The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1906-02-23
Receivers Take Charge of WI
deII-FinIey company's Office.
CASH IS NEEDED TO GO on
If It Can Be Raised, Interests of The
Creditors Will Thrive; Liabilities
May Reach $3OO,O0O.
From Thursdays Daily.

ley company, w. j. Merchant, Fred KrOn
and John A. Nelson, the latter of Min
neapolis, have virtually taken possession
of the company's property. Their bond
has been placed at $4,000, and it will
be furnished as soon as certain matters
can be adjusted. When this has been
Improved, they will take formal charge
Mr.. Nelson, who is a railroad contrac-
tor, arrived in the city last night.
1t is the desire of the receivers to
carry on the business of the company in
order to save as much as possible to the
creditors, realizing that were the COM
pany to surrender its contract work the
loss would be extensive, while on the
other hand if the work can be allowed
to progress to finish the creditors will
at least receive the major portion of
their claims In order to proceed with
the work, about $4,000 in cash will be
needed, but the resources of the company
have been stretched to the limit, and the
money will have to come from outside
Whether the contracts will be completed
will depend upon the raising of the nee
essary funds.
The liabilities of the company are,
roughly speaking supposed to be about
100000 Senator Eberhart has figures
showing $3l7 900, but some of the items
are believed to be duplicated. A. R.
Pau, Jr., attorney for some of the local
creditors, has figured that the liabilities
are $3.50, 900, but Gen. Widell, president
of the company, states that this figure
is too high. He states that they will go
somewhere from 100000 to 100000. As
to the assets, nothing can be said def
nitely, for if the work is completed, they
will be far more than if the contracts
have to be thrown up. The company has
1925 900 invested in machinery and tools,
but these would bring but fraction OF
the cost price if disposed of at forced
sale There is also due many thousands
in percentages that are held back on con-
tracts. Then there is the property that
is covered by mortgages.
Counting the secured claims, the
greater part of the claims are held by
Mankato parties. Nevertheless there are
large claimants in Minneapolis, st. Paul,
Chicago and number of other cities,
these being firms that have furnished
machinery or supplies. The MankatO
claimants are mostly parties that furn-
ished money, although there are a few
merchandise accounts. c. r. Fowler, an
attorney of Minneapolis, is in the city
representing certain creditors in that
city.
Senator Eberhart is creditor of the
company to the extent of 1921 900 for
money loaned and paper endorsed, be-
sides endorsements to the amount OF
5000 on notes. He put all of this IN
during the last two months, and did 1t
because he was on bond for So 800 for
the Belle Fourche work, the other bonds
men being w. G.. Hoerr, Fred Kron and
L. r. Coughlan. When he realized that
none money was needed to carry out
he contract he put it up in order tc
protect his bond, hoping by making a
further investment to protect the liza
bility that he had on his bond, All of
the property that he has is tied up
with the failure. He did not know how
much the company owed when he went
in deeper and deeper.
The company furnished surety bonds
on the other work that it has, $4,000
on the Glendive work, $4,000 on the
Santa Fe work, and $4,000 on the Big
-Four contract OF the surety bonds, the
American Surety company put UP $780,
600, the Aetna $1,000, and the Empire
State $4,000.
L. N. Griffith is involved by the fail
ure, having loaned money to the COM
pany, mortgaging his property, includ-
ING his residence to do so. Messrs. Eber-
hart and Griffith must present their
claims as general creditors. 1t is hard
to see the savings of years swept away
in a few weeks.
The Widell- Finley company has been
in existence something over a year, and
during that time worked up an immense
business. The contracts now on hand
foot up to ST 100000 and are scattered
through eleven states. Among the larg-
er ones are sections of the Fort Buford
irrigation project near Glendiye, Mont,
the irrigating canal near Belle Fourche,
S. D., and railway bridge or grading
work for the Chicago & Northwestern
road at Manitowoc, Sheboygan and
Wausau, Wis, Winfield, and Lombard,
III. and Lake Benton, Mimi, for the
Santa Fe road near FL Paso, Texas; for
the Illinois Central in Kentucky and
Southern Illinois; and for the Big Four
in Illinois and Indiana. The company
has also had large contracts for ditch
work in Faribault and Martin Counties.
Some of these contracts have yielded
a nice profit, or at least would if they
could be carried on to completion. while
on several the company came out trifie
behind, owing to wet weather and other
causes beyond its control.
/ The capital stock of the W'idell- Fin
ley company was but $4,000, although
this was last week nominally increased
to 100000 The company, as stated
yesterday had altogether too small cap
ital at its command to carry such a
large amount of contract work, requir-