The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-10-28

The many creditors of the bankrupt
shoe house of TarboX, Schllck q co.
have begun another attempt to dis
cover and get possession of the alleg-
ed concealed assets of the firm. Judge
Lochren yesterday in the United States
district court postponed action on the
petition of the shoe men to be dis
charged from bankruptcy. Their petit
ton was filed in May last, an immense
amount of testimony has been taken
before Frederick G. Ingersoll, the ref
cree in bankruptcy, and the court
would probably have granted the APP
plication but for the objection, unex-
pectedly made yesterday. by crooks q
Fry, attorneys for creditors holding
about $4,000 of claims.
Judge Lochren gave the attorneys
twenty days to file their objections in
full. Among the forty or more credit
ors represented in yesterdays pro-
ceedings, are the United States Rubber
company, that has an unpaid claim
amounting to some $4,000; the Inter
national Trust Company of Boston,
$4,000; the Bankers National Bank OF
Chicago, 81 900, and eight or ten other
Chicago banks with claims ranging
from $4,000 to $4,000. 1t was stated
that Lawler & Arnold, on behalf of
other creditors, would today file further
objections to the petition for discharge
from bankruptcy.
Want Accounting of Profits.
The present effort in the federal
court to prevent the bankrupts from
obtaining a discharge from their LA
bilities is a corollary of the suit now
pending in the district court of Ramsey
county for an accounting for the profits
derived from the sale of their stock
and from an alleged secret agree
ment by which it is claimed the part
ners of the insolvent firm are entitled
to share in the profits of the business
now conducted with their old plant
at the state prison at Saltwater. Ihe
defendants to this action are W. B.
Jordan &. Bro, who purchased the
bankrupt stock and plant. The plain
tiff is Charles K. Sharood, who sues
as trustee in bankruptcy for the cred
itors of the insolvents.
When TarboX, Schlick & Co. found
themselves insolvent, more than two
years ago, Mr.. Sharood was appointed
trustee of their property on behalf
of the parties holding claims against
the firm. He at once proceeded to real
ize on such of the assets as We're mar
sketabIe, chief of which were the plant
and stock of goods at tbs prison,
where the manufacture of shoes was
carried on. These were transferred to
the Jordans. Mr.. Tarbox received
enough from this source and from
credits collected to pay q little over
Is per cent on the total liabilities,
amounting to some 100000.
= Secret Agreement Revealed.
The basis of the action in the county
court is the alleged discovery Of a Sc
cret agreement between the bankrupts
and the Jordans. This discovery be-
came public when Mr.. TarboX declared
to the trustee that the price paid by
the Jordans was not the full value
of the stock, but that they had agreed
with him to pay a further sum as a
share of the profits to be derived from
the sale of the goods, and also to give
him an interest in their business. On
learning of this relation between the
present proprietors Of the state pris-
on shoe factory and the banhrupts,
Mr.. Sharood promptly began the suit in
the county court.
His complaint sets forth at great
length the history of the steps by
which the bankrupt estate came into
his hands and the relations which, he
AYERS, were secretly established be-
tween the Jordans and Mr.. Tarbox.
Claiming, as trustee of the assets, to
stand in the place of Tarbox, .Schlick
& Co., he sues for an accounting Of
the profits due under the alleged
agreement. These are estimated vari-
ously, some of. the creditors believing