The San Francisco call., 1913-07-27
FL N. SMITH BACKS
BANKER TRUSTEES
IN HANFO ROW
Magnate Declares Partner
Filed Bankruptcy Move
Only When He Failed
to Get Properties
Continued From Page II

Tevis as we'll as my own as recently as
May ).
HANFoRD REPUDIATED CONTRACT
'Hanford has persistently repudiated
his contract to arbitrate our differences.
have sought and | now seek such an
arbitration.
1T was only because | did not wish
to embarrsss the administration of the
United Properties company by the trus
tees who had it in hand that | did not
press the immediate arbitration OF these
differences. | was not disposed to COM
plicate the. situation. even TO defend
myself against unwarranted criticism.
that | had not filed my contract to
contribute further assets to the United
Properties company My aim and pur-
pose always was. as it is now. to look
out for my creditors first and to think
of myself afterwards.
Under the conditions that l have
outlined. the administration of my af-
fairs in the hands of the +. II. Smith
advisory committee. men who had the
confidence of every decent man, and
were not mixed up in any personal con-
troversies between myself and Han
ford, was proceeded with. my creditors
lent a helping hand. they deposited their
1 collaterals with the Mercantile Trust
/ company of San Francisco at the in
4 stance of the committee to approx
mately 80 per cent of the outstanding g
] obligations, and week in and week out.
1 day after day, the committee has been
working hard and faithfully to dis
charge its trust and to see that my
creditors were paid in full.
HANFoRD NOT HIS CREDITOR
"Hanford had no part in the work
of that committee. ] owe him nothing,
he is not my creditor. Nevertheless.
he wanted TO control the affairs of the
United Properties company on his own
terms. he wanted the trustees of that
have named virtually to step down
and out and turn the whole thing over
to him. and this was his way of doing it
He demanded from the trustees that
they should give him an irrevocable
option on my entire interest in the
United Properties company. and that
they should tie UP in his hands for six
months my entire interest while he
went off to Europe to finance the sit
uation."
I'm the meantime. these trustees
representative business men, who had
SO far satisfactorily and successfully
administered the properties were to
sit still and helpless in practical sur
render of their trust and without right
or authority to administer the trust
property or to take advantage of any
opening or opportunity which thev
might themselves create, or which
might otherwise present itself to pro-
mote the interests of the creditors
and to accomplish the payment of
their obligations
HAvFoRD "wHoLE THING
The idea simply was that for six
months these men were 70 be wiped
off tae slate and Hanford was to be
the whole thing-a nice situation for
nv creditors. not TO speak of myself
If it were not for The gravity of the
situation the thing would be ridiculous
and because the trustees saw fit to re-
/ ject Hanfords inviting proposal he
turns around and procures his brother
and two or three of the attaches of
I his Office to file this bankruptcy petit
! ton
That Is the real situation and I