February i, 1902.] 



THE INDIA RUBBER WORLD 



145 



THE RECENT FAILURES IN THE RUBBER TRADE. 



GEORGE WATKINSON & CO. 



ON December 31 George VVatkinson and Irving Watkin- 

 son, his son, individually and as partners trading as 

 George VVatkinson & Co., manufacturers of rubber 

 boots and shoes in Philadelphia, were adjudged volun- 

 tary bankrupts in the United States district court at Philadel- 

 phia. Application for a decree to this effect was made by their 

 .attorney, Preston K. Erdman, immediately upon an attachment 

 having been secured against the company for failing to meet 

 three notes of about $5000 each, made by them endorsed by the 

 Crude Rubber Co. (New York) and discounted by the latter in 

 various banks. The Provident Life and Trust Co. of Philadel- 

 phia was appointed receiver, and Theodore M. Etting, referee. 

 The schedules filed show liabilities of the firm estimated at 

 $[,447,685.05 and assets at $1,048,512.44. The following appears 

 in a state-Tent of the schedules published in The Weekly Bul- 

 letin, a Boston credit paper : 



There are 176 notes, running from $4691 up to $25,000, the great 

 majority of which are for either S5000 or a little mere or a little less 

 than $5000, though ten of the number are for $10,000 each, aggregat- 

 ing $941,911.29, running to Flint & Co., of New York, described as 

 follows : 



" These notes were given at different times and are due at different 

 dates. They are the promissory notes of the bankrupts to their own 

 order, and by them indorsed and delivered to Flint & Co., for the ac- 

 commodation of Flint & Co., and to cover certain sales of merchandise 

 and advances and loans of money from Flint & Co. to bankrupts. Upon 

 the adjustment of the account between them the bankrupts should pay 

 about $375,000 of these notes. The remainder of them, if negotiated, 

 should be paid by Flint & Co. The bankrupts do not know who are 

 the holders of these notes, if negotiated." 



George Watkinson & Co. have been in business since 1896, 

 during which time a large trade has been built up in the sale of 

 rubber footwear to retailers direct, their customers numbering 

 many thousands. On account of the extent of their trade, and 

 of the number of orders in hand, it is understood that Phila- 

 delphia parties will attempt to reorganize the company, and 

 continue the operation of the plant. It is being run for the 

 present by the receivers. Mr. Watkinson, in i860, became a 

 bookkeeper for Henry Elliott, a rubber shoe jobber in New 

 York, and later became a partner; in 187 1 he went to New 

 Haven as general selling agent for the Candee Rubber Co., 

 where he remained for eighteen years; he then organized the 

 Colchester Rubber Co., which, in 1893, he merged in the 

 United States Rubber Co., for which company he became as- 

 sistant general manager. On the expiration of his contract 

 with the United States company he established the Philadel- 

 phia factory. 



CRUDE RUBBER CO, 

 The Crude Rubber Co., of New York, went into the hands 

 of a receiver on January 4. On the application of counsel for 

 Flint & Co., as stockholders in the Crude Rubber Co., Judge 

 Robert R. Prentis, of the circuit court of the city of Norfolk, 

 Va., appointed William W. Ladd, Jr., receiver of the Crude Rub- 

 ber Co. in that jurisdiction, it being a corporation under the 

 laws of Virginia. On the same date Judge E. Henry Lacombe, 

 of the United States circuit court for the southern district of 

 New York, in ancillary proceedings, confirmed the appoint- 

 ment of Mr. Ladd as receiver. The bond of the receiver is $50,- 

 000 for each jurisdiction. Mr. Ladd was for years deputy cham- 



berlain of the city of New York and was later an assistant corpo- 

 ration counsel and the personal legal adviser of MayorVanWyck. 



It was stated by William Nelson Cromwell, counsel for Re- 

 ceiver Ladd and for Flint & Co., that the application for a re- 

 ceivership was taken in the interest of the creditors and share- 

 holders of the Crude Rubber Co., and to prevent preferences 

 by attachment and dismemberment of the property and assets 

 of the company. " The company has conducted a large business 

 in South America and in this country. The present stock and 

 merchandise consist of rubber and bills receivable to the 

 amount of over $3,000,000, mostly under pledge to bankers. The 

 direct liabilities are stated at about $3,000,000, and guarantees 

 and endorsements at about $2,000,000, of which about $800,000 

 is in respect of paper of George Watkinson & Co., of Philadel- 

 phia, who failed a few days ago for several millions." 



The Crude Rubber Co. was chartered by the corporation 

 court of Norfolk, Virginia, February 26, 1897, and commenced 

 active operations in August of that year, with offices at No. 66 

 Broad street. New York. The company was organized with 

 George S. Dearborn, of what was at that time the New York 

 shipping firm of Flint, Dearborn & Co., president ; Henry Earle, 

 of the old rubber brokerage firm of Earle Brothers, vice presi- 

 dent and general manager; Charles M. Bull, secretary; and 

 Paul de Lacy Liebermann, treasurer. The remaining directors 

 were Richard F. Sears, engaged in the rubber trade at Para, and 

 William A. Young, of Norfolk, the resident director in Vir- 

 ginia. The company had a capital of $1,000,000, being $600,000 

 preferred stock, stated to have been fully paid in cash, and 

 $400,000 common stock, issued for good will and service con- 

 tracts. The company took over the business of R. F. Sears & 

 Co., of Pard, established in 1881, and formed connections on 

 the Amazon with the Sears Para Rubber Co., chartered at Nor- 

 folk, Va., July 16, 1897, with R. F. Sears president and Henry 

 Earle vice president. Recently there were some resignations 

 and changes ; the office of president was vacant, and the board 

 of directors comprised Messrs. Earle and Liebermann, R. C. 

 Mackay, H. C. Potter, and Anton Declisur. In connection 

 with the recent proceedings it was stated that the $400,000 of 

 common stock had been retired, and that 1220 of the 6000 

 shares of preferred stock was held by Flint & Co., which firm 

 consists of Charles R. Flint and his brother Wallace B. Flint. 

 Mr. Ladd, as receiver, took formal possession of the offices of 

 the Crude Rubber Co. (removed some time since to No. 25 

 Broad street), on January 6. relieving a deputy sherifT in charge 

 under attachments from the New York supreme court, on ac- 

 count of three notes made by Watkinson & Co., for about $5000 

 cash, indorsed by the Crude Rubber Co., and protested for non 

 payment. 



Simultaneously with the appointment of a receiver for the 

 Crude Rubber Co., its stock of rubber, at a valuation stated at 

 $2,000,000, was sold to the International Crude Rubber Co. 

 This was done, according to a published interview with Mr. 

 Flint, with the consent of the principal creditors and all parties 

 in interest within reach. Of this amount $1,000,000 worth was 

 sold at a concession to the United States Rubber Co., on sixty 

 day notes. " This rubber," according to Mr. Flint, " is pledged 

 to banks as security for loans, and this method of selling the 

 equity in it to a solvent concern is adopted to prevent dumping 

 a large quantity of rubber on the market at one time. The 

 highest price possible will be obtained, for the creditors of the 



