The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1909-08-09
TO BANKRUPT LUMBER co
Minority Stockholders After Deerfied
Valley Concern

Brattleboro, Aug. Modification
was received in Brattleboro yesterday
of a petition to have the Deerfield
Lumber company of Wilmington de-
clared bankrupt, which was filed with
the United States District court In
Montpelier Wednesday. Judge Mar
tin set a hearing on the petition for
August "a at the opening of the Wind
sor term, but the hearing will in all
probability be held in Brattleboro
some time the following week.
The petition is brought by num-
Der of the smaller creditors, who
claims to have been deprived of their
chances of recovery on the accounts
due them by the act of the Deerfeld
| Lumber company in entering into
agreement with the Connecticut Riv-
er Lumber company and the Somerset
Land company and transferring all of
their realestate, personal property
and stock by mortgage so that the pc
titioning creditors are unable to col
lect their accounts through the pro
cess of law. The petitioners are Ev-
erett H. Baker of Wilmington the e.
Mansfield company of Bangor, Me-,
the Albany Felt company of Albany,
n. Y, the Archibald Wheel company
of Lawrence, Mass. and the Main
Betting company Of Boston.
% The petition AYERS that the Deer
field Lumber company has for the
greater portion of six months proceed
ing the filing of the petition, had its
place of business In the town of VII
mingion: that the company owes
debts amounting to $4,000 or more and
that the petitioners are creditors of
the company, having claims amount
ing i'm the aggregate in excess of the
accounts held by them. The claim of
Mr.. Baker is on two promisory notes,
and the claims of the others are for
goods and merchandise sold and deliv-
cred to the company by them
The petition also ayers that the
! Deerfield Lumber company is insol-
vent and that within four months it
committed an act of bankruptcy By
giving a chattel mortgage deed to the
| Connecticut River Lumber company
and the Somerset Land company Nov
ember 26. 1908, on all of the hard and
soft wood logs then Oh tne premises
of the insolvent company and all hard
and soft wood logs cut and delivered
on the mill pond and on all their other
property in the town of Wilmington.
! The petitioners allege that this mort
gage was gwen to secure the grantees
for all Indebtedness then existing UNI
| der certain contracts and for all in
debtedness the Deerfield Lumber com
pany might owe them on a final ac-
counting in sums not to exceed in the
aggregate $250,000. The petitioners
claim that this mortgage was given
with the intent to hinder delay for the
holders Of the mortgage preference
ever other creditors of the Deerfield
Lumber company. and that they had
no knowledge of the proceedings un-
til some time afterwards. Other acts
also are cited in tne petition. showing
acts of bankruptcy and the allegation
is made that the mortgages to the
outside parties were made with the
idea that they were to furnish capital
from time to time to carry on the
business of the Deerfield Lumber COM
pany and that these sums were Who'll
ly insufficient for the work. II. F..
and F. f. Barber, wac are the attor-
neys for the petitioners, also repres-
ent other creditors whose names do
not appear on the list.