Wilson & Co.

Wilson & Co

Some months ago, it became evident that Wilson & Co., one of the "Big Four" packers* would need cash, although its statement showed $120,000,000 assets to $77,000,000 liabilities. It was thought that the Company's affairs would be peacefully readjusted.

Suddenly, however, there appeared one Maurice I. Klein, a Newark physician, owner of a 25-share lot of Wilson stock; he demanded that an equity receiver for the Company be appointed. Before the receivership can become permanent, however, a hearing must be held. In all probability, President Thomas E. Wilson will have much to say at this meeting. He has announced that he will contest the proposed receivership.

The attack was unexpected. A friendly receivership, to be followed by a reorganization, was expected in Wall Street, although denied by the committees working on the matter. This expected development will be greatly complicated by the action of the obscure 25-share partner in the business. At recent market prices, Dr. Klein's stock is worth about $100; yet his claim for a receivership involves assets valued at $120,000,000. This apparent step toward throwing a monkey-wrench into the Company's machinery should provoke a lively tilt in the Courts when the question of a permanent receivership is taken up.

Meanwhile, the Company countered by obtaining a Federal Court receivership in New York. Judge Julius M. Mayer, Robert L. Morrell and President Thomas E. Wilson were appointed receivers on a claim of $5,943 by the John Eiszner Co. The question now remains, Which set of receivers will be left to manage the business? Mr. Klein will, of course, endeavor to have the New Jersey receivership gain supreme control. The Wilson Co.'s aim is to have the three Federal receivers manage assets in New York and Illinois, with ancillary receivers in other States where the Company has important interests.

* The others are Armour, Cudahy, Swift.