The San Francisco call., 1913-07-27
FIN. SMITH BACKS
BANkE ER-TRUsTEES
IN HANF ORD ROW
Magnate Declares Partner
Filed Bankruptcy Move
Only When He Failed
to Get Properties :
I OWE HIM NAUGHT,
is MAGNATE'S Def
Declares Capitalist Broke
Contract After Trying
to Grab Lines
7 OWE HIM NAUGHT,'
is MAGNATE'S Def
cantinued From Page u


I was obligated to turn in additional
railroad stock, but it was my conten-
tion that I had more than contributed
my share to the properties OF the
United Properties company and that
the claim of the Hanford Tevis inter-
ests that l should make further con-
tributions was unwarranted and in
equitable"
The existence of these differences
and my refusal to yield what believed
to be an unjust and unfounded claim
led to an agreement on my part to sub
nit my differences with the Hanford-
Tevis interests to disinterested arbitra-
tors, who should resolve all questions
between US on the basis of what was
natural, equitable and just between the
parties under all the circumstances.
That was my platform then and l have
been standing on it ever since.
This agreement TO arbitrate our diff
ferenees was confirmed and renewed
over the signatures Of Hanford and
Tevis as well as my own as recently as
May 5.
HANFoRD REPUDIATEp CONTRACT
'Hanford has persistently repudiated
his contract to arbitrate our differences.
I have sought and l now seek such an
arbitration.
II was only because Ola not WIS
to embarrass the administration of the
United Properties company by the trus-
tees who had ii in hand that l 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 I have
outlined, the administration of my af-
fairs in the hands of the f. NJ. 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
collaterals with the Mercantile Trust
company of San Francisco st the in
stance of the committee to approx
mately 80 per cent Of the outstanding
obligations. and week in and week out.
day after day, the committee has been
working hard and faithfully to dis
charge its trust and to see that my
creditors We're paid in full.
HANFORD NOT HIS CREDITOR
"Hanford had no part in the work
of that committee. / owe him nothing,
he is not nay creditor. Nevertheless,
he wanted 10 control the affairs Of the
United Properties company on his own
company, composed of such men as !
have named. virtually to step down
and out and turn the whole thing over
to him, and this was his way of doing 1t.
He demanded from the trustees that
they should give him an irrevoca bic
option on my entire interest in the
they should tie up in his hands for six
months my entire interest while he
went off to Europe to finance the Sit
uation."
representative business men. who had
so far satisfactorily and successfully
administered the properties were to
ait still and helpless in practical sur
,ender of their trust and without right
n authority to administer the trust
property or to take advantage Of any
,pening or opportunity which they
night themselves create. or which
night otherwise present itself to pro-
note the interests of the creditors
an5 to accomplish the payment OF
.fei~ obligations.
H4GTORD "WHOLE THING.
The idea simply was that for six
months these men were to be wiped
>f the slate and Hanford was to be
he whole thing-a nice situation for
ny creditors, not to speak of myself.
situation the thing would be ridiculous
md because the trustees saw fit to re-
.ect Hanford's inviting proposal. he
.urns around and procures his brother
md two or three of the attaches of
lis Office to file this bankruptcy petit
ion.
That is the real situation and I
want the public to know it and l want
ny creditors TO know It,
I propose to stand with the board
# trustees.
Il propose to devote the rest of nv
ife and everything that / have in the
world TO the full and honorable pay
nent of nly obligations.
L want my creditors to stand with
ne in standing by the trustees and
want TO enjoy and retain the good
opinion of the community in which
rave passed the best years Of my life
md TO the uphuilding of which I have
rfed, as best / could to contribute
II am now confronting the anoma-
Gus situation of man to whom I owe
1othing, acting as the promoter of a
bankruptcy proceeding against me- in
ease where my actual creditors have
been safeguarded and assured and are
,atisfed with the conditions as they
low exist"
sTATEMENT DUE TOMORROW
John S. Drum, spokesman for the
smith trustees. said that the long ex-
,ected statement to the creditors
night be ready tomorrow afternoon.
He called upon the railroad commits
non yesterday In reference to an ap-
slication for authority for an issue
~ the San Francisco-Oakland Termi-
ial Railways of certain securities
necessary to carry out the reinancing
,lans of the trustees. This was taken
% indicate that the Smith trustees
will proceed with the unraveling of the
smith tangle irrespective OF the bank
'uptcy proceedings instituted by Tevis
Ind Hanford