The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1907-05-17
Floating Debt of Fifteen
Thousand Dollars.
ASSETS PLACED AT $4,000
BOndhOlders Get Together and Discuss
WAYS and Means Whereby They
Can Protect Themselves.
From Wednesdays Daily.

FROM wednesday ) IdllS'
AS stated by The free Press yester
, day, Deputy United States Marshal L
j. Sheehan of ST. Paul late in the after
noon served papers in involuntary bank
ruptcy proceedings upon Mayer Bros.
Incorporated. The plant is i'll the hands
of Trustee II. F. Leonard, and was moi
closed down. The return day under the
proceedings is May ~
w. F. Harln is the only MankatC
creditor among the thirteen petitionlne
ones, his claim being stated to be
check for so, given by Mayer Bros
Inc, Sept 6 last, and upon which the
bank refused payment. F. H. Barnes OF
Vernon Center is another one OF the pc
titioners, his claim being stated to be
promissory note for $ll3.4O. The Other
petitioners are outside companies, but
none of the claims are large.
The petition alleges that on Oct. 70
last, L. Salet secured Judgment against
the corporation for $70l.30, and that he
levied upon twenty-three unfinished trip
hammers, valued at 500, and that these
were to have been sold today to salts
fy the Judgment. 1t is also alleged that
on May 4 the corporation transferred its
property to Henry +. Leonard as trustee
for the bondholders, with intent to hin
der. delay and defraud its creditors
thereby committing another act of bank
ruptey, by preferring the creditors whom
Mr.. Leonard represents.
The bondholders held meeting last
night and talked the situation over. The
result of the inventory, which has just
been completed, was reported, which was
that the assets inventoried $4,000, not
counting anything for the reputation OF
good win The bonds outstanding amount
to $4,000, and there is a floating in
debtedness of $4,000
A committee was appointed, consist
ing of John Kuntze, A. G. Bierbauer
DIR. j. A. Hielscher, Leo S. Lamm and
John Trenheiser, to see what had best
be done to protect the bondhOlders. This
committee will meet tonight with the
Mayer. brothers and report at another
meeting of the bondholders to be held
later.
If the plant was to be sold at forced
sale, it is thought that not enough could
be realized to pay the bondholders back
not to mention the other creditors, that
are not preferred. This being the case
the bondholders may find it to Their
interest to invest little more and car
nv on the business, freed from the in
cubus of the floating debt.
The company is employing forty men
at present, and the monthly pay roll is
SO. 900 or more. 1t would be misfor-
tune if anything was to happen to close
down the plant and throw these men out
of employment.
Even if the business was to be closed
ont. MIR. Mayer would still hold his pat
ent. on the trip hammer, which is vaiu'
able asset and he could doubtless get
sufficient backing to start up again, but
whether he would care to do this is a
question. He has an offer from a Min
neapolis concern of $1,000 a year to &C
there and take charge of a plant. he
has spent fifteen years in Mankato build
ing up large business, but has real
lied nothing from his efforts.