The San Francisco call., 1913-07-25
TEV|S- HANF0RD
INTERESTS SUE
BORAX SMITH
Petition Filed in Fight for
Control to Throw Con-
Germ Into Court Man
agement
FRAUD CHARGED
TO CAPITALIST
Trustee Brobeck Sees Move
to Influence Ref1nancing
Scheme

An open step in the fight for control
of the F. NJ Smith interests between
". S. Tevis and R. G. Hanford on one
hand and the advisory committee of
San Francisco and Oakland bankers
who are trustees for the ''borax king"
on the other. came yesterday when the
Tevis Hanford interests filed a petit
tion in the United States district court
to have Smith declared bankrupt.
The petition asserts Smith committed
acts of bankruptcy in making assign
ments for the benefit Of preferred cred
itors. and the action is brought through
the indebtedness of the United Prop
critics company, of which he is di-
rector and share holder.
The petition was presented by Alfred
Hanford. brother OF r. G.. Hanford, Leo
r. Dickey, private secretary TO Tevis;
C. E. Gilman. president of the Union
Water company, and for several years
an engineer in the employ of r. G.
Hanford. and the Union Land company.
a Tevis-Hanford corporation.
TRUSTEE CHARGES PLOT
In reply. the bankers interests de-
Brobeck. one of the trustees appointed
to handle the affairs OF the United
Properties corporation. that the signers
of the petition are acting under the in
spiration of r. G. Hanford to influence
negotia tions of the last three weeks
regarding the financing of the United
Properties. and also to interfere with
the administratio Of Smiths affairs
by the bankers committees.
s-The purpose OF the application is not
to aid the creditors of Mr.. Smith. ii is
not even to aid those alleged creditors
who are named In the petition de-
clared Mr.. Brobeck such action man
ifestly will not aid in the administra-
ton of Mr.. Smiths affairs, or in the
realization to his creditors of the
action be permitted to influence any
negotiations with Mr.. Hanford or any
one else.
'It ought to be plain 10 any business
man that the interest of the creditors
will be better served by continuing the
administration of Mr.. Smiths affairs in
the hands of the committee of respon-
sible and well known men, instead of
throwing those affairs into bankruptcy
receivership and litigation with all the
attendant delay. loss and expense.
HOLDINGS OF PETITIONERS
- nf 70
moving the F. VI. Smith advisory COM
mittee from its position of control of
the Smith properties, and the creditors
must be satisfied that their interests
are best served. as experience has
proved through the administration by
these gentlemen
In the bankruptcy petition Dickey
asserts that he holds 26 first mort
gage per cent sinking bonds of the
company, valued at $1,000 each. It is
declared that Smith holds 145.237 shares
of preferred stock of the United Prop
critics company and 32S,697 shares of
common stock. These bonds have never
been redeemed, according to Dickey,
and Smiths proportion of the indebted
ness OF $4,000, as a share holder, is
sIo979
Gilman. according TO the petition,
holds title to 333 first mortgage bonds
-
ued at 81, 900 each. These bonds, 1t is
charged, Smith has failed to deliver 10
Gilman, and Smiths proportion of the
amount owed Gilman on the bonds is
S140,625. none of which, 1t is said. has
been paid, though all is now due.
Gilman also declares he holds the
note of the Union Water company for
s1.s1s19, of which Smiths proportion
is 1851.
SMITH ACCUSED OF FRAUD
Hanford AYERS Smith is indebted to
him s2.e56 on United Properties com
pany bonds. and s4,22s as his proper
ton of a s10.01426 loan TO the United
Properties company.
1t is declared that the first act of
bankruptcy on the part of Smith was
committed May 5, 1913, when he made
general assignment for the benefit
of his creditors to the Mercantile Trust
company of San Francisco and that this
conveyance was made to hinder. delay
and defraud his creditors The as
signment is declared to be fraudulent
because the Union Trust company
agreed TO pay certain moneys from that
coming in under the trust for the sup
port and maintenance of Smith and
his family.
Smith committed an act of bank
ruptcy July s, while insolvent, it is
charged, by transferring $4,000 worth
OF stock of the West End Consolidated
Mining company to B. r. Edwards OF
Oakland.
1t is further alleged that fraud was
committed when he transferred to his
wife 750 900 shares of this company's
stock valued at 81 900 900 which she