Weekly journal-miner., 1909-09-08
NEW TANGLE IN THE
 SHELTER LITIGATION
Lien Holders Suspect Some One Is Attempting a Rake-Off On Their Claims.
CFrom Sundays Daily)

| aHucIsOh, dllOIucy TUT Iue NOusOIt
 dated Arizona Smelling company, a
 temporary writ of injunction was is- sued yesterday by Court Commissioner J.. M. W. Moore restraining Sheriff
 Smith from selling the property of the smelting company, the petitioners filing a bond of $500.
 This proceeding is likely to open up some litigation that may lead to sensational disclosures, as Attorney E. S. Clark, who represents the Bank of Arizona and the St. Louis, Rocky Mountain & Pacific company, estl- mates that there is an Ethiopian in the woodpile.
 Upon December 21, 1908, the Bank of Arizona, Cecil G. Fennell, and a number of lien holders obtained a judgment and decree of foreclosure in the district court against the old company. This decree was granted after the bankruptcy proceedings and the trustee s sale of the property the month previous to Edwin s. Hooley and Thomas Aehenbaeh, who subse- quently turned over their interests 10 the new Consolidated Arizona Smelt- ing company, a Maine corporation. They paid to Trustee J. Kearry Rice the sum of S2OO,OOO in cash, says At torney LeROy Anderson, but the ore claims, the labor and other claims have not yet been paid, although the order of the court was that these liens should be satisfied out of that fund
 As a last resort they reluctantly placed writ of execution in the Lsnds of the sheriff on August r, and that official advertised the same at sheriff's sale to be sold Septem- Der 9.
 Attorney Anderson for the new com pany yesterday secured a restrain ing order, it being his contention that the sheriff cannot lawfully make the sale owing to the fact that the bank ruptcy court in New Jersey sold the property to HOoley and Aehen- bach free and clear of all liens and encumbrances, except a first mort gage of W. B. Jansen in the sum. of $1SO.000 and second mortgage of the Commercial Trust company in the sum of S6O.OOO Anderson also points out that the order of the court was that the proceeds of the sale should be used to pay off the lien holders, and says that the purchasers paid Trustee Rice the sum of $200.- 900. This was more than ample to satisfy all the liens and he cannot understand why they have not been satisfied. He declares that his clients are anxious that all these claims should be paid in full, and that the power to do so now rests entirely with the trustee who holds the sack.
 On the other hand Attorney Clark is somewhat skeptical in the matter and asks why "sOmeOne' is attemp,- ing to trim the lien holders 20 per cent on their claims, when there IS money in the hands of the trustee to satisfy them in full. He made some pointed inquiries yesterday when interviewed and said:
 "When the Arizona Smelling com pany and the Consolidated Arizona Smelling company were adjudieated bankrupts, the former company owed to various local parties and concerns about sl2O,OOO for ore, labor, ma terials, etc, including a mortgage of about $6O,OOO to the Commercial Trust company. All these liens were de- clared to be valid and subsisting en- eumbrances upon the property of the Arizona Smelling company at Hum bOldt, on December 24, 1908, by a decree of Judge Sloan.
 "The trustee in bankruptcy was party to the proceedings to fOreelose these liens. The judgment directed that the property of the smelting company be sold to satisfy these liens, and that the sale by made by tke sheriff of Yavapai county. The trus- tee has attempted to appeal to the supreme court from this judgment, but has filed no supersedeas bond, so that there is nothing in the appeal to prevent the sheriff from selling.
 "An order of sale pursuant to the judgment was issued out of the dis trict court here recently, and under that order the sheriff is advertising | the property for sale on Sept. 9. It IS to restrain this sale that the in