Los Angeles Herald - Nov 23, 1890
also closed A LARGE FAILURE. The Largest Rolling Stock Company in the World Embarrassed. Chicago, Nov. 22. —The United States "Rolling Stock company haa beon placed in the hands of a receiver; liabilities, $3,81(3,000; assets, $6,053,000. Attorney High, of the company, says the failure waa precipitated by slow collections and depression in the money market. The company is the largest builder of railway railway cars in the world. It has plants at Hegewisch, 111., Decatur, Ala., Anniston, Anniston, Ala., and Urbana, Ohio. The capital capital stock is $4,000,000. The assets consist consist of the plant at Hegewisch, worth $2,000,000; tlie plants at the other places mentioned, worth $1,500,000; car trust bonds, worth $1,533,000; rolling stock leased to various railroads, worth $300,000; supplies and material iv process of manufacture, $1,100,000, and accounts amounting to $300,000. It is understood that the failure is due to the inability to collect $300,000 due from various roads for the rent of cars. The property was put into the hands of a friendly receiver, that thia rent may be realized on. The company employs 2200 men. Its caah payments to employees and for material material arc $600,000 monthly. Stringency in the money market compelled the railroads which bought cars of the company company to pay their bills in long time paper, inatead of cash, and it has been extremely difficult to discount the paper. Judgo Blodgett, of the federal court, appointed A. Hegewisch receiver. Hegewisch ia the president of the company. company. The judge ordered the receiver to continue tlie works. New York, Nov. 22. —Vice-President Roys, of the United States Rolling Stock company, made a statement tonight tonight in conformity with that made by the offiicials of the company in Chicago today. He said auxiliary proceedings will be had in all the states where the company has property. All the creditors creditors are satisfied with the arrangement for a receiver, which is to enable the company to tide over the critical point. The London committee advised it, and this feeling has been fully reciprocated by the board of directors in New York.