The sun., 1903-12-07
COY. ODELL STILL RECEIVER
or THE JACKMAN co., WHOSE
DEBTS WE'RE BOUGHT IN CHEAP,

And whose Assets in 1890 Jumped Up In
value-AppesF to iso Mere Than the
Debts-Seven Years Of Receivers-Cred.
itOr Sues TO Get Assigned Claim Back.
A suit at law entitled McAlpin against
Jackman has been noticed for trial at a
special term OF the Supreme Court to-day.
The plaintiff is George L. McAlpin, who
lives next door to Andrew Carnegie in
East Ninety-second street and is son Of
the late David II. McAlpn. who accumu-
lated fortune in the tobacco business.
Mr.. McAlpin is now retired from business,
but for many years he was a member Of
the firm OF Rose, McAlpin d Co., dealers
in leather in Reade street
The defendant is Andrew H. Jackman
Of Nyack, who was president Of the Jack
man Shoe Manufacturing Company Of
Nyack, which went into liquidation in 1893,
with liabilities of $4,000. The original
receiver for the company was James Cav
anagh of 8l8 Bedford avenue Brooklyn,
but he was removed in 1900 by Supreme
Court Justice Hirschberg of Newburgh,
who appointed Ben jamin b. Odell, Jr,
in Cavanagh's place, 1t being understood
that change was in the interest of the
ma jorty Of the creditors. Gov. Odell is
still receiver.
Andrew j. Bates and Jerome E. Bates,
members Of the shoe jobbng firm OF A. J..
Bates Co., of 2O2 Church street, and John
Cave, an employee of that firm, are named
as party defendsnts. The suit is brought to
rescind the assignment Of a claim Of SIS 900
held by the firm Of Rose, McAlpin Il Co.
Il. II. .r- IL
Company and made by Rose. McAlpin 4 Co.
to John Cave in 1898 in consideration Of the
sum of 5000. 1t was stipulated that Rose.
McAlpin Il Co. released all claim against
the Jackman company for the considera-
ton named in the assignment.
1t is charged in McAlpn's complaint.
however, that the assignment was pro-
cured by Jackman through misrepresenta-
ton and fraud, to which the Bateees were
privy, and for the purpose Of enabling
Jackman and the Bates brothers to get
control Of the only valuable asset Of the
Jackman company, namely, 3,iA shares
of the common stock and 1 $40 shares Of the
preferred stock of the United Shoe Ma
chinery Company, valued at not far from
$500 ,000 The par CT both kinds of stock is
$25. For some years the holders of the COM
mon stock have received annual dividends
at the rate OF 8 per cent. Recently the
stock sold at so. just twice the par value
of the shares. The common is said to earn
1s per cent. The preferred pays per cent.
The company did not have this stock
when it went into the hands OF the original
receiver. but il had stock of the Scott Last
ing Machine Company. then Of no market
value which was eventually exchanged
for the valuable stock OF the United Shoe
Machinery Company, or Lasting Machine
Trus,.'
This exchange was made while Cava-
nagh was still receiver The Shoe Ma
chnery COZ pnny dividends at the rate
specified have been paid siEce April,
1890 The common stock sold as high
as 40 that wear. az high as "a the next, as
high as 10 in 1901 and as high AZ 571+ in
1902, The preferred touched 33l, in April.
1872, At the lowest prices quoted since
1890 he market value Of the stock was
sl22.coo. and at the highest s2S2 100 The
leceivership went on.
4hort lie ,ime ia, stock OF the United
Shoe Machinery Company began TO pay
large dividcn,ls, Jackman So Mr. McApin
aIne"s. called on various creditors of the
op,l man She Manufacturing Company
and said that his relatives were willing
70 start him in business again. provided
he could get rid Of his share, Of the debts
Of the JackEnan company. He said, accord
ing 30 Mr. McAlrin, that he didn't want
the odium attached to going through bank
r1lh,y, ard so, al his suggestion, his friends
and relatives had agreed to put up enough
money TO enable him to acquire q ma jority
of the claims Of the creditors of the Jack
man company ii those creditors would ac-
cept 10 cents on the dollar for their claims.
Mr.. McAlpin assigned the claim Of
Rose McAlpin & Co. of s35,O00 to John
Cave, the person designated by Jack
man, for IS 600. Some time after the
assignment had been executed McAlpin
learned. go he alleges, that the money
to buy up the claims of the various credi-
tors Of the Jackman company was sup
piled by A. j. Bates 4 Co., the senior
member of which was a friend II Jack
man He finally learned, and the Bateses
made no denial of it. that A. j. Bates Il
Co had succeeded, brought Jackman, in
acquiring omething like 81 per cent. of
the claims of all creditors of the Jack
man company.
When Mr.. Odell was appointed receiver
in 1900 A. j. Bates Il Co. were the majority
OF the creditors. Last October, after
three years more of receivership. Re-
ceiver Odell sold to A. J. Bates d Co. the
entire holdings OF the stock OF the
United 8 hoe Machinery Company owned
by the Jackman company for $ls0,00o,
getting in ish about $4,000 and stipula-
tion from A. j. Bates d Co. to the effect
that should the claims Of Bates d Co.
gainst the Jackm0n company be finally
determined to be less than the balance due
from Bates d Co. to the receiver on the
United Shoe Machinery Company's stock,
Bates d Co. should pay the receiver the
difference.
Bates d Co. got the common stock at $4s
a share and the preferred stock at s2s
share. That was about the market price
Of the stock at the time 1t was sold.
In order to make the sale to Bates
4 Co. the Governor had to get an order
from the Supreme Court. Application for
the order was made by James McGregor
Smith Of Newburgh. the Governors cousin,
10 Justice Dickey Of Newburgh, who granted
I.
II is understood that other creditors OF