The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1907-12-26
Supposedly Preferred Creditors
of Visible Typewriter Company
May Share With Others
THE BONDS IN QUESTION
Suit to be Instituted for the Trustee in
Bankruptcy to Have the Bonds
Declared Void BY the United
States Court in Milwaukee

Kenosha creditors Of the Visible
Typewriter company, who had &C
cepted the notes of the company in
payment for their claims and with the
understanding that these notes were
to be secured by a bond issue may
not share any better than the general
creditors of the company, when the
final settlement of the estate of the
bankrupt has been adjudicated by the
United States Court. Letters received
by the creditors of the defunct COM
pany today indicate that the security
of these claims will be contested in
court, as attorneys representing the
trustees in bankruptcy, Carroll At
wood, have claimed that all the bonds
issued and delivered are void and they
will seek to have these bonds can
celled in a suit which is to be insti-
tuted in short time. The suit is to
be brought by the trustee on behalf
Of the estate of the bankrupt and for
the benefit of the creditors of the
company. An effort is being made to
have all of the supposedly preferred
creditors agree to the suit being
brought in Milwaukee in order not to
make it necessary for the trustee to
bring suits in Chicago and other cities
where the notes and bonds have been
given as securities for claims. The
amount of the bonds alleged to have
been issued for the payment of the
claims against the company and de-
posted with the Chicago Title and
Trust company was placed at $21, 900,
but it is claimed by the attorneys that
the bond issue was 100000 and that
the total of the issue has been used
by the corporation in various ways.
holders has already been obtained to
have the matter settled IN connection
with the bankruptcy proceedings and
the Chicago Title and Trust company
has agreed to appear III Milwaukee in
the bankruptcy proceedings if this
plan is satisfa Glory to the bond holders
and the so called preferred creditors.
Most of the Kenosha creditors Of the
company have bills of long time
standing and these bills have been
repeatedly extended in order to give
the managers of the defunct company
! a chance to pay them from the re-
ceipts Of the company. It was under
stood that the notes issued we're to
have been paid several months before
the company went into bankruptcy
and the holders of some of the notes
secured Judgment in the Circuit Court
against the company. Should it be
held that the security for these notes
is void then the creditors will be
forced to share in the settlement of
the estate of the bankrupt with the
unsecured creditors. The report of
the appraisers of the plant has not as
yet been filed and it is impossible at
this time to state what percent of the
claims against the company will be
paid but it is pretty certainsthat the
amount received by the creditors will
not be much in excess of fifty percent
if it is that much. The trustee in
bankruptcy and the attorneys for the
leading creditors are making an effort
to have the matter settled up at the
earliest possible moment. In the
meantime the Earl Motor Car COM
pany will continue to operate the
plant owned by the bankrupt COM
/ panY.