Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1908-01-05
LUMBER CONCERN
INTO BANKRUPT
Board of Directors of the
Bluff City Lumber Com
pany, Pine Buff, Files Pc
tition in Federal Court
ACTION IS DELAYED
Rutherford Faction Granted Time to
Raise Money, Bnt York Faction
Files Additional ClaimS-YOrk Fac
ton Alleges FavOritism.

The board OF directors OF the Blud
City Lumber Company. one Of the
largest lumber companies in the State,
with a capitalization of $2,000,000, at
its annual meeting yesterday in the
Office of Rose Hemingway, Cantrell
& Loughborough, voted to ask that a
receiver be appointed for the company,
says Saturdays Little Rock Gazette.
Accordingly, when the meeting ad-
journed, the directors, with their at
torneys, went to the Federal District
Court and filed the application for a
receiver.
This move is one in the internal
fight which has been going on among
the stockholders of the company for
some time in which J. B. York and j.
3 Rutherford are the leaders of the
two factions.
Mr., York and Mr. Rutherford are
the two men who organized the COM
pany and both have become million
aires. A quarrel between them di-
yided the company into two factions
and has brought about trouble in the
courts. 1t was also the cause of the
Clio shooting affair, in which three
men were killed
Rutherford Granted Time.
MI Rutherford was not present at
The melting of the directors, and was
not aware that any such move was
contemplated His attorneys We're
there, however, and fought the matter
to the last. Austin e Danaher of Pine
bluff are Rutherford's attorneys.
They asked Judge Trieber that they
be granted time to confer with Mr.
Rutherford and secure money to pay
the claims of creditors. They stated
that they could raise 100000 which
would be enough to liquidate all the
claims and prevent the necessity OF
having a receiver appointed They
were given until 10 o'clock today to
secure a certified check for that
amount At 10 o'clock Judge Trieber
will again meet with the attorneys
of both sides and if the creditors are
not satisfied receiver will be APP
pointed.
Works Pile Up the Claim Total.
At the time the application was
filed, claims We're filed by thre credi-
tors for little less than $4,000 The
claims were those of the Pine Bluff
and Arkansas River Railroad for s.,
500 on an open account; c. l.. Brown
ing of Pine Bluff. $4,000, on prom
;ssory note, and w. II. Langford, also
of Pine Bluff, $3,307 on a promssory
note 1t was thought at the time that
100000 would cover the claims of the
creditors, but later in the afternoon
J. b. York and his son filed their in
lividual and joint claims, amounting
in all to little over $4,000. This
was done. no doubt, to Illustrate the
move of the Rutherford faction to pay
he claims. J. B.. York filed a claim
If $52,212 for 4 promissorY note is
sued July 81, 1907, which is due. His
son, Robert Yorks, claim amounted
@ $1S,017, and was also for a prom |
ssory note past due, and their Joint
claim amounts TO $4,000 also, for
money loaned the company. The total |
amount of the claims then amounted |
o $126,036 There may be other
claims before the case comes up At /
% o'clock
Some time ago J, b York and }. b. |
rutherford were appointed co-receiv-
RS of the company by Judge Elliott |
# Jefferson county, and it was con-
ended by the York faction that Ruth |
.rford was being shown favoritism. 1t
vas for this reason that York and his !
blowers asked that receiver be APP !
,ointed in the federal court, as that |
Will take the matter out of the Jeffer-
on county court.
Mr.. Rutherford was notified by long
distance telephone last night OF what
lad occurred, and he will be here to-
ay to attend the hearing before Judge
richer.