Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-05
THE TOPEKA FAILURE
Further Particulars Regard
ing Devlin's Financiering.
PETITION FILED TODAY
PETITIoNING CREDITORS REPRE-
SENT CLAIMS FOR $4,000.
Runs on Other Banks Apparently Over
Receiver of First National
Begun Work.
PETITION FILED TODAY

Topeka, Kan. July 5--A petition to de-
the United States district court today in
behalf of Kansas City creditors.
The petition was filed upon behalf of
Thomas Lightfoot. John A. Long and the
Long Bros Grocery Company of Kansas
City, Mo. The claims of the petitioning
creditors aggregate s, ,000
The effect of the action In bankruptcy
will be to set aside the transfers of prop
erty which have'been made by Mr.. Devlin
recently, except the transfers of life insur-
ance, which were made payable to Mrs
Devlin. The transfer of real estate to the
First National Bank, which was made by
Mr.. Devlin on Monday following the clos
ing of the bank, will be set aside as will
also the attachment of Devlin property
made later at Kansas City by the National
Bank of Commerce. AS the real estate
which Mr. Devlin transferred to the First
National Bank here on Monday was valued
at about 100000 the action begun today
on the part of the creditors will reduce the
assets of the bank to just that extent.
The petitioners represent that when Mr..
Devlin assigned his property to the First
National Bank of Topeka on July 3 he was
then insolvent, and that such transfer was
made with intent to make the failed bank
a preferred creditor. The petition will pre-
vent the running of further attachments on
the Devlin property.
1t is made returnable on July 20. In the
meantime Mr.. Devin may file a confession
of bankruptcy or file answer denying
the acts of bankruptcy and ask for trial
by Jury.
The trustee in bankruptcy, who will be
selected by the creditors, would have the
tn FOL ka
after converting the assets into cash, APP
portion the proceeds equally among the
creditors.
controlled by Devlin. failed on July 3. it
was known that the Devlin estate owed
both the Spring Valley National Bank of
Spring Valley. Ill.,. and the First National
Bank of Toluca, ILL.,, which closed their
doors today, and the suspension of the latter
institutions was expected to follow as a
natural result.
Runs on Bank Stopped.
Just what amounts the Devlin estate owes
to the two Illinois banks is not known but
it Is stated that they became involved in
loaning money to build the Toluca, Mar
quette and Northern railroad. small coal
carrying road, which Mr. Devln was con-
structing to his mining property in that
state. This road connects with the Atch-
son, Topeka and Santa Fe, the Illinois Gem
trail, the Chicago, Milwaukee and st. Paul.
the Chicago and Alton and the Indiana,
Illinois and Iowa railroads.
Negotiations are already in progress, 1t Is
said, to sell this railroad property, which is
considered valuable asset.
PEORIA. ILL.,, July 3D.. A. Cook, nation
al bank examiner, who was appointed re-
ceiver of the Spring Valley National Bank
OF Spring Valley ILL.,, refused to make a
statement today as to the condition Of the
banks finances the amount owed the
bank by the Devlin estate. There was no
| run on the institution when Its doors were
closed.
| Runs on Topeka banks. which started on
| Monday, following the failure of the First
| National Bank. had apparently been stop
| ped when the Institutions opened for busi-
ness today. A small crowd gathered about
| the First National Bank, but there was no
| excitement All banks from which de-
| positors had withdrawn money on Mon
| day had further fortified themselves over
/ the holiday of yesterday. and at each bank
| the officials stated that they were better
| than ever able to meet all demands.
| Receiver Brady of the First National
Bank began work today on the books of
that concern, but no statement was avail
| able for publication regarding its condi-
! ton and none was expected for some time
yet. c. S. Gieed and Clifford Histed, mem
4 bers of the creditors committee. named al
Kansas City. were in the city and held con-
ferences with the bank officials In an en-.