Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1907-06-14
SMITHS FIRM IS
IN BANKRUPTCY.
WHOLESALE GROCERY COMPANY
ALLEGED TO HAVE PAID PRE-
FERRED CREDITORS.
CREDITORS FILE PETITION.
Smith, Thorndike & Brown in Finan
cial Trouble Since Early in
the Year.

MILWAUKEE, Wis, June 1O.-An
involuntary petition in bankruptcy
was filed today against Smith, Thorndike
81 Brown, wholesale grocers who have
been in financial trouble for some time
past on account of the failure of Ira 3.
Smith, in the office of the clerk of the
United States district court. After the
usual form, this petition briefly states
facts enough to bring the affairs of the
firm to the attention of the court.
The assertion is made that the firm
owes debts in excess of $1,000, namely,
$49.11 to the DayBergwall company;
1928 to A. S. Goodrich; $1,000 to Will
liam Evans; and $500 to S. r. Jones.
The petitioners assert that the firm
committed an act of bankruptcy and at
tempted to prefer certain creditors above
others by paying two notes OF $4,000 eacn
to the National City bank OF New York
on May 8 and May 20. No answer or
the company has yet been made.
Had Hoped to Reorganize.
The committee, appointed by the cred
itors at their meeting, held on Saturday,
May 25, had expected to prepare "a
report to be sent to each creditor,
firm or individual, advising that
efforts be made to reorganize, or
in some manner take care OF the
business of the concern. This report, the
committee intended, would state it's in
ability to make any satisfactory arrange
ment for the future of the business. The
filing of the petition this morning in
bankruptcy has rendered this step I'M
necessary. The committee met, however,
at o'clock this afternoon for the pur-
pose of winding up its affairs and pre-
The committee consists of J. w. 7. Lom-
bard, chairman; Richard Wagner,
George n. Pratt, Racine; Otto L. kuehn,
and Judge r. A. Orion of Darlington.
Assets and Liabilities.
It is learned that the committee has
gone carefully over the entire affairs of
the concern, and that it was found that
the assets were something over $43O,OOO,
in stocks on hand, bills receivable, etc,
and that the liabilities were in the neigh
borhood of $5OO.OOO, with the capital
stock practically wiped out.
Several efforts were made by the re-
organization committee to have large
concerns in the city, including one we'll
established commission house on lower
Broadway, take over the business and
conduct it; but all of these efforts failed,
as we'll as efforts on the part of the
committee to interest new capital in the
business.
Margins Were Small.
although the house has for years
enjoyed large trade throughout the
state and the northwest, the margins
in the business have been small, and the
misfortunes which have overtaken the
concern mitigated against the possibil-
ity of interesting outside or new capital
in the business" explained a member of
the committee. '"There seems to be no
doubt that, with capital sufficient to tide
the concern over it's troubles, the bust
ness could again have been built up to a
paying basis, but this assistance has not
been Forthcoming, and the move in bank
ruptcy seemed the only alternative. The
committee will report to the 100 or more
creditors as individuals and firms, and
there will probably be no more meetings,
except as creditors before the referee in
bankruptcy"
Receiver Is Appointed.
The Wisconsin Trust company was ap-
pointed receiver for the company shortly
after noon,