The Birmingham age-herald., 1913-03-15
Attorneys for Joseph I'll.
Hoadley File Petition in
Federal Court
ASK SIXTY DAYS TO
PRODUCE EVIDENCE
Petition Charges Valuation of Prop
critics of Company by Appraisers
Is Too Low-ActiOn Expected
This Morning

Contending that the proposed sale OF the
Alabama Consolidated company to the
Baltimore reorganization committee was
unjust and unfair to the creditors not rep
resented by that committee, that the re-
port of the three appraisers who recently
made valuation Of the bankrupt COM
pany property was far too low and ask
ing that 60 days time be given to SUBJ
stantiate these claims by actual evidence
was the import of petition filed in United
States court yesterday by attorneys rep
resenting Joseph H. Hoadley. chairman
of the board of directors of the bankrupt
company.
The petition was filed by Attorneys A.
G. and e. d. Smith, representing Mr..
Hoadley. The case was placed in the
hands of Attorneys Smith by telegram
from Mr.. Hoadley dated March H.
Action upon the petition will be taken at
10 o'clock this morning, when the proposed
sale of the bankrupt company to the re-
organization committee comes up before
United States Judge William 1. Grubb for
confirmation. Attorney f. N. Rich of
Baltimore, representing the reorganiza-
N-OAt
after his clients side of the case.
In the report of the appraisers made
last Saturday the value of the company s
plants, cash and property, was placed
at $4779, 496. .13. W. S. Lowell. II. A. Tur-
ner and P. q. Ault were the three ap-
praisers. This valuation, according to
the contention of Mr.. Hoadley, is less
than it should be-
Coffin Announced Plans
February 2s. upon his return from a
conference in Baltimore with the reorgan-
ization committee. Harry w. Coffin, CO.
receiver for the company, gave out plan
of reorganization of the bankrupt Ala
bama Consolidated. 1t is this plan which
comes up before Judge Grubb today for
confirmation or rejection, and upon which
the petition filed yesterday asking for 60
days extension before any action is taken
is based.
The reorganization committee of the
bankrupt company is composed of Joshua
Levering, r. Lancaster Williams John
SHELTON Williams, Henning Jenkins, j.
William Middendorf and w. A. Perkins
of Washington. 1t is claimed that the
committee has in its possession / LOO, 600
shares of the preferred stock of the bank
rupI Out OIL i,1oU,uUO SndreS, ana also con-
trolls a very substantial majority of the
common stock. At the time of the offer
| the committee gave Mr.. Coffin a check for
$4,000 as a token of good faith in the
transaction.
This plan of reorganization, according
to Mr. Coffin's statement at that time. is
as follows: The committee offers % To
assume all mortgages and sinking fund
of the Alabama Consolidated, (2) to paw
every unsecured creditor dollar for dollar
and 80 to pay the cost of administration
and then take over the property in con-
sideration of their services.
The petition of Mr. Hoadley as filed yes-
terday is as follows:
Petition Filed
In the matter of the Alabama ConsoI-
idated Coal and Iron company. q. banl.-
| rupt, in bankruptcy: In the United states
district court for the southern division
of the state of Alabama:
ITO the Honorable w. l. Grubb, district
judge:
Now comes A. G. and r. d. Smith as
attorneys for J. H. Hoadley, and repre-
sent unto the court that said J. I'll. .Hoad-
| ley, as chairman of the board of tirec-
tors of said bankrupt, has communicated
with the said attorneys:
T. The said J. III. Hoadley as chair
man of the said board OF directors OBJ
Alabama Consolidated Coal and Iron
company under the bid as made by. what
is known as the reorganization commit
tee of said Alabama Consolidated Coal
and Iron company and recommended l,y
the trustees herein.
80 Said objection is made for the rea-
son that the value of the property which
belongs to said bankrupt is greatly In
excess of the value of such property as
reported by the appraisers to this honor
able court, and upon the further grounds
that as the bid Is made by the said re-
organization committee, it is too low and
that the property of the Alabama Con-
solidated Coal and Iron company should
not be sold to the said reorganization
committee because the bid as made by
said committee is greatly below the ac-
tual value of the said property
"3. Appended to this objection as a
part of this petition is a telegram sent
by the said J. H. Hoadley as chairman
of the board of directors of the Alabama
Consolidated Coal and Iron company. ad-
dressed to r. d. Smith, and dated March
II, 1913 and 1t is prayed that said tele-
gram shall be taken as part of this pc
tition and considered along Herewith as
further stating grounds in support of this
objection.
"a. And the petitioner further shows to
the court that he has not had sufficient
time to properly collect the evidence in
support of the grounds of this petition.
and now requests the court to allow the
petitioner, as chairman of the said board
of directors, and in the interest of such
stockholders of the company as are not
represented by the reorganization COM
mittee, 60 days further time within which
to support the allegations of this petition
by proper evidence and that the confirma-
tion of rejection of said proposition of
ha mt I, .
said 90 days.
"All of which is respectfully submitted