Crawford avalanche. (Grayling, Mich.) 1879-19??, 1898-01-20


absconding OF Mr.. Staley, the subse-
quent action of Mr.. Trench, the CON
Duct OF the attorneys and the COM
mittee, and what should and should
not have been done, that we propose
to give brief history Of the whole
matter. that the facts may be known
and all may draw their own conclu-
sionA
The Grayling Exchange Bank was
esta blished here In January 1887, by
John Staley, who afterwards formed
q co-partnership with Chauncey G.
Trench, of Bloomsborg, Pa, and con-
Linued the business which was appar-
emily prosperous to the close Of basi-
ness Oct. 3Oth., 1897.
Mr.. Staley had been an explempary
citizen and won the confidence of the
entire community, holding many po-
sitions of honor and trust to the sat
isfaction OF all concerned.
The morning of Nov. Ist., the bank
did not open as usual and at a later
hour 1t was found that Mr.. Staley
had absconded, leaving the bank
with no available assets and q def
cheney Of about s25, 100000.
Three writs of attachment were Is
sued, In favor of Sailing, Hanson &
Co., Geo. L. Alexander and Mrs. J.
E. Mcknight, and all property in
sight was attached. The attorneys
Ia these cases with numerous credit
ors had an informal meeting and all
agreed that the loss was so general,
and Ia many instances % peculiarly
distressing, shat no preference should
be shown, and no advantage taken,
but that all creditors should share
and share alike, and with that end
In view, steps were Immediate tax
en- for the appointment OF q Receiv-
er. The necessary papers were pre-
pared, and Mr.. ]. X. Wright went to
the Court with a petition, securing
the appointment of Marius Hanson,
who had been selected at q public
meeting of the credit re-, and the
property OF the company and of the
individual members of the firm was
taken possession OF by that officer.
Mr.. Alexander went to Pennsylva-
MIA to see what could be done to Sc
cure the creditors by attachment or
otherwise on the property of Mr..
Trench. Arriving there and advis-
ing with the best counsel obtainable.
he found the law different from here,
in that the claims could not be con-
solidated and all brought In single
suit on attachment, but that separate
suits would be required for each
claim and that no attachment could
issue to foreign creditors until judy
ment was obtained.
At this stage Mr.. Trench appeared
with his attorney and made two
propositions for sediment of his liza
bility. one that he would turn over
certain property In Florida, the
Commercial House, and all the per-
sonal property of the bank in this
state, or In lieu of the Florida prop
erty he would pay SIC, 200 in money.
Mr.. Alexander returned, and the
propositions were presented to the
creditors at . public meeting, who
accepted the proposition of cash and
property.
The attorneys and committee at
once proceeded to prepare all the
necessary papers to carry out this
plan OF sediment, and pending this
work the correspondence following,
was received, which we believe
proves, that all were acting in good
faith up to the present month.
On the receipt of the last letter q
meeting OF the creditors was called,
but no plan of action decided, as
some of the creditors took the posi-.
tion that all actions past were void
aud illegal, aud those who had been
most active, were denounced In un
stinted terms. Finding that nc
agreement was likely to be promptly
reached, Mr.. Hanson consulted with
his attorney, and some of the heav
lest creditors, aed on Monday nigh,
Mr.. Alexander started south to lool
over the situation and take sucf
action as vas deemed best.
Regarding the individual propert,
OF Mr.. Staley IL has all been deedet
In trust to Messrs. Wright and Pal
mer, including their homestead
which has been sold for 81, $50, 90
and Mrs. Staley has executed deet
for her property at St Ignace, which
is believed to be valuable, and tn,
trustees are working to convert TIM
property into cash at the earlies
possible moment, that 1t may be dis
tributed.
We ask all interested to read tn,
attached correspond carefully