Evening star., 1923-03-08
STEEL
ENTERPRISES FAIL
Concern Goes Into Receiver
ship by Act of Federal
Court.
FIRST STARTED IN 1919
Promoter, Retired January 27,
When Board of Control
Took Charge.
FIRST STARTED IN 1919
By u. Associated P-ess.

by TIE ssOc4atSq fTcss
BUFFALO. \. y. March S.-Receiv-
ers were appointed in federal court
here today for the L. R. Steel enter
prises. IN which the public has in
vested about s22,00o,ooo. L. r. Steel
the promoter, severed his connection
with the companies, OF which there
were nearly a score, on January =,
and since then direction Of the Steel
enterprises has been IN the hands OF
a board OF control.
The receivers were appointed on a
suit in equity brought 70 conserve
the assets of the various corporations
The petitioner is the National Toy
and Tinsei Manufacturing Company OF
Manitowoc. Wis.
Judge John r. Hazel named as re-
ce.vers William W. Re!lley, Buffalo
lumber merchant; David NJ. Lewis
New York lawyer, and Charles Ben-
nett Smith Of Buffalo. former con-
gresham.
Orxaniized in 1919.
The parent Steel company was or
ganized IN 1919 by Leonard r. Steel.
who for several years had been iden-
titled with chain store companies. II
later became known as l.. r. Steel,
Inc, and as the business grew sub
sidiaries were formed to sell stock, to
administer the real estate controlled
by the various enterprises and Coz
many other purposes.
Chief among the subsidiaries was
the l. r. Steel Service Corporation
which handled the sale Of stock in al
the Steel concerns in which the public
was invited to invest. Elaborate
Offices were opened in the larger cities
Of the United States and Canada and
dispose of stock. Fifty thousand per-
sons, il is stated, put more than
$4,000. 900 into the common and pre-
ferred stock.
Steel Lauded.
Frequent conventions Of the Steel
stock statesmen were held at which
Steel was lauded as "a wizard in chain
store management" and the force was
enthused to greater effort in the dis
posal OF stock IN Steel enterprises.
The first sign Of distress, so far as
the public was informed. came on
January 81 when It was announced
that Leonard r. Steel had surrendered
the presidency Of the l.. r. Steel, in
corporated, the l. R Steel Service
Corporation and the I. r. Steel Realty
Development Company and had placed
his stockholdings In these and other
subsidiaries in the hands Of an ex-
ecutiYe board.
"Brokeo Upon Retirement.
Steel, It was intimated. left his
enterprises without dollar except
what was represented in his Steel
security holdings. HIS city home
previously had been sold and a
beautiful country residence, where he
now lives. was In his wife's name.
Mr.. Steers health was shattered by
his three years devotion to the bust
ness, 1t was stated
W. NJ wilkins. general counsel for
Steel corporations, was made chair
man of the executive board. Stock
selling. It was announced. would be
discontinued, but 1t was not until the
middle Of February that the stock
selling agency ceased to function.
This was followed by announce
ment that the state attorney general
had been investigating the financial
status of the Steel companies and
that the Steel executive board had
entered into a stipulation not to sell
more stock.