The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-06-18
AFTER THE MINES
Proposition Made to Take Devlin
Coal Properties.
Would All Be Merged Under One
Management.
GIVE CREDITORS BONDS
Also a Portion OF Their Claims
in Stock.
Judge HORNE Does Not Favor
the Plan.

a DTODOS1JiOn 10 take over ms 1SF
lin mines was made to the creditors OF
the Devlin estate this morning by w
L. Gary of New York city. represent
ing a firm of coal operators whose
identity he refused to disclose
The proposition contemplates merg-
ing the coal properties already held by
the company represented by Gary and
| turning over the management of the
entire properties to this firm of coal
operators. The creditors are to be
protected by an issue of first mort
gage bonds and a percentage of both
common and preferred stock in the
new company. the controlling interest
in the common stock being vested in
the operators making the offer.
I'VE propose to take over the Dew
lin mines. issuing securities to the
creditors in common stock. We would
retain the controlling interest in the
! common stock in order to keep control
of the management of the properties.
I am not at liberty to disclose who my
principals are. have called on Mr..
Horine and have referred him to a
bank as to the responsibility of my
| clients. We would issue. say about
$4,000 900 of securities. my clients tax
4 ing. say about 100000 and assuming
l that the secured creditors take 81
1 600, 900 and that about 10 per cent Of
the bonds would 60 to the unsecured
4 creditors
Mr. Gary was introduced to the
creditors by Judge HORNE of the
/ creditors committee. Cross question
] ing on the part of the attorneys pres
| ent revealed the fact that Mr.. Gary s
plan was largely still in the specu-
/ 1ative stage.
1T is largely only in a tentative
| stage" he said by way of defense. A
/ part of the assets of the new company
! would be the successful n1anag cement
| which my Interests would bring TO
| bear They have made a success of
managing coal properties and their
mines are located about in the same
district as those of the Devlin mines.
We would be prepared to manage the
mine SO that they would pay an in
/ terest of per cent on an issue OF
securities of about $4,000, 000."
! The creditors met in the rooms of
| the United States circuit court at II
O'Clock this morning with n. H
Loomis, referee, presiding.
| An adjournment was taken until
later in the day and an attempt will
be made to give Mr.. Gary an answer
\ to his plan. It is In such an indefinite
state. however. that nothing beyond
! the appointment of a committee to
confer with MI. Gary and investigate
/ further into the proposed plan can
Primarily the meeting was called to
4 consider the formation of the holding
corporation to take over the Devln
! properties The representatives of the
| creditors did not seem to welcome the
plan proposed by the creditors execu-
I tive committee of which W. H. HORNE
of Chicago is chairman, in a very en-
thusiastic manner. Though refusing
to act finally on the matter this morn
ing and adjourned to take it up this
afternoon, there is little hope that the
holding company will meet sufficient
| approval to make it carry.
Judge HORNE in making his report
! did not speak in a very optimistic man
ner of the reception which had been
accorded the plan. The plan has been
treated at length, printed. details having
been sent to the interested creditors.
II desire to report" said Judge
HORNE, that after considerable effort
we submitted the plan in a printed
form to the various creditors We did
not receive sufficient replies, however,
to put it into effect About thfrty-nine
about 100000 in claims. We, how
ever, decided that it would take so per
cent of the total claims in order to
make it effective. We We're very much
shown in the effort made by the COM
mittee.'
Formal action on the report of credi-
tors executive committee as to the hold
ing company VIII be taken later by the
creditors. There is no expectation how
ever that the plan will be sufficiently
endorsed to be accepted. A discharge
of the committee was asked for this
morning but it was deferred until a de-
cision is arrived at with reference to the
holding company.
The trustees. have asked for fnstruc-
tons as to the disposal of the property
In their hands. If the holding company
falls through this afternoon they want
creditors as to whether they should dis
pose Of the property in haste and at re-
duced values or whether they should
take their time and endeavor to get the
best values obtainable
Walter Reeves of Illinois one of the
trustees, explained the situation of the
trustees. He said: "The trustees are
not willing that these affairs should
drag beyond such a reasonable time as
the creditors may indicate We have
known for some time that there was z
plan being evolved for taking over the
properties. In the event that this does
not take place two courses present them.
selves one to rush the sale of the prop-
erty even If in so doing you must sacri-
flee some of the values and the othei
is to take more time and secure bette
values. We would like to have YOU le
us know what your wish is Whethel
we shall rush the sale of the propertie:
or whether we shall daily with it ant
get better values.
THE properties are paying for them
selves. The only one which has not me
running expenses is the Toluca. Mar
: quette and Northern railway. and tina
is due to the fact OF the coal strike. TIL,
'Deviin mines are worth I consider ev
cry cent of $1.50e.000 They are yer!
, valuable
A compromise is about to be effected
stated 1dr. Reeves. in the suit between
the Devlin trustees and the First Ma
tiona1 bank for the other real propert,
valued at s6oo. 900 and turned over to tn