Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-07-25
Sensational Disclosures II
Which the Callahan Estate
is Involved
CREDITORS MAKE BIG CLAIMS
Jas. L. Callahan Disappears and It is
Claimed That 100000 Which He
Borrowed Is Due the Creditors
Mines May Be Seized to Satisfy the
Claims.

Des Moines. July 25.--Sensationa.
disclosures are imminent in the adj
justment of the difficulties which have
arisen in Mexico with reference to the
foreclosure of the mortgage to secure
the bonds of the Mexican National
Iron and Steel Company, which owned
the iron mines with whose exploitation
the late James Callahan and James
Leonard Callahan. his nephew. were
connected.
The young man, to all intents and
somewhere in America. presumably IN
Texas, whittier he went after short
soiourn in New York following his de-
parture from Mexico.
The difficulty which has arisen is in
the form of Intervention of New Mex
lean creditors who claim liens on some
of the property which the mortgages
securing the bonds OF the, company
seems to cover.
The existence of these new creditors
has been disclosed by their proceedings
in intervention and by the books OF
the company and by collateral pro-
ceedings in which another American
company, the American Land. Lumber
and Fuel Company. located about sixty
miles from Durango, is Involved by
the creditors of the iron company, IN
their effort to collect.
Creditors Claim Money.
vCl,o.o orad;torc ara understood to
claim that the young Mr.. Callahan
negotiated loans from them amounting
to perhaps 100000, Mexican money,
on the notes of the iron company,
countersigned by himself The notes
were placed with banks in Mexico.
which are the claimants now proceed
ing to intervene in the foreclosure
proceedings referred to.
The trustees of the Callahan estate,
Of course. contend that the liens OF the
new creditors do not cover any of the
property which they seek to have in
cluded in the lien secured by mortgage
and represented by the bonds of the
iron company. Their contention is that
the liens represent other property alto
gether. This is a matter which re-
mains for the courts to determine, as
the case is understood here.
The sensational features Of the case
relate to the rumors which are in
vogue. but which ha . not been veri-
fed as to the disposition OF the pro-
ceeds of the notes given by young Cali
lanan to the Mexican banks. The dis
closures made by the books Of the
company are not all known in Des
Moines. 1t is understood that there are
indications that the proceeds of the
loans went into speculations and that
large sums of money We're lost in this
way. Des Moines friends of Mr.. CAL
lanan are 10th to believe rumors Of
this character and will not do So.
Had Complete Control.
Mr.. Callahan was the absolute man
ager of the company's business In
Mexico during the later lifetime of his
uncle and had full authority to man
age it for its interests according to his
judgment. That the deals in which
he may have been engaged We're not
profitably carried on may be set down
to bad judgment or unfortunate cir
cumstances.
He was also connected with the land
and fuel company referred to and only
about $4,000 is involved in the trans