The New York herald., 1922-01-15
RECEIVER FOR SPORT
CLUB CORPORATION
Creditors Of Holding Organiza-
tion File Voluntary
Petition.

The l. S. C. Corporation. the realty
holding corporation formed by members
Of the International Sporting Club, OF
which Gutzon Borglum is president. went
into the hands of receivers yesterday
Judge Julian w. Mack appointed Ernest
Given, who is treasurer of the sporting
club. receivers. with joint bond of $1,000
following the filing of an involuntary
petition by several creditors.
The action marks the elimination of a
series of events in connection with che
formation of the corporation which pro-
posed TO erect a million dollar club
house where boxing exhibitions would be
national Sporting Club. About 1,4O0 Of
the 1900 members OF the sporting club
were holders of ten year $500 bonds in
the corporation.
The corporation was formed in 1919
for the purpose of obtaining property on
Yhich to build the proposed clubhouse.
TO this end s750.000 in ten year bonds
was obtained and property at Forty
ninth street and Lexington avenue pur-
chased for $531 900 cash. over and above
mortgages. This property, or at lea 81
the major part of it, was sold week
ago at a foreclosure sale and was bough
few days ago by James T. Lee, 25
West Forty-third street, who is con
templating the erecting of a fifteen story
apartment house on the Site
With $4,000 a year interest due on
the bond issue, taxes and mortgages
20 the extent Of $4,000 a year due.
and amortization amounting to $4,000,
the corporation faced a yearly expendi-
ture of s150,000. and also the probability
they would not be able to start building
with such a deficit overhanging. The
major part of the Forty-ninth street
property was, therefore. sold on January
6 by court order to satisfy q second
mortgage held by the Centerfield Realty
Company, which company bid it in for
s371,671.
According to one of the officers OF the
sporting club yesterday. the difference
between the S750,000 raised by the bond
issue and the purchase price of the prop
erty. which was $531. 900, was wasted"
in the expensive promotion which was
done after the formation of the corpora
ton. Auditors are at present going over
the books of the corporation TO ascertain
the exact condition OF the affairs of the
holding company.
The petitioning creditors who filed the
involuntary papers yesterday were Tex
O'Rourke, who is secretary of the sport
ing club and who claims $1,000 for
I,ro ).
ques &c Co, Inc, 116 East Forty
first street. claiming s4,Os5 for print
ing. services and supplies, and Jessie
Morris. no address given, who claims
$50 for printing work. According to
the petitioners. the liabilities of the cor
poration are estimated at $500 and
the assets, In cash and property. amount
to $4,000. Thomas II. Low of 233
Broadway is attorney for the creditors.
and Hardy. Stancliffe & Whitaker. 165
Broadway, are counsel for the alleged
bankrupt.
Tex ORourke i'm commenting on the
failure of the company said:
This action will have no detrimental
effect upon the International Sporting
Club. In fact l believe the sporting
club, relieved of the burden which the
proved to be. will travel to
success faster than it would have been
able to do before. The bondholders of
the corporation will be protected and
Will lose nothing by the action taken in
the courts yesterday"
Gutzon Borglum could not be reached
1t is understood, however,
hat at the meetings of the advisory
board of the sporting club, which is to
meet tomorrow. Tuesday and Wednes-
day, action will be taken to straighten
out the affairs of the holding corporation
and insure a proper adjustment of the
matter to the satisfaction of the bond
holders