The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-08-24
All Mr.. Deylin's Companies Be-
ing Thrown Into Bankruptcy.
Found That the Voluntary Pro-
ceeding Was Irregular.
KEEPING IT SECRET.
Attorneys and Court Officials
Are Silent.
This Has Caused Delay of Credi-
tors Meeting.

Involuntary proceedings in bank
ruptcy are being filed against all of the
minor companies of the DevIin corpora
ton and for that reason the creditors
meeting has not yet been held. Six of
these in petitions have been hled in the
United States district court at Topeka
during the month of August. Probably
four or five more will still be instituted.
We are doing this to get everything into
shape. 1 think that I am safe in say
ing that involuntary proceedings will
be brought against all of the different
companies of the Devlin corporation" :"
In this statement, Clifford Histed, Mr..
Devlin's personal attorney, today gave
out the first intimation yet divulged
why the creditors meeting was not
held thirty days after the voluntary
petition in bankruptcy was filed.
1t also brought to light the fact that
the voluntary petition was not just ex-
actly according to law. The statutes do
not permit voluntary surrender to the
court of corporation in which there
are number of separate distinct COM
| panies all under one head. No one pro-
| tested at the time, so naturally it pass
ed and was allowed to remain. Now
| before the creditors meeting is to be
held, to have everything in strictly
customary order, all of the minor Dew
lin concerns are being subjected to in
voluntary proceedings.
Mort Albaugh, clerk of the United
| States district court was at once asked
| this morning for the six involuntary
tpetitions filed here during the past fou1
| weeks.
Il cannot give them out" he replied
| "Why?' was asked.
Because it is not the custom to dc
so,' was his rejoinder. we never give
them out in instances of this kind.
Mr. HiSted was then informed Of Mr.
Albaughs refusal and was asked tG
name the companies which had beer
| proceeded against.
Il will first have to see Mr.. Albaugh,
was his answer. Il do not want to DC
| it until l talk to him..
rs the Southwestern Fuel company
of Topeka one of them?' was asked o
him.
Mo- he replied
will all of the minor companies b.
proceeded against?''
II think that you will be safe II
saying so,'' he answered.
when will the creditors meeting
be held?"
I'm due season. he replied.
What about the talked of holding
company among the creditors to form
a trust concern and take the matter
out of the court?"
1--WE are not considering that any
|
Histed concluded the interview. Ht
would not detail any reasons for hi:
statements.
In this manner the public becomes
| acquainted with what has been going
on lately concerning the handling o.
the Devlin estate. All of the minol
companies, according to Mr.. Histed
will be subjected to involuntary bank
ruptcy so as to get the thing in proper
shape before the court.
Mr. Histed would say nothing con
cerning the iIlegality of the voluntary
proceedings, but a well posted attorney
in this city who has watched the case
very closely was asked about it anc
said: 1.-The voluntary proceeding was
not exactly legal. The bankruptcy ac
says that "A corporation cannot take
such step. There is really no gooc
reason for it that 1 know of. These
involuntary actions are being taken 81
| as to get the whole matter into shape
to present to the court, SO that wheT
the depositors' meeting is finally held
no one can step in and say that some
of the action may be Illegal
Summing up the whole matter moth
ing can yet be definitely said concern
ing the time at which the creditors
meeting will be held. The first verba
announcement was for August Z. bu
| that went by with a hint at September
Z. But there is need of building or
that date. Mr.. Histed says that it vii
be held in "due season"