The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-08-26
WANT NO RECEIVER.
Coal Company Fight Bankruptcy
Proceedings.

Twelve answers were filed in the
United States district court today to
the pleading in the bankruptcy pro-
ceedings brought against the Home
Riverside Mining Coal company Of
Leavenworth by the Lake Shore Ma
tional Bank, the board of trustees of
Oberlin college, Dennison, Pryor & Com
pany and the Broadway Savings and
Trust company. 1t appears likely that
a stout fight will be made against the
effort to throw the Riverside concern
into bankruptcy court by the majority
of the stock holders interested in it.
The company is now in the hands of
receivers appointed on April II, last, by
Judge Hook of the United States cir
cult court.
There has been a great deal of conten-
ton over the affairs of the Riverside
company, principally among creditors,
for a period of two years In June 1902
the creditors of the company assumed
charge of the business, with the con-
sent of the stockholders. The company
was deeply in debt and the stockhold-
erS agreed to turn il over to the cred
itors to be operated for their benefit.
The bonds of the company were taken
up and cancelled, second mortgage
bonds were issued to the former bond
holders and to persons holding unsecur-
ed debts against the company and
a considerable amount of money was
raised to clear off a number of small
obligations, aggregating a few thousand
dollars Every one of the stock holders
agreed to the change. Since that time
the company is said to have opera ted
with much success.
However. at the time Of the reorgani-
zation for the benefit of the creditors.
Mrs. Mary F Mckibben held notes and
other evidences of indebtedness of the
company to the amount of $61, 900. 1t
was agreed that she should be given
bonds of the company covering that
amount. At the time of the distribu-
tion she received only a part of the
a 9nTnrfinnod her "a Rrna iva "
Savings and Loan company claiming
the einainder of the amount on the
ground that part of the notes, thus
to have been secured, had been deposit
ed in its care. One of the officers of
the Broadway company was a member
of the reorganized Riverside Coal COM
pany. Mrs McKibben attached the coal
lands of the Riverside company, which
in turn enjoined her from the prosecu-
ton of the suit. Pressure is said to
have been brought upon her husband
D. H. McKibben, then president of the
Riverside Coal company, to compel her
to dismiss her action, and on his failure
to do so he is said to have been forced
to resign his office in the company.
In April, 1903. several of the creditors
of the Riverside company secured the
appointment of a receiver for the bust
ness. A few weeks ago four creditors
brought an action to have the business
thrown into bankruptcy and a trustee
placed in charge of it. They alleged the
alleged that the company had COM
mitted an act of bankruptcy in favor
ing certain other creditors at the time
of the appointment of the receiver. N.
E. Van Tuyl, who is one of the answer
ing creditors as well as the attorney for
the entire number. filed the answers to
the bankruptcy pleading this morning.
In speaking of the case Mr.. Van Tuyl
declared that the company was per-
fecly solvent and was paying out it's
creditors in good shape. He said the
contention which has aroused the
bankruptcy proceedings originated in
the dispute between the McKibbens and
the Broadway Savings and Trust COM
pany. These two are on opposite sides
in the bankruptcy proceedings.
The answers to the bankruptcy petit
tion filed today are made by the Home
Riverside Coal Mining company, the
Central Coal and Coke company of
Leavenworth. Hattie f. Laing, John M
Laing, Mary F. McKibben, James L.
Byars, d. A. McKibben, the Home
Riverside Coal Mining company "a sec
ond pleading), n. E. Van Tuyl, the
First National bank of Leavenworth,
Mary Rush and H. D. Rush.