Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1908-12-16

whereby the Atkinson estate, in con-
sideration of such release, forfeited or
released all interest in the land COM
pany and in its assets and holdings, so
that the remaining members of the land
company were Barnard, Gould, Town
drow and Nutter.
In the month of February, 1905, the
Moline Land company closed a deal
with Cobe & McKinnon, Chicago
firm, for the purchase Of a paper mill
at Rock Falls, ILL.,, conducted by the
Illinois Straw Products company, a
corporation, all of the capital stock of
which was owned by the said Cobe &
McKinnon. All the assets and proper
tiles then held by the land company
were turned over to CODE & McKin-
non, and in addition cash payment
|of $4,000 was made by the land COM
pany for the stock of the Illinois Prod
ucts company, which was then turned
over to the members of the Moline
Land company, with the exception of
264 shares which were issued to one
d. l.. Morrill,, an attorney in Chicago,
for legal services rendered in connec-
ton with the deal between the Moline
Land company and the Illinois Straw
Products company.
Of this sum of $4,000 paid in cash,
$4,000 was furnished by Gould, trus-
tee of the Keyes estate, and from the
funds of said estate, and when the
Moline Land company took over the
| Illinois Straw Products company and
merged into the latter, it was under
stood by all the members of both COM
panies that the latter company assume
all the liabilities of the former The
land company, after this, ceased to OPP
crate, but continued in existence mere
| ly to look after some obligations or
notes which had been signed by its
members, and were still owing, and
these were paid or renewed as they
matured, from time to time. -.
Borrowed from Estate.
| From this time on all the moneys
necessary to operate the Straw Prod
ucts company plant were borrowed
from the Reyes estate, and the funds
of this, estate were used in carrying
on the business of this company in
which Mr.. Gould was personally inter
Tested. This went on until the month
of May when the Indebtedness of the
Straw Products company to the Keye:
estate had reached the sum of $4,000
Not long after the deal between the
Moline Land company and the Illinoi:
Straw Products company had beer
consummated. Gould and Barnard turn
ed over to Towndrow their stock il
the Illinois Products company, eacl
retaining only 60 shares of the same
land agreeing, by endorsement on tn
Irrespective certificates, that upon thu
payment of them. respectively, of thei
face value, $4,000, they would surren
lder these certificates to the Stray
Products company.
The Indebtedness of the Straw Prod
ucts company to the Reyes estate wa
secured by the bonds of the Stray
Products company, which, in the mean
thine, had been. issued. These bond
| were sold and the proceeds turned owe
to the Reyes estate, and in this mar
!ner this Indebtedness was paid of
After that new loans were made fror
time to time to the Illinois Straw Proc
Iucts company from the funds of tn
Reyes estate, which were again pait
so that the report which Mr.. Goult
as trustee of the Keyes estate, made t
the court in 1906, showed no indebted
ness from the Straw Products compan
to the Keyes estate.
Notes without Security.
From that time on the loans of tn
Reyes funds to the Straw Product
company Ton personal notes withor
security, or rather the dissipation {
the funds, became more rapid, unit
the spring of 1907, when these loan
aggregated in the neighborhood {
CONTINUED on Page Eighty