The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-07-13
CALKINS PAPER IS
LOST TO CREDITORS
Contra Costa Standard, Held by
Syndicate, Will Go to Minor
ity Stock Holders
Martinez Citizens to Gain News.
paper for $500 Because of
Promoters WiIes

The Vaccinations of Willard p. Cal
kins president of the publishing syndi-
cate, whose creditors are now scram-
bling for pennies in the bankruptcy
courts, resulted yesterday in removing
from the concerns slim list of assets
one of the soundest properties they
possessed, and on which they expected
to realize a neat sum. The Contra
Costa Standard, one of the two Calkins
papers that had paid expenses, will prob
ably revert to the coterie of minority
stock holders in Martinez. the town in
which it is published, for $780, because
Calkins has so tangled the affairs of
the publication with unauthorized is
sues and sales of stock that the credi-
tors will be glad to get even that sum
for the sheet
The Martinez share holders of the
Contra Costa publishing company,
which owns the Standard, filed a petit
ton with Referee in Bankruptcy Green
yesterday asking that all the shares in
the company held by the Calkins syn
dicate be declared not to be assets of
the bankrupt, and giving as their rea-
son for the request the statement that
Calkins made illegal issuances of stock
in the newspaper contrary to the stat
utes of California They ask that all
the stock in the paper held by the
Calkins syndicate, which is majority
of the whole issue, be declared can
celed and void.
MAKES OFFER OF COMPROMISE
Attorney A. B. Mckenzie, attorney
for the Martinez businessmen, argued
the petition, stating that he realized
that the creditors would fight to retain
the shares even though they were
worsted in the end, and begin a long
and bitter legal contest. He offered to
compromise by giving the creditors
$500 on condition that the Calkins
shares in the paper be turned over to
be Cancelled. On his part, Mckenzie
would abandon his clients claim to
IS. 900 they declare the Calkins syndi-
cate owes them.
Judge Green intimated that he was
disposed to allow the Contra Costa
Standards claim to being creditor of
the Calkins syndicate for $4,000, and
at this the attorney for the creditors
stated that he was willing TO accept
the $500 and grant the Standard its
stock held by Calkins. This PROPOSE
ton win be submitted to the creditors,
and probably will be accepted
That CaiklnS SOFA treasury SbOCh "
the Contra Costa publishing company.
ordered dividends paid to himself and
capitalized the company at much
higher figure than given permission to.
while not paying a dollar for the 10000
shares his syndicate swallowed. are
some of the charges made in the Pc
tition and by witnesses placed on the
stand yesterday from Martinez.
1t developed that the Martinez men,
anxious to dispossess a political clique
in that city. termed by them objection
able. bought the Standard, then known
as the country paper, for $4,000 and
turned the bill of sale over TO Calkins,
who was to organize the corporation
and run the paper for the businessmen.
Then $4,000 in cash was turned over to
Caikins with which to operate the
paper.
CALkINs HIGH FINANCE
Calkins was to capitalize the sheet
for SIS. 900 and keep for his syndicate
SIS. 900 of shares, giving to the citizens
the equivalent in shares of the $1,000
they had put in Instead of this Calkins
incorporated at $4,000 in 10000
stock holders, who had contributed all
the cash. and sold the 1900 shares of
| treasury stock to Grass Valley people
at 81 per share. Calkins had 10000
shares for himself and thus had control
of the affairs of the corporation with
out having put in a cent.
| But as he should have contributed
something, either in money or labor,
the Martinez citizens declare the issue
void and they probably will win their
point. gain the stock and turn $500
into the assets of the syndicate. But
] the paper will pass into other hands,
and the $4,000 the creditors expected to
get for it at public sale can never be.
This morning at 10 o'clock the sale
of the minority stock of the Fresno
Herald will be held. and also the order
held by the Herald against the Calkins'
| syndicate for $4,000. The matter of
the sale of the Sacramento Union will
also be taken up.