December 16, 1893
CRANE
IRON COMPANY FAILS
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CRUSHED BY A
BIG LOAD OF BONDED INDEBTEDNESS
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Default
In The Semi-Annual Interest the Immediate Cause of The Trouble –
Assignment to Robert F. Kennedy and Leonard Peckitt – Vain Efforts to Get
Out of the Difficulty – Bondholders will Probably Receive 40 to 50 Cents
on the Dollar.
PHILADELPHIA.,
Dec. 15.---The Crane Iron Company, Incorporated, has made an assignment for the
benefit of creditors to Robert F. Kennedy of this city and Leonard Peckitt of Catasauqua,
Penn. The deed, which is dated Dec, 14, was filed today. It was made In
pursuance of a resolution adopted by the Board of Managers Nov. 28, empowering
the officers to make the assignment and appointing a special committee to
select the assignees and determine whether the deed should be delivered and
recorded.
The
committee selected the assignees named and reported that the assignment should
be made, as in the best interests of the corporation. It was accordingly executed,
with the seal of the corporation attached by H. W. Hazard, President, attested
by James M., Hodge, Secretary. The principal office of the company is in Philadelphia
and the plant, which has an annual capacity of 115,000 tons is at Catasauqua.
The company has a paid-up capital of $1,500,000 and a funded debt of $448,000.
The
announcement of the failure created very little surprise the Iron trade, as it
had been known for some time that the company was in difficulties. The company
is said to have been hit hard some months ago by numerous embarrassments in the
trade, and now it has a large sum of money tied up in concerns that are in the
hands of receivers., It is stated that several meetings of the bondholders have
recently been held with the view of devising a plan to tide over the difficulties,
but, as the making of important concessions was involved the efforts failed.
The
immediate cause of the Crane Iron CompanyÕs embarrassment was the default of
the semi-annual interest, payable Nov. 1 on the bonds. Another obligation of
the corporation is that, in addition to the $448,000 outstanding 6 per cent
bonds, there were over $250,000 of the bonds held In the companyÕs treasury
hypothecated for loans. This brought up the total bonded indebtedness to $700,000
which was the load the company was staggering under when the default occurred.
What the other liabilities are outside of the capital stock is not definitely
known, The assets, so far as known, comprise the plant at Catasauqua, which is
worth between $400,000 and $500,000, material and supplies, and a claim against
the receiver of the Pottstown Iron Company for $65,000 on account of a credit
for material.
A
gentleman acquainted with the affairs of the company estimated this afternoon
that the bondholders would receive from 40 to 50 cents on the dollar when the
affairs of the concern were wound up, and that every claim beyond that of the
bondholders would have to go.
It
is understood that efforts to revive the company in the existing state of the
Iron trade will not be made, and that it will be quietly liquidated. The plant
at Catasauqua has been shut down for three weeks. with the exception of one
furnace. The works employ when running full from 600 to 800 hands. Robert F. Kennedy,
one of the assignees, is a Director of the Crane Iron Company and is President
of the Logan Iron and Steel Company. In addition to its own furnaces,, the
Crane Company leased the Macungie furnace at an annual rental of $5,375 making
the annual capacity 133,000 tons. The products of the works have been high-grade
foundry, open-hearth, and Bessemer pig iron.
About
The Hopkin Thomas Project
Rev.
June 2010