Sequachee Valley news. (Sequachee [Sequatchie], Tenn.) 1896-1952, 1908-01-16
PETITION TO
DISINTECRATE
Expected Action Taken In
Southern Steel Case.
RESTORATION OF PROPERTIES
TO ORIGINAL OWNERS
Chattanooga Iron and Coal
Proceeds in Like Manneras
Did Lacey-Buek Iron
Company in Alabama.

COMPANY III AldOdlIld'
Arrangements have been made to
prevent the sale of the assets of the
Southern Steel company at public auc-
ton by the return of separate proper
ties to the former owners, the receiv-
ers and trustees to still retain possession
of the manufactured irons and mate
rials until final settlement has been
made with the creditors. To that end
a petition was filed Friday in the fed
eral court at Birmingham by Attor-
neys Chambliss q Chambliss, of Chat
tanooga, and A. E. Goodhue, of Gads-
den, for the return of the properties in
the state of Alabama to the possession
of the Lacey Buck Iron company, the
American Trust & Savings bank. of
Chicago, trustees for about $40, 900, 600
worth of collateral notes guaranteed
by the stock of the company, and W..
f. Showers, of Gadsden. Judge
Hundey set Jan 20 as the date of the
hearing.
Following the action in the Birming-
ham courts, petition was filed in the
local federal court yesterday morning
in which the Trust Company of Amer
ica of New York, trustee. under mort
gage to secure an original issue of
$6OO 900 of bonds and the Chattanooga
Iron & Coal company pray for the pos
session of the properties of the local
company. The petition was signed by
Attorney J. G. Boston, of New York,
and Chambliss & Chambliss, of this
city, representing the petitioners.
The bondholders and the trustees OF
collateral notes for the Georgia Coal &
Iron company in Georgia are attempt
ing to wind up the affairs of that COM
pany by foreclosure proceedings now
pending in the state courts. Had the
affairs of the Georgia branch of the
Southern Steel company been taken t.
the federal court originally by thu
creditors, similar proceedings to thos'
iHSUlbuI6u III OudIGduoOSo anu uo Diihi
ingham would have been employed
thus disintegrating the Southern Stee
company, and returning all of th'
properties to the original companies.
The petition. which is similar il
many ways to that filed by the Lacey
Buck company, in Birmingham, re
views the bankruptcy proceeding
against the Southern Steel company il
Chattanooga in which w. M. Nixol
was appointed temporary receiver, ant
shows that operations at the local plan
have been suspended. In the petition
it is also stated that the Chattanoog
Iron & Coal Co. owns large furnace
and coal mine properties in Chattanoo
ga and Dunlap, Tenn, as well as or
mines and other properties in Georgia
and that these properties are unde
mortgage to secure an original issue c
5000, 600 of bonds, the Trust Compan
of America being trustee under tn
bonds. The petition further recite
that these bonds are in default, both q
to the sinking fund and interest, an
that other defaults have taken place.
1t is alleged that the company own
very valuable properties and that 1T
entirely solvent and that it's officers al
able to take charge of it and finance
and prevent its properties from bein
lost or dissipated by forfeitures
leaseholds The prayer of the pet
tion is that the court turn over til
possession of all this property of I'll
Chattanooga Coal & Iron company
its officers, in order that they may tai
charge of it and preserve and prote'
it from threatened losses.
1t is claimed that the only intere
which the Southern Steel company
its receivers now acting for it, hay
in the Chattanooga Iron q Coal con
pany, grows ont of the purchase by I'll
Southern Steel company in the SUNNI
of 1906 of all of the capital stock of Il
Chattanooga Iron d Coal company, e,
cept few shares. After making Il
purchase of the capital stock it appea
that the Southern Steel company too
charge and operated the plant al
properties of the Chattanooga compaI
and matters were in this cOnditiC
when Receiver Nixon took charge.
j. claimed that about a year ago q
Southern Steel company, issued lar
block of notes, aggregating abo
5000, 600, and pledged the capital sto,
of the Chattanooga Iron d Coal col
pany with the Trust company
America as trustee to secure the note
Default is said TO have taken place
the notes, and the petition shows th
these notes have passed into the han
of various parties who have advanc
money on them. TheSe parties, ii
claimed are the ones who are now l
ally interested in the stock and the
tertst of the Southern Steel comTaI
i If an uncertain value. especially
the assets were sold mt a Tuhlic an
tion.
Tho petition shows that the holdS
uf the notes and the rarties who hC
=, ieiged stOck -~. 5rmTn '''- ~