The San Francisco call., 1908-08-19
Defends BOARD IN
kRAG[NS DISPUTE
Attorney w. D. Mansfield Com
bats Charge of Attempt to
Favor Creditors
H. L. Smith and Other Wit
nesses Explain Method of
Selling Bankrupt Estate

The connection of the San Francisco
board of trade with the affairs of the
bankrupt Kragens corporation was
warmly defended yesterday by Attor-
ney Walter d. Mansneid against the
statements of Attorneys Schaertzer and
Finch At Mondays hearing of the
bankruptcy proceedings before Milton
j. Green Attorney Schaertzer charged
that the San Francisco board of trade
had attempted to settle the Kragens
estate in the interest of few creditors.
Schaertzer further asserted that the
board of trade had refused to allow him
and other attorneys to examine the
books of the Kragens company.
Attorney Mansfield declared that the
statements of Attorney Schaertzer were
without foundation and that he and At
torney Finch were trying to delay mat
ters In order to get control of the
claims Of a large number of eastern
creditors
Mansfield addressed the court and
stated that he knew charges had been
made against the San Francisco board
OF trade and that a lengthy notice had
been sent to a large number of the
eastern creditors by Attorney Schaert-
ger. Mansfield said that the reason for
this was that Schaertzer and Finch
were seeking to be made attorneys for
eastern creditors so that they could
control the election of the trustee
Mansfield alluoed to the statements of
Schaertzer and Finch as being mud
throwing"
H. L. Smith of the San francisco
board Of trade was called as a witness
yesterday. He explained the connec-
ton of the board of trade with the
kragens matter by saying that many of
the principal creditors came to the
board OF trade rooms and asked the as
sistance of that body in adjusting the
kragens estate Smith stated that at
no time was there more than one mem
ber of the board of trade. on the com
mittee which had been chosen to settle
the bankrupt estate. Smith explained
that the board Of trade had allowed the
committee the use of its rooms as a
meeting place. He further testified
that notices were sent to all the credi-
tors advising them of the sale of the
kragen stock, and the committee So
licited the attendance of the heads of
the large furniture and clothing houses
at the auction sale and that there was
no favoritism or discrimination.
Z. j. Bates, another member of the
committee, testified that the bidding for
the Kragens stock was open and COM
petitive and that the selling price was
more than $4,000 higher than the next
to the highest bid.
j. P. Cleese, another committeeman,
also explained the conditions of the
sale and stated that every effort was
made to secure as high a price for the
stock as was possible He corroborated
the statements of Smith.
F. o. Lindholm of the Linholm furni-
ture company, who purchased a portion
OF the stock. was asked to explain his
connection with the purchase of the
stock. Lindholm denied that he had
told Attorney Finch of any question
able transaction. He also denied any
knowledge of questionable transactions
in connection with the selling of the
bankrupt stock
Attorney Mansfield stated to the
court that he was determined that At
torneys Schaertzer and Finch should
have an opportunity of proving or de-
nying their assertions.
The testimony introduced yesterday
by the witnesses called by Attorney
Mansfield showed that the principal
creditors of Kragens were anxious to
vote for H l.. Smith as trustee and
were desirous of his election.
The hearing will be continued this
morning at 1920 o'clock