Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-11-02
Mcpherson Renders Decision In
Favor of Preferred Claims
In Green Cattle Case
WILL NOT PAY PART OF COSTS
Holds That tho Preferred Creditors
Will Not Be Compelled to Stand Part
Of tho Expense Of tho Reoeivership--
History Of tho case-Judge Green's
Loss.
Special to Times Republican,

Special to Timcs-Republican.
Council Bluffs, Nov. I'm an order
issued yesterday by Judge Mcpherson,
the preferred creditors Of the Green
Cattle Company, with the exception OF
the Commercial National bank OF
Council Bluffs, are exempted from
paying a proportion OF the costs and
expenses OF the receivership. The
order assesses $500 Of the expense
against the Commercial National Bank.
which, 1t was ruled, may have received
some benefit from the receivership by
virtue Of the fact that 1t held only a
Junior mortgage. The other preferred
creditors, who were stated to be fully
protected, and could not be listed a
mong the .beneflclaries of the receiver
ship, are A. Hanam, Omaha National
bank. and Smith, Carey Il Co.
The matter OF making the preferred
creditors stand portion OF the costs
OF the receivershlp was argued at the
recent term of the federal court. and
decision was reserved by Judge NC
Pherson. Under this ruling the small
err creditors will not participate fur
Their in the distribution OF funds. A
report just filed by the receiver, M. X.
Parsons, OF Salt Lake City, Titan.
shows a cash balance on hand Of $2s.-
1O478, with $4b,457.27 previously dis
~ rIHr <NF 1a
In announcing his ruling Judge Nc
Pherson goes into the history of the
case quite extensively, which. he says
"ls not foreign to the matter before
this court because 1t Is urged that II
the costs and expenses of the receiver
ship can be apportioned among the
creditors In proportion to their claims
all controverted matters can be ar
ranged by compromise. All courts
take a lively interest in aiding COM
promise. but this prospective compro-
mise cannot be made the basis OF an
order because Of objections which have
been raised" The claims Of the pre-
ferred creditors are taken up In detail
showing them to be previously pro-
tected and that the consent to the re-
should not jeoparylize their
rights. In preliminary review OF the
case Judge Mcpherson says:
'"rhe assts, after year and half,
have all been converted into cash ana
the greater part of 1t paid out, with a
reservation in all orders for payment
that the court retained Jurisdiction
over all parties These reservations
were inserted in all the orders. 1t was
the purpose Of the court that the money
should not accumulate, but be paid out
to those entitled to 1t, partly to prevent
further interest and largely to avoid
the vicious practice OF receivers and
banks having large funds for long
time without interest, too often used
for personal gain by others than credi-
tors and owners. 1t Is fully believed
at first that the cattle on the western
could be marketed during the
first year of the receivership, 1904, but
1t was found later that this would be
harmful to creditors and particularly
to the holders of the junior mortgages
While the delay would not benefit the
holders of first mortgages 1t could not
be harmful to them"
In his summary Judge Mcpherson
takes occasion to refer to the part
played in the proceedings by Judge
w. r. Green of Audubon, who became
involved through partnership with his
brother in the Dow City bank and In
the Green Cattle company, and states
in this respect:
"Under the law he was liable as
co-partner, but no more liable morally
than the veriest stranger Yet, in the
face of this fact, he has impaired his
health by worry and effort to secure
creditors every possible aid in settle
ment of a state Of affairs he knew moth
ing about and which he in no way
brought about. In addition to this he
tenders every dollar Of his property.
This situation has been much more
harmful to him than to any creditor
1t has been we'll nigh calamitous. He
had a competency aside from the as
sets of the firm while now in middle.
life he is left without dollar. Cred
itors should appreciate what he has
done since the collapse Of the bank at
Dow City and the consequent failure OF
the Green Cattle company. more of
surprise to him than to any creditor"