The Monmouth inquirer. [volume] (Freehold, N.J.) 1865-1933, 1924-08-21
BIC OIL FIRM PUT
IN RECEIvERSHIP
Ex-Judge Mayer and Joseph P.
Tumulty Take Over Tangled Af-
fairs of Middle States Combine.
ASSETS ARE s25,ooo,ooo
Claims Total $4,000, ooo-Appoint-
ment PIeases Stockholders and
reditors-President Tells of
Recent Losses.

New York.-Julius M. Mayer, form
er United States Circuit Court Judge,
and Joseph p Tumulty, private secre-
tary to the late President Wilson,
were appointed receivers OF the Mid
die States Oil Corporation. Federal
Judge Knox, who made the appoint
ments, sadi he selected Mr.. Mayer be-
cause he is an expert in equity pro-
ceedings and man "who cannot be
crowded" Mr.. Mayer was spending
vacation in the Adirondacks. He
came here to discuss the matter with
Judge Knox and consented to accept
the appointment because he saw in
the work "a chance for public serv-
ice" He had planned trip to Europe,
but this will be abandoned.
Mr. Tumulty was chosen from list
submitted by the security holders and
others having financial interest in
the corporation as one who would be
satisfactory and who would not pro-
woke court opposition from allied in
terests in other jurisdictions.
The receivers will represent both
the stockholders and the creditors.
The way was smoothed for their ap-
pointment by the filing, earlier in the
day, of complaint by John j. Curtin,
counsel for the creditors, for $3.50.
This complaint stated that the Middle
States Oil Corporation was a holding
concern and that its assets, consisting
of stock in approximately thirty sub
salaries, announced to 25,000,000 and
that the claims against 1t were esti-
mated at $14,000,000. Among the sub
salaries, according to the complaint,
are foud railroad companies, and
other companies engaged in the pro-
duction and sale of crude oil and il
Illuminating gas. Some of these sub
salaries, the complaint states, need
financing to complete payments for
land, for drilling and for operating
the companies to capacity.
Among the claims cited are $5,114.-
800 of gold serial notes on which the
dividend on the second series was de-
faulted on August l. An answer to
this complaint, filed by Phillips, Lei
bell & Fielding, counsel for the cor
poration, admitted the truth of the al
legations.
In appointing the receivers Judge
Knox said:
81 think the receivers will soon call
a meeting to discuss what steps shall
be taken. Judge Mayer agrees with
me that there is an opportunity here
for public service to be rendered to
the stockholders and creditors, and he
fully feels that a chance should be
given them to correct a difficult situa-
ton, SO that the property can be re-
stored to better condition than it
is in at present"
A letter sent to the stockholders
early this month stated that the as
sets of the Middle States Corporation
"dwindled to the extent of over ST.,
100000 in less than year." The COM
mittee presented a balance sheet as
of February 20, 1924, and compared
it with the figures Of a balance sheet
of June 80, 1928, in support of this
statement
That the corporation and its sub
salaries would eventually pass into
the hands of receivers was indicated
by Judge Knox in reviewing the
charges made in the complaint and
the information obtained during the
hearing on the application. 1t was
charged that, Charles N. Haskell had
become personally indebted to about
thirty-fve stockholders for sum in
excess Of $5,O00,000 through specu-
lations in the stock of the Southern
Oil Corporation and that in order
to relieve himself of this responsible
ity he had procured the passage by
the directors of the Middle States
Corporation, of resolution which
committed this corporation to the is
sue of $5,5O0,O00 of serial notes and
that large amount of the money thus
obtained had been used in acquiring
a majority interest in the Southern
States Corporation.