The Savannah morning news., 1904-03-05
WAS SILENT PARTNER
IN GRAIN BUSINESS
Mr.. John Sullivan schley Was Con-
nected With Mr.. II. j. Davis.


nected With Mr.. II. j. Davis.
At the first meeting of the creditors
of Mr.. T. j. Davis, bankrupt, held
yesterday before Referee MacDoneIl,
it developed that the greatest losers
on account of the failure will be
Messrs. John Sullivan Schley and ].
w. Schley.
Mr.. Davis was placed on the stand
and testified that Mr.. John
Sullivan Schley was silent
partner in the grain and feed
business, and had furnished the
necessary capital to establish the buSi-
ness and had also furnished consid-
cradle sums of money to the business
| during the last two years.
The original contract of partnership
was called for. but Mr.. Davis said
he had been unable to find his copy.
He thought, however, that Mr. Schley
| had a copy of the contract in his
possession. Mr. Schley went to his
Office and found the contract. 1t was
found that the contract had been
| drawn up and witnessed by Judge A.
H. MacDonell. the referee in bank
| ruptcy, before whom the bankruptcy
case is being heard.
The stipulations of the contract were
| that Mr.. Schley was to furnish $12, 900
with which to establish the concern,
and Mr.. Davis was to give his entire
time and attention to the business.
| The contract also stipulated that the
business was to be run in Mr.. Davis
name; that Mr.. Schley was to re-
main silent partner and his con-
| nection with the company was not to
| be made public. The contract was
| drawn for a period of five years and
expired in 1895, but the business had
been running under the same ar
rangement and no settlement had been
made at the time the petition in bank
ruptcy was filed.
There was about twenty creditors
at the meeting but Mr.. Davis said
there were nearly 100 local creditors of
| the concern. The total indebtedness
of the bankrupt concern amounts to
$51 500. The principal claims against
the company are as follows: James
w. Schley. $n0,654.45; John Sullivan
Schley, account of partnership, SILL
ITO; estate of DR.. ]. S. Schley and Mrs
M. A. Schley, $3.50; Moore & Co.,
| 81, 900; mortgage on real estate, $4,000.
demand loans, 1881; r. F. Browder,
$4,000.
The examination of Mr.. Davis was
conducted by Mr.. A. l.. Alexander. Mr.
| DAVIS was questioned particularly IN
| regard to the loan of $4,000 from Mr.
| James w. Schley. He testified that at
the time this amound was borrowed
from Mr.. Schley it was agreed that
| the mortgage which was executed at
| the time as securityN was not to be
| recorded. When asked the reason for
not recording the document, Mr.. Davis
said he had borrowed the money to
pay off some floating debts and he
| explained to Mr.. Schley il the papers
was recorded on the books in the Of
| flee of the clerk of the court it would
have the tendency to damage his bust
ness to a great extent, and for this
reason it was mutually agreed that the
| mortgage was not to be recorded. Mr.
| Davis testified that nearly $4,000 OF
| this amount was used in paying off
| obligations. When certain papers went
| to protest, he said, the document was
then recorded in accordance with the
agreement which he had with Mr.
Schley.
Mr.. Davis was represented by Mr.
w. G. Charlton. 1t was disclosed from
the testimony of the bankrupt that
the assets amount to about $23 600
| which includes the stock in trade, the
equity in the real estate of Mr.. Davis
and the collectable accounts due the
company. The accounts due, which
are considered good, amount to about
SO, 000
The creditors elected Mr.. John E.
Schwarz as trustee, and he will al
once take charge of the property and
books, and look after the settlement
| of the case. He was elected by a
| unanimous vote of the creditors