The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-11-22
SENSATION DEVELOPS IN SUIT FOR
RECEIVER FOR THE SUPERIOR
STEEL COMPANY.
ROCKEFELLER PLOT CHARGED
LAND AND RIVER COMPANY FIGHT
ING THE PROPOSED RE-
ORGANIZATION.
TERMS OF THE DEAL REVEALED
Courts Give the Defendant Com
panies Time to File Their
Answer.
Special to the Globe.

Special to the Globe.
DULUTH, Mimi, Nov. 21-1n dis
trict court here this morning some
sensational developments were made
in connection with the West Superior
Iron and Steel company, and the pro-
posed organization by John D. Rock
efeller. Some time ago the receiver
OF the Land and River Improvement
company, Of Superior, began suit
against the steel company for the Sc
questratlon of the property, the en-
forcement Of the statutory liability of
stockholders and the appointment of a..
receiver in the state Of Minnesota. the
corporation being formed under the
laws OF Minnesota. The steel company
is already under a receivership. and
Howard Morris is receiver.
Ihls morning the Land and River
Improvement company, represented by
John ID. Rockefeller's local attorney, ap-
peared to have a receiver appointed,
presenting an affidavit Of no answer
and Howard Morris consent In the ap-
pointment of Minnesota receiver The
Ashland Iron and Steel COMPANY
which filed a judgment for $4,000 in
this court two days after the improve
ment company's suit was filed. the
Pittsburg Iron and Steel Engineering
company, creditor for $780, 900. and the
Minnesota Blast Furnace company. a
creditor for $4,000 all appeared In op-
position to the appointment, arguing
for weeks delay, and from their ar
guments it was developed that these
creditors thought they say a. niger
In the woodpile, and also that there ia
81 me
these creditors to the Rockefeller re-
organization. 1t was claimed that the
Land and River company claim has
been paid, which was denied.
They showed that the Superior Steel
company has neither a dollar of prop
erty In this state nor a stockholder.
that the Land and River Improvement
company is the largest stakeholder of
the steel company stock, and they
charge that the proceedings were
brought to head off similar proceedings
oy the opposing creditors, and with q
view to the appointment of a receiver
favorable to the Rockefeller reorgani-
cation. The P1ttSburg company was
considering the plan of entering the
reorganization, but yesterday it decided
to keep out of it. The terms of the re-
organization were also developed dur
ing the argument She creditors are
asked to take stock to the amount Of
their claims. The opposing creditors
appearing today and the only ones who
oppose the reorganization.
The plaintiff alleged that the court
had no option but to Immediately ap-
point receiver, and that all the cred
itors would have an equal chance The
court held that the most pertinent
claim Of the opposition was that the
claim Of the Improvement company
had been paid.
This afternoon G. P. Knowles, rep
resenting the Ashland Iron and Steel
company, filed an affidavit stating that
representatives Of the bondholders
made a proposition to the creditors
to settle all claims by paying them in
stock of the reorganized company, and
that they represented to him that all
creditors except the Ashland and Pitts
burg companies had agreed to this
and had settled their claims. He ex-
pected to be able to show that the
land and river company has sold its
judgment and has no claim against the
steel company. On this showing the
court gave the opposition until Wednes-
day to serve an answer setting up
these allegations and the case will
come up next Saturday.