MOTOR COMPANY FAILS.
The New York Times
December 17, 1922
Receiver Appointed for the Kelly-Springfield Truck Concern.
SPRINGFIELD, Ohio, Dec. 16.—The Kelly-Springfield Motor Truck Company of Springfield was placed in the hands of a receiver this afternoon on application of the Bankers Trust Company of New York, which also asked foreclosure of a mortagge for $1,500,000.
Pearl A. Lewis was named receiver by the court and authorized to borrow $250,000 to continue operation of the plant.
The Bankers' Trust Company states in its petition that the Kelly-Springfield Company on June 1, 1921, issued its "first mortgage 8 per cent. gold bonds" in the aggregate sum of $1,500,000, giving a mortgage to the trust company as trustee to secure these bonds.
The Trust Company asserts that three semi-annual instalments of interest on the bonds are overdue and have not been paid. The company asks that the mortgage it holds be decreed valid and a subsisting lien on all the property of the Kelly-Springfield Company.
It is stated in the petition that large claims are being made against the Kelly-Springfield Company for materials, and these claims are disputed, resulting in one suit against the company for $500,000 and threats of others. This, the petition says, will destroy the credit of the company, unless the receivership is established.
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