12 



THE INDIA RUBBER Vv^ORLD 



[October i, 1902. 



when their tire patent monopoly will cease. It is needless to 

 say that this move is not looked upon with the liveliest satis- 

 faction by those old established houses whose business it is 

 sought to annex. =«=-Dr. Carl VV. Thiel, who has been chemist 

 at Messrs. Reddaway's rubber and belting works at Pendleton 

 for the last six years, has vacated that position, his health hav- 

 ing been unsatisfactory for some time. Dr. Thiel has been 

 demonstrator at Eriangen University and has done tutorial 



work at Oxford. He now leaves the smoky atmosphere of Man- 

 chester for the more salubrious climate of Hamburg, having 

 been appointed chemist for the Asbest- und Gummiwerke Al- 

 fred Calmon. Of a somewhat retiring disposition, Dr. Thiel 

 has not engaged in any controversies in the press and, indeed, 

 I i.Tiagine his name is quite unknown to the readers of the rub- 

 ber trade journals, a fact which is a necessary outcome of being 

 engaged in research work. 



THE AMERICAN BICYCLE CO. EMBARRASSED. 



A CRISIS which has developed in the affairs of the Amer- 

 ican Bicycle Co. has caused little surprise in the trade. 

 It was generally expected that the company would de- 

 fault on the payment of interest on its debenture bonds 

 due on September i, which proved to be the case. Receivers 

 have since been appointed in a friendly suit, and plans are under 

 way for the reorganization of the company, probably with a 

 smaller capitalization. The American Bicycle Co., incorporated 

 in New Jersey in May, 1899, was organized to acquire and operate 

 the works of forty-four of the principal manufacturers of bi- 

 cycles and bicycle parts in the United States. Subsidiary com- 

 panies have since been formed to carry on the various branches 

 of production of the company, which is now only a holding 

 company of the stocks of the various subsidiary concerns. 

 None of these companies, it was at first stated, would be affected 

 by the fact that the parent company had been placed in the 

 hands of receivers. 



The receivers appointed are R. Lindsay Coleman, president 

 of the company; Colonel Albert A. Pope, a director and un- 

 derstood to be a large holder of the company's securities; and 

 John A. Miller, a resident of Newark, New Jersey. The ap- 

 pointment was made on September 3, in the United States 

 circuit court at Trenton, New Jersey, on the application of 

 Elliott Mason, of Brooklyn, New York, holding 220 shares of the 

 capital stock of the company, and Mrs. Emma B. Stimson, of 

 New York, holding 8 debenture bonds, who allege that the 

 company is insolvent. They give a statement, based upon the 

 information furnished by the treasurer of the company, show- 

 ing liabilities of more than $10,000,000 and assets estimated at 

 $7.75'. 523. R. Lindsay Coleman, Albert A. Pope, and Frank 

 J. Webb have been appointed anciliary receivers, in the United 

 States circuit court in the city of New York, the American 

 Bicycle Co. owning property in the state of New York valued 

 at $375,920. Anciliary receivers have also been appointed in 

 the other states in which the company owns property. A re- 

 organization committee now at work consists of George F. 

 Crane (of Baring, Magoun & Co.), George A. Read, George W. 

 Young, F. S. Smithers, and Colgate Hoyt. 



The American Bicycle Co. was organized with an authorized 

 capital of $30,000,000— $10,000,000 in preferred and $20000,000 

 in common shares. In October, 1901, the capital stock was re- 

 duced to $26,995,500— $9,294,000 in preferred and $17,701,500 

 in common shares. There was also an issue of $10,000,000 in 

 5 per cent, debenture bonds, to be retired at the rate of $250,- 

 000 per year, the amount now standing at $9,500,000. The 

 company early in its history sold its rubber tire plants to the 

 Rubber Goods Manufacturing Co., and has gradually closed 

 other plants, until a few now are operated, these being worked 

 by various subsidiary companies named in this article. Of 

 these ten are bicycle factories. These companies are now re- 

 ported in a fairly good condition, except that they need more 

 working capital, but this has been the case from the begin- 



ning. The liabilities of the American Bicycle Co. consist mainly 

 of its debenture bonds, which are held largely by shareholders 

 in the company and their friends, so that any reorganization 

 that may be effected will be done within the corporation. The 

 next annual meeting is due October 14. 



The principal liabilities are reported as follows : 



Debenture bonds at 5',' $9,500,000.00 



Interest due on debentures 225,000.00 



Baring, Magoun & Co iso.ooo.oo 



National Battery Co 5,000.00 



F. S. Smithers & Co 58,073.68 



Federal Manufacturing Co 50,000.00 



Total $9,988,073.68 



The principal assets are shares in the following corporations : 



P.ir Value. Market Value. 



American Cycle Manufacturing Co $8,000,000 $4,000,000 



International Motor Car Co 2,000,000 800,000 



Federal Manufacturing Co 3,200,000 2,000,000 



National Battery Co 215,000 50,000 



American Wood Rim Co 146,500 125,000 



American Bicycle Co. debenture bonds 500,000 275,000 



Barwest Coaster Brake Co 75, 000 nominal 



Auto Street Sweeper Co 34, 300 nominal 



Total ?I4, 170,800 $7,250,000 



Some other assets are valued as follows : 



Plants : 



Syracuse, N. Y $45,000 



North Buffalo, N. Y 36,000 



Tbompsonville, Conn 25,000 



Hartford, Conn 170,000 



Reading, Mass 50,000 



Chicago. Ill 35,000 



Shelby, Ohio 30,000 



North Milwaukee, Wis 50,000 



Cash in bank 14,000 



Miscellaneous assets 25,000 



Accounts and notes 5,427 



The India Rubber World's Akron (Ohio) correspondent 

 writes: " Manufacturers of bicycle tires here have been taking 

 considerable interest in the recent appointment of receivers for 

 the American Bicycle Co. and the movement for the reorganiza- 

 tion of that company. They do not believe, however, that the 

 difliculties of that concern will have any serious effect upon the 

 bicycle tire trade. Your correspondent, in talking with the rub- 

 ber manufacturers, found the opinion general among them that, 

 following the reorganization of this company, the bicycle trade 

 would be improved; that whether the American company 

 bought many or few, tires would continue in fair demand, al- 

 though the business is not what it once was. The principal 

 reason for this is that the percentage of cheap tires has been 

 increasing, since the sale of bicycles is confined more and more 

 to the wage earning classes and young people who buy them 

 merely as pleasure vehicles. The weather all over the country 

 this year was against the bicycle business, but a better trade all 

 around is looked for in the coming year." 



The number of independent bicycle factories continues to 



