Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-10-01
Assignee Had Money Ready to Pay the
Men and Arrangements Made to Sc
cure $4,000 Additional Personal
Property When Bankruptcy Proceed
inss Spoiled All.

overthrow all the plans made by g
vast majority of the large creditors
whose representatives and attorneys
had all agreed that the voluntary as
signment under the state law and sub
|ject to the orders of the state court
was the best method Of realizing or
the assets, is aggravating to an extreme
and there are few citizens here who
do not suspect the lawyer of causing
the trouble merely for the fees he might
get out of it. Under the circumstances
lit is unfortunate for Mr.. l.. B. Good
rich that he has been made temporary
trustee since he is being severely
blamed for being implicated in pro-
|ceedings of this kind. Those who know
Mr.. Goodrich know that he is not the
man to engage in any unfair busi-
ness and he undoubtedly did not know
what had been done when he was asked
by the United States court to act as
temporary trustee in bankruptcy
Should he continue as permanent trus-
tee he will undoubtedly carry out
the same plans as MI. Greene had UNI
der way.
1t is very unfortunate that this turr
of affairs has taken place. After the
larger creditors whose claims amounted
to the thousands had gone over the sit
uation each for himself all had settled
upon Mr.. Greene as the man who could
accomplish the most with the property
He had already made arrangements to
raise the $1,000 due the workmen in
unpaid wages and checks We're being
drawn that morning for the various
amounts but We're not issued. In adj
dition to that he had arranged Tues
day to receive in the neighborhood OF
$4,000 additional assets. in the shape
of personal property held by the stock :
holders, which they would have volun-
tarily turned over. These new assets
were the elegant new Carmean home,
valued at $4,000; a mortgage on the
b. A. Rhoades home. for s1,5OO; the
dividend notes claim held by Mrs.
Minnie Rhoades. for 1000: an equity
in real property held by Mrs. M. A.
Rhoades, for $4,000; and note held by
Mrs. N. A. Carmean, for $4,000. These
aggregate $35.400, which would have
placed the creditors in much better
way toward realizing on their claims
Now that the company is thrown into
bankruptcy the personal property can
not be attached to satisfy the cred :
itors.
Mr.. N. T. Guernsey, OF Des Moines,
who was here Tuesday representing the
receiver, Mr.. Goodrich, denies that he
is appearing for any of the editors
who are responsible for the company
being thrown into bankruptcy. In
speaking of the turn affairs had taken
he said:
"The advantage of the receivership
Is that 1t places things on legal basis.
II there are several hundred creditors
and the company has made an assign
ment any three creditors holding claims
aggregating over $500 can overthrow
the entire assignment proceedings. and
then the assignee would not be entitled
to compensation. nor would those em-
ployed by him in the protection and
preservation of the property. think it
Is obvious that no conservative business
man would undertake to run the prop
erty long on that theory.
IF it is contemplated that the factory
should be operated again, it would not
be possible to start it on basis of an
assignment, because it would be neces-
sary to raise the money to manufacture
the raw material and that could not be
done without having the factory on a
sound basis.
Il can say for the receiver that he
has no utilization that will embarrass
him in being absolutely fair in the adj
ministration of the estate. What the
receiver now has in mind is to complete
the inventory and ascertain the situa-
ton; What 1t will cost to manufacture
the stuff now on hand. Then he Will
call the creditors together as far as
they can be reached. see what is desir-
ed In going on with the business, and
confer with them about the policy to be
adopted. I think he has no definite
plans further than that
"The difference between the two pro-
ceedings is that one officer is called a
receiver and the other an assignee. The
duties and powers are substantially the
same, but the receiver is acting under
the law, with the legal method of wind
ing up bankrupt estate, while the as
signee acts under the state law, which
has been superseded by the federal
statutes Assignment proceedings are
now treated by the courts as a con-
structive fraud on the bankrupt law"
The several local attorneys acting for
various creditors all agree that Mr..
Guernsey is stretching, point to give
his action an air of responsibility. They
claim that while 1t is true that the fed
oral bankruptcy statute is the superior
law in this case to which they must
yield when it is invoked by three credi-
tors saggregating $500 or more in claims
it nevertheless remains that the volun-
tary assignment under the state law
would have been no less legal SO long
as no one invoked the superior federal
statute The idea that the bankruptcy
law annuls all state law on this subject
and makes of proceedings in assign
ment a Constructive fraud" upon the
bankruptcy law is ridiculed by them.
However, Mr.. Greene admits that pro-
ceeding as an assignee would have all
ways been open to this same attack BY
any other three dissruntled creditors
and might have come later Il not now.
When q permanent trustee is ap-