Norwich bulletin., 1913-07-01
RELATIONS OF STAFFORD co.
 AND U. S. FINISHING Ce
Report of Former Corporation Submit ted to Creditors-@uestlon Over S13e,eee Claims.

The relations of 6: A. Stafford & G., Inc, and the United States Fin ish Ge are given In 8 comprehensive report just submitted te the creditors of IA. Stafford & Ce, Inc, by the receivers, George Waleett and James G. Graham, through the counsel fer the receivers, Rosenberg & Lewis. The re- ceivers estimate that there will be left in their hands fer final distribution to Stafford creditors about $125,eo0. The total unsecured debts are about $e30,- O09 The question of the rejection of $130 000 of the claims of the United States Finishing Co. is te be consider ed by the Stafford creditors.
 The receivers say concerning the Finishing companys claims:
 'The United States Finishing Co. claims to be a creditor of Stafford & Co for total sum of $320,421.96. In- ventory value held as offset amounts to S27609.11. Of the total claim, $780, GOO is represented by notes to Stafford & Co., acquired by the United States Finishing Co. under the following cir cumstances:
 "On Jan. 31. 1913 a company called the converting company (SubStantial- ly all of the stock of which was about equally owned by G. A. Stafford, J. H. Wright then president of the United States Finishing Co.,. and J. s. Jerome, then treasurer of the United States Finishing Co.) was indebted to the United States Finishing Go. on notes for $150,000, and to Stafford & Go. for about $137.000. It's assets consisted of the $145, 900 par value of stock of the Sanders, Harborough and Kosciusko companies and the $50,00 second mortgage notes now held by the Staff ford company and merchandise carried on the books at or about $115, ,000.
 By an arrangements between Staff fx1r. NT,.frr assets of the concerting company were transferred to the Stafford company, in return for which Stafford & Co. can celled it's claim against the converting company for about $137 000 transferred to the converting company worthless note of the Hillcrest Manor association for about $7,500 and executed and de- Ivered. to the United States Finishing Co. notes of the Stafford company for $150,000, of which prior to our ap- pointment as receivers notes aggregat- ing s20,000 were paid
 Tt is for the creditors to consider a this meeting whether any steps shall be taken by us to disaff1rm this transaction, thus rejecting $130, 900 of the claims of the United States Finish ing Co. and claiming an offset for S20, 900 notes that were paid between Jan. 31 and the date of the receiver ship. If this course is adopted, it will be observed that the stocks of the Har- borough Sanders and Kosciusko com panieS will revert to the converting company, and that the converting company will have a claim against the receivers of the Stafford company in respect of the merchandise transferred from the converting company to the Stafford company. Our efforts to as certain the exact value of this mer- chandise have been so far unsuccess- fuI.
 Tn case the transaction should be disaffirmed. the United States Finish7 ing Go. and Stafford & Co.,, Inc, would be the principal creditors of whatever could be realized from the converting company. It is a question whether in actual money there would be any greater return for the creditors of this company than by allowing the trans action to stand in the present form. A complicated and expensive litigation would necessarily result"
 Attention of creditors is called to meeting on July at 2 D. m. in the office of Rosenberg & Lewis, ITO Broad way, and the hearing before the court m J1IJV