The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1894-05-24
4 SETTLEMENT.

been gong on between Schmitz Il hlr-
wan and g. G. Sedgwick acting for
number of the creditors of the State
Bank, and John ". Barnes assignee of
the bank and one OF It's stockholders, for
a settlement and the terms have at last
been agreed upon and will be submitted
to meeting of the creditors which is
called for the 29th instant.
The settlement is a very favorable one
for the creditors, Icing a payment of 62
per cent Of the claims against the bank.
The assets OF the bank outside of the re-
sponsibility OF the stockholders, would
pay about 30 per cent. il the affairs OF the
bank were closed up in the ordinary man
ner Of assignments.
THE bank has already paid 40 per cent.
to creditors The Indebtedness of the
bank at the time of the failure was $685.
900. 1t will take $4,000 in round num-
bers to pay the % per cent. which MIR.
difficulties in the way Of settlement was
the valuation Of certain of the banks as.
sets. There is large quantity Of paper
on which nothing can be realized at pres
ent and it is very doubtful whether much
will come from 1t in the future. There
was considerable difference IN the estl-
mated value of this paper between the
assignee and the attorneys and conference
after conference was held only to result
III disagreement. Finally, last Saturday
all the details of the settlement were
agreed to and the following notice was
sent out TO the creditors for whom the
above named attorneys were acting.
MANIrowoC. Wis. May 49, 1894.
John ". Barnes assignee OF the State
Bank of Manitowoc and the committee
appointed by Yourself and certain other
creditors of said bank have called a meet
ing of said creditors to be held at Turner
Hall in the city of Manitowoc at 10
o'clock in the forenoon of the 29th day of
May next, at which time and place said
Barnes will submit TO SAID creditors to
ton for settlement Of all claims OF said
creditors against said bank. 1t 10 yerv
important that every creditor shall at
tend the meeting and We request and ad.
wise you to do so without fail. Notify
every other creditor you meet.
SOHMITz Il KIRwAN and
q q SFDGWICE
Attorneys for certain creditors Of said
bank.
There has never been settlement
made, more favorable to creditors of any
institution which failed with like pro-
portion of assets to liabilities than that
announced here. Mr.. Barnes, it must be
understood, was the lightest stockhoIder
of the concern. He lost his stock when
the bank failed but on the second div1-
dend, paid IN his liability of $4,000 to the
creditors. In this settlement he throws
IN his services as assignee.-and he GER
| talnly has been diligent and an able one,
pays all expenses of assignment, litiga-
| ton and attorneys fees and every other
| Item Oh expense attendant upon the wind
| Ing up OF the affairs of the bank. and con-
| tributes largely from his private means
| toward the Y per cent. additional which
Is to be paid creditors. The settleme Mt is
not with the assignee but with Mr.. Barnes
as an individual, who assumes the full OBJ
| legation of paying this % per cent, realiz-
ing what he can on such assets OF the
| bank as are not yet convert ed into cash.
| lie estimates the amount he must pay IN
cash 10y reason or his connection with the
| bank a. considerably over $4,000.
This sum coming without much litiga-
ton. and through the process of arbitra-
! ton, is extremely credItable to Mr.. Barnes
and shows his willingness to undo the
wrongs Of others as far as lies in his
power, though he had no part in them
and but little interest in the bank. 1t
! likewise shows the danger of having any
interest in a bank of which the control is
IL the hands Of others. The creditors have
come out well IN this matter, but at great
cos to one man who viii be hard pushed
to meet the obligations assumed.