The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-07-18
FOR 4 SETTLEMENT
PLAN DEVISED FOR A. N. DRAKE
TO MEET ALL HIS OBLIGA-
TEONS.
CONDITION OF HIS AFFAIRS
SET FORTH IN A PETITION FILED
BY BANK OF MINNESOTA
RECEIVERS.
THEY ARE IN FAVOR OF THE PLAN.
And Ask the Couri to Give Its Ton
sent so Far as Their Interests
Are Concerned.

According to a petition filed in the
district court, yesterday afternoon, by
Receivers Seymour and Lightner, OF the
Bank of Minnesota, y. Nj. Drake IS IN
debted 10 various parties, including the
bank. in a sum exceeding $242,OO0. The
petition alleges that Mr.. Drake is ur-
able to meet his obligations, and asks
the consent of the court to an arrange
ment whereby Mr.. Drake may transfer
all his real and personal property to a
company recently organized under the
title of the Drake Realty company, for
the purpose of raising a fund 10 effect a
settlement with his creditors.
The petition rectes, first, that the
Northwestern Cordage company owes
the Bank of Minnesota on notes, the
sum of $21, 372, and that y. NJ. Drake is
liable for the amount as accommoda-
ton maker of the same; that Mr.. Drake
is also liable as accommodation maker
of other notes of the Northwestern
COrdage company, to the amount of
$500 eco, and that the entire amount of
his Indebtedness, aside from contingent
liability, is $242, 124. The receivers de-
Glaze that they have no other security
for the Indebtedness on the notes than
twelve first mortgage bonds on the
cOrdage company's plant of the value
of $4,000, with the exception of the in
-dorsements of the cOrdage cOmpapy's
officers, who are alleged to be finan-
cially irresponsible. They further al
leSe that the cordage company is in
solvent, and that Mr.. Drake is unable
to meet his obligations.
Continuing, the petition says that a
corporation known as the Drake Realty
company has been organized with an
authorized capital of $4,000, divided
into 1850 shares, and that all of brakes
creditors, including the petitioners, have
agreed to. the following proposed plan
Tor the settlement of brakes liabilities:
That he, Drake, transfer to the Drake
realty company all his real and per-
Sonal property, estimated to be worth
SEOO,OOO That the creditors holding
claims agaiSt Drake to the amount of
$242,l24, assign such claims to the re-
atty company, including $125,O0O first
mortgage bonds of the Cordage COM
pany. That all the stock of the Realty
company, except 324 shares, shall then
be issued to said Drake, and by him
transferred to creditors holding claims
against him amounting to S242121
mat 324 shares of stock of the said
Realty company shall be issued to a
trustee, who shall hold the same for
the purpose OF raising a fund to settle
any contingent or unpresented claims
against Drake, and divide the balance
PRO rata among all the creditors re-
ferred to in the petition
The receivers OF the Bank of Mime
sofa are to assign the obligations of
the Cordage company to the bank.
amounting to $21, 1872, to the realty
COmDdnV and ra1aa co T0ro1,o f,o,.,
personal liability. The receivers are
also to assign to the realty company
the $4,000 worth of first MORTGAGE
bonds held as security for brakes in
debtedness of $21, 1872, and receive there
Tor 2l4 shares of the Realty company's
stock. ="
The proposed plan to which, it is al
legged, all the creditors of Drake have
agreed, further provides that all prop
erty owned by Mr.. and Mrs. A. NJ
Drake in common shall be transferred
to a trustee, who shall, within ninety
Gays, transfer the same to the realty
company in case no insolvency pro-
ceedlngs are begun against Drake in
the meantime
The transfer by Drake is to include
all his real and personal property. ex-
cept the homestead and certain stock Of
nominal value that might become a
liability, and except Mr.. brakes inter-
est in the building on Sibley street. be-
tween Third and Fourth streets, which
interest has been sold by Drake to
settle his Indebtedness to his mothers
estate. His interest in his mothers es-
tate is to be transferred, however, with
the rest of his property.
Inc receivers of the Bank of Mime
! sofa say they are satisfied with the
proposed plan and ask the permission
OF the court to carry it out.