Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-02-07
Communicated
THE GRAFF.BENNETTs MATTER.
Judge Bailey's statement-Why and How
He Sold Certain Assets.
To Nv FaTouftti.ars.

lie for every act of my life. / am prepared
to do it, and beg for no quarter. One of
our daily papers says am charged with
malfeasance as assignee of Graf, Bennett q
Co., and thinks, as a candidate, ought to
make a statement As that paper published
letters from several lawyers in the case,
stating that no such charge was made in the
| papers filed, the mistake of the writer was
unfortunate. / assert distinctly that no
man has of record made an accusation
against my integrity. except possibly by re-
mote implication.
1 am willing to adopt the suggestion of
the Leader, and will make the statement 50
| brief that hope even a busy man may
read it. am the more encouraged In this
course because what 1 assume to be cor
rect COPY of the exceptions fled of record
to my account as assignee have been pub
lished in the newspapers, but so displayed
with italics, small caps and great caps, that
to one simply reading these, more might be
assumed than the context would warrant
The chairman of the Republican Committee
in formulating this publication proposes
thereby to show my utter incompetency to
manage any ordinary affairs 1t will be
seen that the chairman, W ho is an in
genuous lawyer, fails to find in this publi-
cation what the Leader was misled into
| thinking must be in it. A great deal less
will be found in the bill of Mcintosh,
Hemphill & Co. to set aside the sales of the
| mills, and still less In the crossbill in that
case of James 1. Bennett, which is copied
from the other. 1 might hint to the chair
man that in printing the record it is es-
teemed but fair to print the whole of it,
which would include the petition for the
sale of assets so complained of, and my
sworn answer to the Hemphill bill.
Tha criticism of NV pOndupt os
is that without attempting to sell them at
public sale, and without furnishing a sched-
ule of them to the creditors and the court,
and without ascertaining their value, OBJ
tanned from the Court of Common Pleas No.
2, their decree authorizing me to sell to a
combination of creditors the assets remain
ing after sales by me for their due bill for
$4,000, greatly inadequate price, to the
injury of the other creditors.
No public sale of these effects was pos
siDle.
tion more than could have been obtained
from the inventory on file.
could not ascertain their value because
l had no means of information that was not
possessed by the sworn appraisers, who failed
to learn the value of great many of them.
The Combination of creditors" comprised
three fourths in amount of the unsecured
creditors, who tell me that they solicited the
others to unite with them.
The assets were not sold for $50 900, but
have reason to believe cost the purchasers
$3.50, 900.
Alter 1 had sold the mills, stock, ma
terial, etc., found m yself confronted with
this situation: The firm had pledged to the
Kittanning Iron Company for a debt of
some $50, 900, existing under the extension
granted the firm, several properties, and in
contemplation of their voluntary assignment,
Graf, Bennett & Co. pledged to the iron
company for the same debt nearly every
thing else, included in the sale, excepted to.
OF course there could be no public sale of
any of these properties except subject to
this pledge of $50, 900. No purchaser could
be secure without buying all the properties
pledged, paying in addition to the purchase
money the money due the iron company.
Also, one of the properties was pledged to
secure $40, 900, and there were attachments
in several States, a mortgage in Ohio and
much ether litigation, in progress or in
prospect, with respect to portions of these
assets, and the legal complications con-
nected with the Grafton Furnace, pig
iron, etc., alone were simply enormous.
If these had been carried on by me it
would have tied up the estate without
cent to the creditors for from
three to five years, and have involved un-
limited attorneys fees and other expenses.
In the meantime, the pledges were at the
mercy of the Kittanning Iron Company;
they could not ne expected to wait, and be-
fore the sale excepted to was informed by
the general managers of the company that
they intended to proceed to make their
money. Under these circumstances the
trustees proposed to buy the remaining
assets. The matter was discussed in my
Office with Messrs. Graft & Bennett and the
two clerks OF the old firm, whom 1 had re-
tanned. q had no other clerks but these.)
1 finally decided to take the advice Of
counsel. 1 consulted George Shiras, Jr,
Esq, than whom no purer man practices
law. Upon statement of the circum-
stances he approved of the sale, as it
was subsequently made. 1 determined
that must have the approval of the Court,
after notice to everybody concerned, before
would make the sale. A petition was pre-
pared, approved by Mr.. Shiras, and by him
presented to court. The Court ordered that
a hearing of the matter should be had on the
eighteenth day thereafter, and that notice
should be given to creditors, who could be
reached, and by publication to others. The
record shows that such notice was given. In
the interval no creditors or counsel called
upon me for information respecting the
proposed sale, and neither Mr.. Graft nor Mr..
Bennett, though aware of the time and place
of hearing, interposed any objection.
At the hearing Mr. Graf and many credit
ors were present, counsel were heard ad-
versely, and the Court, being satisfied that
the sale as proposed was judicious, author
lied me to make it, and to accept the due
bill for $50, 900. (This due bill has been
fully met, as appears by the report of j. H.
Miller, Esq, auditory This due bill was
not the amount these properties, that were
in the utmost peril of being swept away,
cost the purchasers by, believe, 500, ,000
The purchasers could not touch these prop
critics, or make sales of them, without set
Ting with the Kittanning Iron Company,
with the mortgages of Ohio lands, attach
ing creditors and others. The properties
were sold Subject to all mortgages, judg-
ments, liens, pledges, attachments, and in
cumbrances on assets so sold, including un-
paid taxes, and assessments, and claims in
the nature of taxes and assessments" =" Then,
to be even more explicit as to this point,
the trustees assumed TO pay the debt OF some
$4,000, due the Kittanning Iron Company,
and to relieve the general estate from proof
of said debt.
This sale made under the advice of able
counsel, and of the decree of the same
Court who is to pass upon my administra-
ton, I am told by exceptants is no protec-
tion to me because they say the Court had
not jurisdiction TO make the order.
Thus l have given the facts without note
or comment. The allegation then is, that
though 1 sought the advice of counsel and
Court and followed it. I showed want of
Judgment. 1 do not think this is my case,
and l am of opinion that if you see fit to
elect me Mayor will be able to develop
mental qualities that will command the re-
spect of certain gentlemen who for years
past have devoted themselves largely to city
affairs without jurisdiction and without So
hcitation. ] assure anyone who has hereto
fore esteemed me honest, that he need not