The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-03-19

BILE dates back to about the first of
November. 1904. At that time we had
our mill just ready to install our ma
chinery. We had run out of capital
and in order to go ahead with our
improvements we gave T. B. Sweet, as
worth of second mortgage bonds
These bonds were put up with the
Bank of Topeka as collateral to secure
advances that the bank was making to
us to pay for material and machinery
which went into the new mill. Out of
this amount we had used about $49,-
900. Then dispute arose as to
whether these bonds belonged to the
corporation or to the Bank of Topeka
Soon after that 1 was taken sick and
spent seven or eight weeks in the hos
pital. During that time a young man
by the name of French whose father
erty was secretary, of our company AS
soon as 1 was able to go to the mill
from the hospital 1 Immediately dis
charged him from our service His
father had agreed to stand by me and
after a conference with the senior
French we decided to bring the suit in
the state court. This would force a
show down as to who was the owner
of the balance of these bonds. No
sooner had we started the suit in the
state court than w. S. McClintock and
A F. sherman, two attorneys, saw an
opportunity to get fat fee out of the
estate by forcing it into the federal
court All of the creditors were in
formed of the action that we We're TAX
ing in the state court and have let
ters now from over 80 per cent of
them stating that they were with me
and would be perfectly willing that 1
should go ahead and clean up our
bond proposition. but these two attor-
neys would not listen to anything.
They filed a petition in the federal
court and subpoenaed the owners of
Topeka mills. They all testified that
tn N n
property was not worth over $4,000
or 100000. With such testimony as
that against US what else could we do
but submit and thrash it out i'll the
federal court These two lawyers
took advantage of us by using the
testimony of millers who were preJu-
diced against us on account Of the
flour trust war that we had just been
through.
81 immedia tely went to work to get
a new organization perfected and
made a proposition to every creditor. |
This was accepted by all of the credi- |
tors excepting those represented by
McClintock and Sherman. These two |
lawyers painted great pictures of pro- |
fit if the mill could be operated by |
receiver and that if the receiver could !
have full swing for at least a year he
could pay off most of the unsecured |
debts. but the facts of the matter are
now that the mill has been in the |
hands of the federal court receiver for |
sixty weeks. During that time the mill |
has run about fifty days and aside |
from the wear and tear of the ma
chinery and the natural depreciation |
of the property the receivership has |
incurred a loss of probably $4,000.
THAT is too valuable a property"
continued Mr.. Taylor, Ito be operated |
in that manner. Mr.. Sterne is a good |
careful business man sand I doubt if
there is any man in the country that |
could have done better under the
same circumstances. He was not
practical miller when he went in
dent of the plant he has had no one
connected with him who has any
knowledge of the business. 1 have
sold few cars of flour myself. mostly |
all mail order business but a plant of
that value should have been run all
the time. The fixed charges upon the
plant are over $500 per month. 1t is
one of the best milling plants there is
more improvements upon it the pro-
perty could not be duplicated for
100000, notwithstanding the testi-
mony of the three Topeka millers to
the contrary. I planned it, built it and
personally inspected every piece of
machinery, and was consulted by the
experts in the various lines whom I
had hired to build the property and
install the machinery and L know just
exactly what the property is"
The matter of the jurisdiction of
courts will be fought out through the
United States circuit court of appeals
and probably to the supreme court of
the United States. The order of
Judge Slonecker will not in any way
affect this unless the higher court
should reverse Judge Pollock. In any
event the property can be sold and the
money paid into the court. then il
can be distributed among the credi-
tors according to their priority. The
item of bonds held by the Bank of
Topeka to which Mr.. Taylor refers
was allowed at $4,000. Mr.. Taylor
under oath claimed that the concern
was perfectly solvent and that the
property was worth at least $4,000
more than the liabilities of the cor
poration but when the property is dis
posed of it will probably not bring
any more than the amount of the IL
abilities. although the property was
appraised at $4,000 or about S25,-
900 more than the debts. Mr. Taylor
says he doesn't expect that much will
be left for him.
The Taylor Grain Co was incorpor-
ated for $15O.0OO with $4,000 paid m