Norwich bulletin., 1911-02-08
WESTERLY FIRM BANKRUPT
Creditors Agareved in Case of Maxson and Companys Transfer of Assets-Liquor Case Continued-Death of Capt. John F. Murphpy Granite Manufacturers Association Elects Officers.

Upon petition of some of tho cred itors, !. Irving Maxson and C. Edwin Cove, late partners in the firm Of Max son < Co, have been cited to appear dn the United States district court in Providence next Saturday to show cause why they should not be adjudg- cd bankrupts. the petitioners alleging c transfer of assets with intent to hinder creditors. The petitioning cred- lfors are Ross X Mclean, Morgan & Humiston of New Haven, and Wads- worth, Rowland & Co. of Boston. The ulaxson company has been in the building. contracting and wood man. ufaeturing and lumber business for over so years. with plant in Pawcatuck. Messrs- Maxson and Cove are residents 0f Westerly.
 There was disagreement between the partners. and the business was closed about two months ago, it being under stood that Mir. Cove had withdrawn, leaving Mir. Maxson, who has equity in the real estate, to settle with the cred ftorS. This Mir. Maxson has been en- deavoring to do. He received several bids for the blaming and manufactur- ing property and sold the land and buildings last Saturday to Isaac Sher- man, Louis \. Joslin and Frederick Lena, up to that time in the employ of R. A. Shermans Sons Go. The trio named were not creditors of Max son & Co, and paid a fair present con- E1deration for the property, and were 1he highest bidders. Therefore 1t is not probable that the bankruptcy pro- 0eedinzs will affect that sale nor the optional leases held by Messrs. Sher- man. Joslin and Lena.
 A Under the laws of the state of Con- uecticut, the inventoried stock, that is fthe stock i'm trade, which in this in- stance is in the main some lumber and inanufactured stock, cannot be sold unless public notice is given ten days before the safe is to be effected, but has nothing to do with the sale of real estate and holdings. This notice was. given, and it is presumed doubtins creditors became alarmed and the Bankruptcy proceedings resulted. Un- der the bankruptcy laws it would tRve been iliegnl to transfer the property direct or Indirect to any creditor for a period of four months prior to bank ruptcy proceedings as that would mean the selection of preferred cred ftors: but it is legal to transfer to other than creditors, provided a fair present consideration was paid for the property, which has been done in this particular case.
 Messrs- Agard and McKenna are counsel for creditors, and Judge John w. Sweeney for J. Irving NIaxson.
 Before Judge Nathan 3. Lewis in the Second district court. came John McArdle. charged with maintaining a liquor nuisance in a house near Peace dale, raided by John c. Cross, attorney and constsbies. of South Kingston. Frederick c. Olney, counsel for McAr- die, objected to the legality of the search warrant. claiming the docu- ment to be defective, but the warrant was allowed by the court. McArdIe pleaded not guilty and on motion of Mir. Cross the baIl was increased from $500 to s1.O0e.
 
 C. at the request of Mir. Olney, who claimed q continuance for at least four weeks Mr. Cross objected, but with out avail Bail was furnished by Councilman Thomas A. L. Greene of Narragsnsett. Mir. Cross made his re- turn 10 the court of the liquors seiz- cd