The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-11-19

THOROUGHLY HONEST.
Believes Hurley Incapable of
Any Dishonest Action.
Hurley Has Not Voted on Matters
Affecting Santa Fe.

Today is the last day in which bids
are received by the Devlin trustees for
the sale of the property held by the
trustees in Topeka. The bids. of which
there are several, will be opened to-
morrow. The highest bidder gets the
property. Bids will be advertised for
within a few days for the disposal of
the coal lands held in Crawford
county.
Mr.. Leland today made this state
ment concerning the report that the
Santa Fe has too much influence in
Devlin affairs:
Il object to the charge made in the
State Journal article rejecting on Mr..
Hurley as trustee, because every body
that knows Mr.. Hurley knows very
well that he would not do an unfair act
or allow one to be done in any busi-
ness matter that he has any control Of
have had occasion to test him in
many matters and know the man to
be honest in every transaction. The
trustees were selected, as everybody
knows, to look after the estate and set
tie its affairs in the best possible man
ner at the same time securing the
greatest possible benefits for the cred
ltors- Everyone that knows anything
about the affairs of the estate know
that they are worse mixed up as to the
panies than the affairs of any other
estate in the west, but the trustees
have only this in view, to conserve the
interests of the estate and see that the
creditors get all that it is possible for
then 10 receive, and to do the business
in such way as to merit the approval
or the referee and the court
Il wish to state that the Santa F'e
mas. been of more benefit and assist
ance to the trustees and creditors of
the Devlin estate and the various COM
panfes for which Mr.. Hurley. Mr.
Reeves and myself are trustees, than
all other interests combined, and neith-
er Mr. Hurley nor Mr. Hurd has ever
taken any hand or offered any sugges-
tons IN matters where there was any
conflict between the railroad and the
receivers or the trustees. They have
invariably left the settlement of all
such questions to Mr.. Reeves and my
Mr. Hurley, as general manager of
the Santa Fe, has favored the trustees
and materially aided them in the oper-
alton of the coal mines During time
last year when there was no market
1of portion of the coal produced at
the mines Mr.. Hurley furnished US
with cars and allowed them to remain
loaded for days and weeks at a time
without charging US demurrage stating
that he could do this so long as there
was no demand for the cars but as
soon as there was a demand for coal
cars he would have to treat all mines
alike. and he even went so far as to
authorize the railroad company to ac-
cept mine run coal (coal just as taken
from the mines before the slack and
other small grades are removed) in or
der that there might be no accunula-
tlon of surplus slack at the mines
In regard to the sale of the bonds bv
the banks, which bonds the banks were
holding as collateral for loans made to
the various Devlin companies: These
bonds We're held by the banks about a
year before a sale was finally effected,
although the banks were very desirous
of making a sale claiming thew wished
to use the money in their business.
Does anyone suppose for a moment
that the banks would have sold these
bonds for less than they were worth
or to anyone but the highest bidder.
when they (the banks) were to be the
beneficiaries of the proceeds of the
bonds. The trustees suggested to the
banks that they see what offers they
could get for the bonds. Some of the |
banks interested prominent coal opera
tors in the bonds and some of them
even sent experts to examine the mines
covered by the bonds. This took con-
siderable time but they never received |
a bid that compared with the bids that
they finally accepted. The sale was /
agreed to by the trustees and was con- |
firmed by the court. 1 personally know
of two operators who told me that the |
bonds sold for from one-fourth to one
third more than they were actually /
worth. The sale of stocks and bonds |
also real estate. is all a matter of rec
ord with the referee and the court. As
a matter of fact, the banks might havs /
sold all their collateral without consult |
ing the trustees as they had an agree
ment with Mr.. Devlin to that effect |
when they made the loans.
In regard to the trustees favoring |
the Devlin estate as against other Dew |
lin companies. 1 have to say that the |
trustees look after the interests of the |
Devlin estate. At the same time when /
the interests of any Of the companies I
appear to conflict they try to get down /
to justice and law on the question as TO |
which company may be entitled to the |
property.
~. LELAND, JR."