Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-01-20
ASK SOUTHARD TO EXPLAIN
Manager of Bankrupt Implement Firm UI
Before Referee in Bankruptcy,
CREDITORS WANT TO KNOW ABOUT ASSETS
Book Accounts Held by First National
Bank wanted by other Creditors
and n Triangular Fight

The meeting of creditors of the Union
Transfer company at the Office Of w s.
Mayne, referee i'm bankruptcy, yesterday.
was not altogether what might be termed
a love feast when w. A. Southland, pres
ident. treasurer and general manager of
the bankrupt concern left his seat after
an examination lasting several hours. II
is safe to say he had no reason to imagine
that he had been a guest at pink tea
or some other social function. Legal
representatives of the creditor firms
wanted to find out from Mr.. Southland how
II happened that there was such a largo
discrepancy between the assets and the
liabilities of his firm and in their endeavor
to arrive at this information put Mr..
Southland through anything but a pleasant
examination.
In the first place the creditors were not
unanimous i'm their choice of trustee.
Some favored Frank F. Everest. who was
appointed receiver for the bankrupt firm,
while Robert f. Smith manager of David
Bradley & Co. was the choice of the others.
The faction, however. favoring MT Everest
won out and he was appointed trustee.
At the start of the meeting it was evil
dent there was going to he a sort OF a
thrce-cornered fight between the First
secured by collateral in the shape of book
accounts, the, kansas City crowd" and
the creditors represented by F1ickiugcr
Brothers of this city. the latter having
claims aggregating. it is said, about $4,000
After Book Accounts.
Creditors whose claims are not secured
are endeavorng to have the collateral
given to the First National bank turned
into the general assets of the bankrupt
company. vigorous protest was also
filed against the claim of the New Decatur
Buggy company of Middletcwn, o. The
Union, Transfer company gave notes ag-
gregating $751; 600 to this company. but Mr..
Southland disputed the liability of his COM
pany on them excepting about $4,000. He
asserts that many Of the notes were re-
nowals, the proceeds of which he was to
receive TO take up the previous ones. but
that the New Decatur company failed to
send him the money and kept the notes,
about $4,000 of which passed into the hands
of banks and other innocent purchasers"
The liabilities of the bankrupt company
aggregate 100000 including the note.
given to the New Decatur Buggy company
and without such notes as discaimed by
Mr. Southland, about $l5O,C0O The assets
of the company consist of $4,000 insurance
and possibly $4,000 OF book accounts.
large part of which were assigned to the
First National bank of this city as col
lateral for loan of $4,000
Mr.. Southland while under examination,
in explanation of the large discrepancy
between the assets and liabilities. stated
that his firm had met with heavy losses in
Kansas and Oklahoma. He also states as
security for the notes he had given the
New Decatur Buggy company, he had been
presented with stock to the amount Of
$4,000 in that corporation.
Some of the creditors claim to have dis
covered that Mr.. Southland had paid claims
aggregating about 5000 since the fire which
destroyed the companys warehouse and
stock and rrecipitated the bankruptcy pro-
ceedings. y will try to have this money
recovered into the general assets of the
company. During the crOss-examination Of
Mr. Southland it was brought out that the
company had been insolvent for some time
The hearing was postponed until next
Saturday,