The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1913-12-12
COMMITTEE ANNOUNCES 1T WILL
OPPOSE MOVE MADE BY
TOLEDO CREDITORS.
WANT MONEYTOF|GHT PETITION
Members of the Creditors Committee
Are Asked to Send in l 1-2 Per Cent
of Their Claim in Order to Get
Funds to Resist the Proceedings.

In a statement issued yesterday BY
The creditors committee of the Var
yam Naval Stores company tAe pur-
pose of the committee to oppose the
petition in bankruptcy recently filed
against the company in Toleuo, Onio,
was announced and all creditors were
urged to give the committee their sup
port. The tull letter, which best ex-
plains the new situation, is as follows:
Brunswick, Ca, Dec. y, 1913.
70 the Creditors OF the faryan Naval
Stores Company:
u! cup SunoeloLd 10 ssodLnd 9Ql IoJ po
teresLS OF ali creditors and giving IN
formation to each creditor of the con-
dition and progress of the suit brought
Ey b. Borchardt & Co. VS.. The Yaryan
Naval Stores Co., pending in the dis
trict court for the Southern district
OF Georgia. beg leave to report On the
present status with recommendations
as follows:
Since this committees last report
there has been filed an involuntary pc
tition on the part OF three creditors
lii the district court of the United
States at Toledo, o., for the purpose
of having this company adjudicated a
bankrupt, and Immediately upon no.
tee of such suit the creditors commit
Iree. was called and Alfan discussion
OF the sane was had tit is the sense,
OF this committee that this additional
proceeding should Ne contested, and
that the affairs of the company and
the rights of the creditors oe adjudi-
Gated in the suit now pending in TIE
district court of the Southern district
of Georgia, and to that end have en-
gagged counsel to contest the suit in
the Toledo courts. The object OF this
| is to prevent the administration OF the
affairs OF the company SO far remote
] from its actual assets, and more espe-
cially to avoid the administration OF
It's affairs in two jurisdictions under
separate suits with separate officers
and expenses incident thereto. This
would involve large additional expendi
lures OF the assets OF the company In
paying double court expenses and ad.
diticnal attorneys fees, all of which
would be deducted before the creditors
would get anything.
This co lmittee has been charged
in the proceedings brought in Toledo
as being in collusion with the receiy
ars appointed by the United States
court in Georgia. This allegation IS
absolutely untrue, as this committee
has steadily refused to became par
ty to either faction OF Stockholders
and the only relations the committee
has had with the receivers were to OBJ
tain reports of the operations and con-
dition of the assets OF the company
from time to time to keep itself in
formed so that true and intelligent re-
port could be made Of the affairs OF
the company to the creditors with
such recommendation as would sub
serve their best interests.
The statements exhibited to the
committee of the operations of the
plant show losses incurred on account
CT the low market for naval stores to
such an extent that the committee has
concluded to petition the receivers
to sell the property at an early Gate
at figure sufficient to protect all
creditors, which petition will be press
ed unless a definite proposition OF set
tlement Is made to the creditors. The
assets OF tie company are consider
ably In excess Of it's liabilities aEo we
believe that united action OF the cred
itors on this line will be most bene-
fetal in securing for them the greatest
results.
| The committee, with the view OF
less expense to all the creditors, rec
ommended united action, and to that
end have employed competent and re-
liable counsel to handle all claims that
may be entrusted to It at a minimum
cost, and in order to defray such ex-
pense have assessed the member cred
itors IL per cent OF the face value
OF their claims which amount you
will kindly remit to Mr.. h. Il. Mason,
treasurer of this committee, BRUINS
wick, Ga. This percentage will cover
all present obligations and we will not
incur an expense creator than per
cent of the claims OF the members,