Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-01-07
Creditors Bring Suit.

Proceedings to have the corporation de-
clared bankrupt were instituted in the
District Supreme Court by Attorney Lucas
p. Loving, representing merchandise
creditors of the corporation. The claim
is made that the corporation is insolvent.
and within the past four months com
mitted an act of bankruptcy by paying
the Westmoreland Speciality Company, a
creditor. S112.34, with intent to prefer the
company over other creditors.
The assets of the corporation. ii is
stated. consist of merchandise at 9th
and Grant place. 1t is estimated by
counsel for the petitioning creditors that
its indebtedness amounts to 5000 This
estimate does not INCLUDE the claims OF
holders of undedeemed vouchers. it is
said.
The petitioning creditors and the
amounts of their claims are: Haywood
Schultz & Bros, s99. %: Hartwig & Kem-
per, s73.4s. and George splndler. $3.50.
Cannot Meet Obligations.
Speaking of the proceedings in bank
ruptcy Attorney Frank J. Hogan, coun-
sci for that society, said today:
THE proceedings were not unexpected.
They are the result OF the prosecution
against the company on the ground that
its business violated the gift enterprise
law
After the Court OF Appeals had de-
cided that trading stamp systems violat-
ed the law in this District, and the United
States Supreme Court had refused to re-
view that decision. a large number of
merchants in the District, who had re-
ceived stamps from the Economy Com
pany, and ISSUED them to their customers,
under contracts, by which they agreed to
% N fnr rof,ISQd
| to pay their Indebtedness for such stamps
| and took the ground that the contracts
were illegal and therefore not binding ON
them.
1.-The company lost something like $1O.-
| 600 as a result of this action. Further
more, the business has been at a stand.
still.
1.-The company, without any revenue
| though under heavy expense, during the
time consumed in litigation, hence now
| finds 1t impossible to meet it's obligations
| In an endeavor to protect It's creditors as
| far as possible. it returned some goods
| which were shipped, but not used. This
| action has been seized upon as constitut-
| ing an act of bankruptcy.
1T is not possible to say at this time
just what percentage Of its Indebtedness
the assets of the company will pay
Voluntary Redemption of Stamps.
The trading stamp companies, winding
up their business in the District of Colum-
bia as result of the. legal warfare
waged against them by the Commissioners
and the merchants, today resented what
| they term the imputation contained in a
statement. published yesterday afternoon
made by William Henry White. assistant
corporation counsel of the District. to
| the effect that they are to be compelled
to redeem stamps issued by them.
The local manager of the Sperry &
Hutchinson Company said today that not
only was it unnecessary for the District
authorities to attempt to compel his COM
pany to redeem stamps issued by it. but
that his company had actually volun-
teered to redeem it's stamps and re-
quested the corporation counsel of the
District not to proceed against the COM
pany for violating the laws of the Dis
trict by redeeming the stamps.
Having taken this position" said the
manager, 1T is unfair for the District
authorities to now intimate that the re-
dempti0n of the stamps was due to any
action taken by them.