Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-01-22
Much Litigation Will Result
from the Bankruptcy Case
of Scheiber & Merrick
ASSETS NOT ALL SCHEDULED
Suits Likely to Be Commenced in
Black Hawk, Grundy and 7arna
Counties to Recover the Assets of the
Firm Not Scheduled With the Peti-
ton in Bankruptcy.
special to Times-Republican.

Reinbeck, Jan. ,22.-The involuntary
bankruptcy proceedings that were
brought by credit0s Of Scheiber &
Merrick last December give promise to
develop into suits galore in the district
courts Of Grundy and Tama counties.
Aside from the actions to be COM
menced here and in Tama, a few will be
brought In B%lackhawk. The first meet
ing OF creditors has Just been held, at
which Martin Nee, of the First Ma
tional Bank, Gladbrook, was elected
trustee. The meeting was held before
W. p. Hoxie, referee in bankruptcy for
Blackhawk and Grundy counties.
w. H. Scheiber and Frank S. Mer-
rick were operators os a line of cream
cries located in this place and Grundy
Center, and Berlin, Dinsdale, Crystal
Center, Clutter and Dysart, Tama coun-
~. About the middle Of December the
creditors Of the company in and about
untary bankruptcy, and the company
itself, on Dec. 10, went into voluntary
bankruptcy, fling its petition with the
schedules attached. The involuntary
petition held, because of its having pre-
coded the other, altho since that time
the two have been consolidated in or
der to save the fling of another sched-
ule of the liabilities ard assets.
The work Of Trustee Nee will now
be to get hold Of the assets, and 1t will
be for this purpose that actions will be
commenced by him TO recover certain
assets of the firm, not scheduled as as
sets. The liabilities are scheduled at
about $500, and the assets about ST.
700. The actions to ecover on the
property OF the bankrupts alleged not to
be scheduled will be begun in the oun
ties where the parties now holding 1t
reside, which are principally Grundy
and Tama. One suit. at least, will be
brought in Blackhawk. The suits ag-
gregate about $500.
Some testimony was introduced at
the meeting of the creditors that was
quite startling In nature. MI. Scheiber
testified that his firm did not W any
Canadian lands, which was generally
understood to be the case. It was found
in the examination that about Oct. 20
he sold to Cashier Porter, of the State
Bank OF Reinbeck, a certain portion Of
the Canadian land, which Mr.. Porter
Immediately applied on 5000 OF Schei-
ber's personal indebtedness.
Mr.. Scheiber also testified that short
lv before the firm filed it's petition In
bankruptcy it had In the bank about
1882. and checks on that deposit were
drawn in favor Of farmsrs for cream,
milk and hauling. even up to the day
before the petition was fled also that
the money was drawn out OF the bank
before the creditors could cash their
checks, and used to pay a number Of
Individual claims against himself.
The examination ELECTED such infor-
nation as will warrant the trustee to
commence the necessary proceedings to
recover a considerable amount OF the
assets OF the firm not scheduled as such,
and a merry time Is expected in he
next term OF court in this (Grundy)
and Tama counties.