsrsemcnts of IN
capital stock, and the making Of loan
and that since tho middle of tho yea
eso this has hccn steadily decreasing
rhis is reflected I'm the price of tn
stock IN tho open market which ha
declined f,om t5s two years ago &
ti.rh last month.
There are stated TO he outs,andinl
ts.sssfsi " preferred stock OF sio'
par value. and si.2es.2se 10 common
stock of no par value.
N~s'dcs a plant az bridgeport. Con
n~,ticut. there l. another n, Eas
Baltimore cn which sssoo ooo IN
hcen expended. which Is not now q
ire. and another in Toronto. Canada
costing $500 ooo. nlro not In use.
lease fot eight years of eight ncor
~ the Gotham National Bank Build
ing on Columbus Circle. New Norl
''Nf '"'''S WI "Rs''f"'' i'n'"i "
: noo oon
salcs for the nlnc months rrcced
Ina September 80 1891. were onl'
80 GOO. .ooo ~ asains, st7.ooo.ooo 10
w, slmils, period ending Scptembc
40. 1890. PROFITS for the 1920 pcrio,
nrc stated ~ N'.aoa,'sa. while. los
~ t7.ase. 1870 was Incurred In tn
1874 period. and tho company IL state,
~ be confronted with other losses b.
reason of outstanding contracts 10
supplies.
Tho insolvency OF tho company
shown h, it. inahill,vioyon 60 psy tn
Interest on i,s deh's.
\ committee was FORMED In Sep
tcmher. 1921 to protect ontstandinl
commercial paper smountiLg 60 si3.
aao. 600 and another committee wa
formed last month 10 protect Sc,
600 600 Hold ) per cent nct~s, and IN
business .. now being csrsicd on b.
the-r committees.
The general financial depression {
held responsible In part for the pres
cnt posi'ion of the company added q
which ~ depreciation of i,s inventory
The company took over the Ameri
can Graphophonc Company IN 1914
Il In pointed out that while tha
eompnny's liabilities amounted to Sc.
coo. 600 at that iimc. the new owner
had expanded these 20 more tAal
sas 900 900 n, the close OF 1920. 81,
years later. on the basis OF si2 valu
fot the common stock. while the in
cr~ssc ~ basic capital assets durin,
the Same period was only $4,000. 90
akains, n capital increase OF abou
sak 600 600.
W. q. Mahan'i of wiimlngton IAN,
Walter G. McDermo;t of Jersey Cit
are the solicitors FOR the petitioners
Who ask for the naming of re
rcivcr or receivers To talsc charge O
nil S~s~is of the company, In accord
Ance with the laws OF De aware. an,
f0r an injunction 90 protect their n
tsr~Sfs.