The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-06-27
Devlin Reorganization Plan Re-
ceiYesg a Blow.
Judge Horine's Connection With
DeYlin Investigated.
SOME NOTES ARE FOUND
Claimed That He Owes Estate
Large Sums.
Is Chairman of the Creditors
Executive Committee.

An apparent attempt to take ad-
vantage of his former connection with
the Devlin estate by fling claims
amounting to $4,000, which he re-
fuses to swear to. will go far towards
wrecking the creditors scheme of re-
organization made by w. H. HORNE,
Of Chicago.
Recent disclosures Of advances
made by the late c. J.. Devlin to
HORNE which have come to light in
connection with the two new COM
panies whose existence has never been
made public until hearing held be-
fore Referee N. H. LOOMS yesterday
afternoon, will go far towards placing
HORNE in an embarrassing position.
As head, chairman in fact, Of the
creditors executive committee, HORNE
has been taking a prominent part in
plans leading to a scheme of taking
the mana cement of the estate away
from the trustees and turning 1t over
to company composed of leading
creditors. HORNE succeeded in estab-
fishing himself solidly with a number
OF the creditors and was quite in the
ascendancy. But this disclosure be-
fore Referee LOOMS shakes the faith
that has been entertained of HORNE.
The evidence connecting HORNE
with these two companies and the fact
of their existence was only made
known to the trustees of the Devlin
estate by securing on demand from
Mrs. Devlin certain valuable stocks
and bonds and a letter book which re-
vealed Horine's transactions. The
fact that certain papers were in the
possession of Mrs. Devlin was dis
covered by the trustees and through
their attorney, J. S. Dean, Mrs. Devlin
was called upon to turn them over.
I WI
these papers was found a note signed
by HORNE and given to Devlin. The
note is for $7,737. Mr. HORNE was
asked to explain why he had never
made public that the note was given
by him, and in reply he stated that
he had forgotten all about it. With
accumulated interest on this note,
given in 1902. it now represents
claim of about $4,000 against Horne
The claims which HORNE presents
against the estate are based on seven
notes of $4,000 each-$ 20, 900 against
the Devlin-hiller Coal company, and
$4,000 against the Southwestern
/ Coal company It is claimed that the
in Chicago to protect loan of $685.
COO The fact that HORNE does not
swear to the claims throws them in
an unfavorable light.
HORNE still retains his Office as
chairman of the creditors executive
committee, and was given further time
on June 3 to report on the scheme OF
organizing a holding company and
also to report on the plan OF taking
over the coal properties made by
Elmer H. Adams. of Chicago, is
Horine's attorney and was present at
the hearing before Referee LOOMS
! yesterday afternoon. Adams also TOOK
occasion to file claim against the
! Devlin estate for 500. This he said
was due him because he had attend
/ ed the creditors meetings and also
was instrumental In conserving the
+ Illinois coal properties for the credit
I ors He considered his services worth
$50 a day. Referee LOOMS has taken
the claim under consideration.
The examination of Judge ". II.
HORNE as to his knowledge of matters
| connected with the estate Of Chas. j.
Deylin. bankrupt, which took place be-
fore Special Referee N H. Looms yes
terday disclosed the fact that there
were two corporations doing business
in Chicago which were practically own
ed bv Chas. J. Devlin but which were
not shown among the assets as listed
| by the trustees. They were the 1lrIn
/ of w H HORNE & Co. (ncorporated)
| and the Belt Line Coal company.
The first named corporation was the
medium through which Mr.. Devhn
foated the notes and securities OF MS
various companies. It purported to be
an independent brokerage concern DuI
as a matter Of fact it was owned and
operated by Mr.. Devlin and under the
cover of the same he succeeded in I'M
| loading q large amount of the notes
and securities Of his various companies
on the country banks Of Illinois. !ndi-
ana and Iowa. The apital stock OF the
company was $4,000, which was paid
as follows
By Charles J. Devlin. on his own
| account, cash -...---.--.-..-.-.-. .$lO,OV0.0O
BY w. H. HORNE, out of proceeds
Of his note to the Central Ma
tionaI bank of Topeka which
note was endorsed by Chas- J.
| OeViln osvVO'Vu
lBv w H TIorine, by his note to
Chas. J. Devlin, which note is
| wholly unpaid and now in the
hands of the trustees. ....-.....--- 7737. 90
BY w H HORNE, by his note to
the company, which note is
wholly unpaid --.----.-.....--..--- s65.o0
i By Stella. Anna and Chas. HORNE,
i by their notes to the company Of
S100 each, which said notes are
wholly unpaid .....-s--.. 10000
IOIal go VVv-VJ
This corporation was wholly managed
T--- II =