The San Francisco call., 1908-07-29
BOARD OF TRADE
ON KRAGENS SALE
Statement Denies Promise to
Release Hines or Any One
Else From Claims
Matter Was Handled by Credit
Ors' Committee Representing
Claims Exceeding $l25,OO0
The San Francisco board of trade

The San Francisco board of trade
has issued the following statement
After Kragens made an assignment
for the benefit of creditors to c. r.
Havens of Murphy, Grant & Co. the
matter was handled through the agency
of the board of trade by a creditors
committee consisting of /. F. Moulton
and Attorney ]. NJ. Allen, representing
the Bank of California; W. F. Bogart,
representing the Examiner; E. j. Bates
of Hulse- Bradford company; A. Rud-
gear of A. Merle & Co., J. p. Cleese of
J. z. Cleese company, c. R. Havens of
Murphy, Grant & Co, and Attorney ].
NJ. Rothchild as the legal representative
Of a number of eastern creditors.
This committee represented claims
exceeding S125, 900, or nearly quar-
ter of the entire Indebtedness.
In due time the assignee, Mr. Havens,
under the direction of the creditors
committee, advertised the property for
sale. Notices of the intended sale were
sent to Los Angeles, Portland, Seat
tie, Salt Lake City as we'll as to east
ern points. A special effort was made
10 induce the furniture dealers or
houses of San Francisco to bid for the
furniture stock. Neither the creditors
committee, the assignee nor the board
of trade had any agreement or arrange
ment Of any kind with the debtor. or
or with Mr.. Hines or Mr.. Wright, that
any favoritism or preference would be
given TO Mr.. Wright, or to any one else,
final disposal Of the property.
SEALED BIDS SOLICITED
The sale was conducted in the same
manner as similar sales in the bank
ruptcy court; that is, sealed bids were
solicited for the property, and upon
the opening of the same all bidders
We're given a chance and opportunity
of increasing their offers and outbid-
ding their competitors. AS there was
no bidder within $4,000 of the pro-
was awarded to him, as it was the duty
and obligation of the assignee and the
creditors committee to do.
The rest of the bidders were salts
fed and have never even intimated that
the sale was not properly and fairly
conducted and legally made.
No promise was made or given to
Kragens or Hines which would release
or discharge creditors claims in any
way. On the contrary the proceeds of
the sale were to be simply applied and
apportioned upon the various creditors
accounts, leaving the debtor still liable
for the balances.
Persistent Misrepresentation of the
facts have made it necessary to issue
the foregoing statement.
AS indicated above, the matter was
handled by a committee of the principal
creditors and not by the board of trade
through its directors or as an associa-
ton.
1t is inconceivabIe that the members
of the creditors committee, who are
gentlemen of the highest standing and
integrity, would play a dishonorable
part in the supervision and liquidation
of the baukrupt's affairs, or, above all,
would deliberately set to work Gas
some interested but prejudiced people
absurdly seek to charge) to cheat and
defraud themselves and all the other
creditors.
RESOLUTION ADOPTED
AS illustrative of the feeling of the
creditors committee 1t is appropriate
to say that after the property had
been awarded to Mr.. Wright the fol-
lowing resolution was adopted, to wit:
BE it resolved, that subject to the
approval of the creditors the sum of
$1,000 be set apart from the purchase
price to be expended under the direc-
tion of the committee for the purpose
of fully Investigating the causes Of
the failure of kragens, to the end that
any money wrongfully used or with
held or any property fraudulently dis
posed of by any one connected with
said Kragens may be recovered and the
guilty party or parties prosecuted
criminally.'
As nearly all of the creditors had
filed their claims with the board OF
trade under the assignment to Mr..
HavenS for the benefit of creditors, 1t
became necessary after the bank
ruptcy proceedings had been instituted
for the board of trade to take steps to
have the claims SO filed with it duly
proved and presented in the bankruptcy
yesterdays publication were issued for
the purpose just stated, and in order
that such creditors might participate
in all dividends declared