The San Francisco call., 1913-07-25
TEV|S-H HANFORD
INTERESTS SUE To
BANKRUPT SMITH
Petition Filed in Fight for
Control TO Throw Con-
Germ Into Court Man.
agernent
FRAUD CHARGED
TO "BORAX KING
Trustee Brobeck Sees Move
TO Influence Refinancing
Scheme


Scheme
Al open step IN the fght for control
ct the 2 " smith interests between
" :. Teviz ard r. G Hanford on one
hand and the advisory committee OF
san Francisco and Oakland bankers
who are trustees for the ~oorax king
On the other. came yesterday when the
Tevis-Hanford interests fled = petit
tion in the United States district court
70 have Smith declared 4 bankrupt
The petition asserts Smith committed
acts of bankruptcy n making assign
Hents for The benefit o< preferred cred
ftors. ard the action is brought through
IRE Indebtedness q the United Prop
critics company. Of which he IS oi-
rector and share holder
The petition was presented oy Alfred
Esnfo-d. brother Of r @. Hanford- Leo
P Dickex. private secretary 70 Ieylss
g z Gilman. president OF the Union
Water coura7v. ard for several years
sn engineer n TIE employ o r G.
Hanford. and the Union Land company.
T=Fis-Hzrford corporation
TRUSTEE CHARGES PLOT
7 reply. the bankers interests de-
care II : statement issued D. W /
Brobeck- ore Of the trustees appointed
70 handle the affairs ot the United
Properties corporation. that the signers
of rhe petition are acting under the in
sr5rzrion q r @ Ealford 10 influence
negotiations o< the last three weeks
regarding the financing n the United
Properties. and also % interfere with
Tle administration q Smiths affairs
~ The bankers committees
The purpose Of the application Is not
- aid The creditors OF Mr. Smith, II IS
rot even % aid those alleged creditors
wao are named IN the petition, de-
cizred 8fr- B-obeck such action man
ifsstly viii not aid in the adninistrs-
ton % Mr.. Smiths affairs. or in the
realization 70 his creditors Of the
amount II their claims. Tor will such
action 5e permitted 70 influence any
negotiations with AIr. Hznford or any
one else
It ought 70 be plain 20 any business
nan that the interest OF the creditors
VII be better served By continuing the
zG-fuist-ati0n Of Mr- Smiths affairs ii
rne hands If the committee Of reSpon-
stcie and well known men instead OF
throwing those Affairs into bankruptcy
recefwership and litigation with all the
attendant delay loss and expense
HOLDINGS OF PETITIONERS
The action has not the effect OF re-
moving the z NJ Smith advisory COM
ulsttee from is position Of control OF
The Smith properties. and the creditors
must be satisfied that their interests
s-e hest served as experience has
u-o-sd. through the administration BY
these gentlemen"
IN the Bankruptcy petition Dickey
asserts that he holds - first mort
gage Per cent sinking bonds OF the
company valued a. $1,000 each L IS
declared that Smith holds 1881 shares
- preferred stock of the United Prop
critics company and 2z6.ss7 shares OF
cornon stock These bonds have never
tsen redeemed. according 20 Dickev.
and Smiths proportion OF the indebted
ness OF ;zs.9ee. as a share holder. is
s1os-s
The ?. n smith creditors commit
Tee issued the following statement last
night. TIE committee consists OF
Frank ;. Anderson. John : Drum. Nor
timer F1eishhacker. ". " Garthwaite
ard c. o 9. Miller
THE COMMITTEES STATEMENT
"sIay we were appointed as q COM
D'trse % represent the creditors OF
These creditors were composed OF
several hundred corporations and in
divI1usls who were scattered all over
the country. and The collateral given
By NJ Smith 10 secure his notes con-
sisted q stock in corpora lions that
protection of these creditors and for
the public good generally we belieTed
Il or duty as committee 20 repre-
sent them
The powers conferred upcn Is under
the Ir1st agreement were broader III
charscteT could BE- exercised more
lar powers of receiver n bankruptcy
L was. therefore considered serv-
ing the best interests Of The creditors
10 have these advantages
Since our z-0CF--re-r have done
everything II or power 70 protect II
every way the creditors Of Mr. Smith
corpora t5ol M Smith was substan-
italy the sole stock holder To do this
* has been necessary 70 give constant
time and attention 10 the AFFAIRS and
finances OF the corporations II which
sfr Smith was 50 largely interested
One Of the matters upon which the
committees has been working for sew
erzt weeks. and which. 81 the present
time ! OF vital Importance. : rh- re-
financing % the HalseE loan Ct S1s5ae.-
COG due from the Oakland Railways
and which became delinquent June =.
ard also the re61zclrg of the Key
route basin bonds Of si-le9,e0e. which
Viii be due august -.
The creditors have been advised Eyy
- from tire 10 time ox he progress
~ have made and have given IS their
Eesrttest cooperation
Mr. smiths secured Indebtedness
amounts approximately TO sS-oe9. zoe.
ard that of the Realty Syndicate ex-
=
s efsa. .9oa- TIE Reaitg Syndicate also
Ess outstanding its syndicate skies IN
an amount approxImzring ss.oo0.9oe-
These sums in the aggregate cousC-
rute 81 GEO 600 Of debt
The creditors holding approximately
g 690. eco Of this total sum nave al
rea6v deposited their securities with
- Mercantile Trust company and have
signed authorizations giving the CON-
T7fttee full power 10 act Certain otner
s~-6Ffors holding over 5000 coo OF
sfsfrgs have agreed 20 cooperate with
r71a committee At the present time.
s@t.e~e<ore there = outstanding only
e. Gao sa9 Of secured claims which have
80 -er expressed their Intentions
Until me petition IN bankruptcy
~ss FLED this afternoon the committee
I'D not know that Sucn acton was
s>-o-rser7rgated- Should the court act
,--s9r tie petition and declare Ar- Smith
; hsu5<rz1ut our work viii be taken over
- fT7e receiver or receivers VITO may
5e appointed o. -
~~s1-es - each creditor q full . nd CON-
80 SraseFsent which has been IN
1-.-s -so~7 for the last two weeks. o.
es.srs-rrfrc done By * since our ap-
H~,5r,sy~.fnr showing also tne present
ssssss-gfSrF1r or Nr. Smiths auatrs ana t1e
s@s5~~ Of rne corporations wnAc1 Ae
oRned or coEETolleo