Every evening, Wilmington daily commercial., 1922-02-24
UNITED AUTO STORES.
CHAIN CONCERN, IN
RECEIVERS HANDS
Continued from page l

As far ms could be learned, no special
stock drive has becn made hero lately,
and It said there arc not many local
open about two years.
In the Philadelphia court action yes
terdny Judge Thompson at tho same
time granted injunctions against the
sale OF any more stock In the cor
poration by tho United Guaranty Cor
poration.
Charges were made by Assistant
United States District Attorney
Joseph l.. Kun that the United Guar
anty got 81 per cent on all the stock
II sold. Shares were disposed OF at
$50 share. he stated.
Judge Thompson also issued an or
der prohibiting tho stores corporation
and It's oQlcials attempting TO do any
moro business
Following the appointment Of the
receivers Mr.. Kun communicated with
Carrier. It Is understood. In regard to
tho, company's books.
Mr.. Kun. who accompanied the re-
ceivers TO Eleventh and Race streets.
Philadelphia. summoned the 80 en-
fployees before him and advised them
to get other positions. He also in
structed officers Of the company TO
send out no mail Accountants were
placed on the books.
The company. which has outsta nd
ing capital stock OF s2.ss2 $50. accord
ing TO the bill In equity, has had it,
capital impaired II la alleged. by stock
selling agreements with the United
Guaranty Corporation. u. u. y. Car
rier is also president OF tho Guaranty
Corporation, Il Is averted. and control,
the latter corporation by virtue OF
voting stock ownership.
Allegations In the BiI.
The United Auto Stores Inc, was in
corporated In September. 1919. and tn
United Guaranty Corporation WA
formed In April, 1921. the bill alleKe.
AT tho close OF business OF Decembe
81, 1921. II is alleged, there were cnpl
tai stock liabilities OF t2,3s2,2so. O
which fal9,S6b was in preferred stock
The total assets were listed at Sf,la2.
251.66. and current liabilities OF 3ig5.
7s2. which left the company with a.
apparent net worth OF t99s,50a. Sine
b
charged of sSo6.S6e for organizatio
and promotion f74b.6p6 for deprccia
ton. and in 1921 charged on loss G
S265.523, Il is alleged. The total los
charged from September. 1919. to De
cember 81. 1921, the bill declares, ha
been s1.3S5.77I.
The company owes large sums 70
. wages and rents. II IL declared. Tn
receipts from the operations OF tn
stores are said TO he insufficient to pa
: the costs OF operations.
Oniclals Claim TO 30 solvent
Representing the Sales Compan,
according 10 tho Philadelphia Recor,
Attorney James T. Carey last nigh
entered general denial or the nllegs
tions made in the bin I'm equity. II
said the officials of the compan
claimed to be solvent with liabilitie
OF only about $4,000 and assets
excess OF that amount in merchandis
and book accounts. while bills 10 th
amount OF $4,000 have been paid 1
the last so days.
il was also denied that there ma
been excessive sales of stock. the n,
scrtion being made that preferre
stock amounting to less than 81 200
900 had been issued. IL was furths
stated that no complaint has bee
r made by shareholders and that II
business was In ruch shape that, II lie
. under control OF it's officers. the con
pany would soon be In sound nnanci
:. condition.