Evening star., 1923-02-23
LOCAL INVESTORS
CAUGHT IN FAILURE
Receivers Named for Cleve-
land Rediscount Com
pany.

William L. David and Thomas IL.
Hossetf. attorneys of Cleveland, Ohio.
late yesterday We're named receivers
FOR. the Cleveland Discount Company
enc of the largest mortgage concerns
in the United States, by common
Pleas Judge Alvin T. Pearson and
imme diateIy took charge of the at
fairs of the company. Two other
lawyers at the same time were ap-
pointed attorneys for the receivers.
The resources of the company. which
has a branch here, in the Munsey
building, were reported last July to be
In excess of $i2,000,000.
George A. Harris, local representa-
tive of the company, who only re-
Gently was elected vice president and
director of the company, resigned sew
eral days ago.
Acts for $4,000 Stockholders.
a voluntary petition asking the re-
ceivership was filed by w. II. Hopple.
Tlftin, Ohio, manufacturer, chairman
Of the board of directors, who said
that he made the application on be-
talf of more than $4,000 stockholders
scattered throughout the country. Mr..
Hopple is said to be the largest stock
holder in the concern.
Appointment of the receivers came
as a.climaX to a situation which has
undergone many rapid changes IN the
Sast ten days. and follows the resig-
ration Wednesday of Fred c. >Emde,
getting president, director and general
manager. Mr.. Emde was appointed to
these offices on February II, when
Josiah Kirby, founder Of the com
pany, resigned upon recommendation
of a committee of bankers, whose ad-
vice was sought by the directors.
Louis J. Esty. who was appointed
vice president at the same time, re-
signed a few days later.
Explains His Resignation.
In resigning Mr.. Emde declared he
did so because the ''rarnifications of
fhe business all over the United States
were so enormous that it was simply
impossible for me to handle It ana
conserve the best interests OF all
parties"
The receivers issued a statement
last night in which they said that
every effort will be made to conserve
the assets OF the company from
needless litigation and to protect the
property for the benefit of all con-
Cerned.
1--WE are informed by officials Of
fhe company that, while many OF the
Assets are frozen and time Will
be required to Iiquidate them, yet IN
their opinion the company Is solvent,
The statement says. I'VE expect TO
patton of the assets of the company
through needless litigation
The petition was received by Judge
Pearson after a special trip from
his home to the Cleveland courthouse,
closed on account of Washington's
II ssts forth that the company is
sot by any means insoIvent; that the
action is taken merely for the pro-
lection of the many stockholders and
that. "if the assets are conserved and
The affairs properly managed" not
only will the company be able to pay
tts, debts in full, but there will be
a substantial portion of the capital
left for the benefit of the plaintiff
and the other stockholders.
Unable to Get Officers.
The company IS without the serv-
fees of president and other eNecu-
ffves, the petition states; only eleven
OF the authorized twenty-five dIrec-
tors arc qualified and active. and re-
neated efforts to persuade competent
and qualified men to act as officers
and directors have failed. ..
Tho petition also says that no per
manent chairman of the board. of d.
Vacancy created by Kirby's resig-
nation. Kirby having been chairman n
as well as president.
AMONG the projects involved in the
teceivership action through loans are
fhe Sharon Pressed Steel Company.
sharon, Pa, and the Cleveland Dis
Count Building Company, which com
pleted a twenty ONCE build
mo at 4 cost Of approximately'S ,0Oo,-
600 a year ago.
Kirby formed the Cleveland Dis
count Company m December, 1918;
Within a year offices had been opened
IN various cities in Ohio and the
capital stock increased to s20,000,0oO.
In September, 1920, the company bad
branches in BALTIMORE, Philadelphia,
New York, Pittsburgh, Albany, n. T.,
diana Ali or most Of these had been
closed two weeks ago.
The Ohio state securities. depart
snent last week reYoked the com
pany's license to sell it's own stocks
and bonds in Ohio.