The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1913-12-17
REPLY MADE BY
COMMITTEE HERE
ANOTHER LETTER ISSUED BY
THE CREDITORS COMMITTEE
OF THE COMPANY.
BANKRUPT PETITION OPPOSED
Committee Says it Has Taken No
Part in the FactionaI Fight Now Be-
ing Waeed and Urges Unsecured
Creditors to Stand Together.

L.
E. Knisely, published elsewhere, the
creditors committee of the Yaryan
Naval Stores company, has issued the
following, which will be of interest:
December 10, 1913
To the Creditors of the Yaryan Naval
Stores Company:
Since mailing our last letter to you
we have received copies of two circu-
lar letters to creditors, mailed from
Toledo, Ohio, one of which is signed
by H. T. Yaryan and The other bv l..
E. Knisely, both of which you have
no doubt received.
Our information is that the yaryan
letter was obtained by an interested
attorney in the bankruptcy proceed
ings, through holding out to him a
vague hope of agreeing upon some
plan of reorganization OF the company
upon terms satisfactory to Mr.. Var
yam, though no guarantee of effectin2
such a plan was entered into.
We are also advised that Mr.. Var
yam is bitterly opposed tc the presen
bankruptcy proceedings.
AS to the position of Mr.. knisely,
we think you should have the bene-
fit of our information. Mr.. Knisely
Is president of the Northern National
Bank of Toledo. He was, until re.
Gently, prominent member of the
stockholders protective committee,
the purpose of which was to secure
control of the stock of the company
Having succeeded in this, he appears
to have resigned from that committee
and Immediately set about to control
the claims of the creditors, which, i
successful, would put one of the To
ledo factions OF stockholders, repre-
sented by him, in complete control
OF the entire situation, condition we
think would not be to the hest interest
OF the unsecured creditors.
Mr.. Knisely states in his letter that
his bank is the largest creditor. This
may be true, but he failed or neglected
to tell you that his bank is secured,
and thereby occupying a position en-
tlrely different from that of the unse-
cured creditors whose combined
claims are many times greater than
his.
Mr.. Knisely says that if the bank
ru2tcy proceedings go on, trustee
Will have to be elected, and the cred
Hors have the power to select, and
there should be some concerted action
We fully concur in this statement the
law SO provides, but we do not agree
that the unsecured creditors should
place such power in the hands of any
Icledo party, and especially with one
whose claims are secured.
This committee has taken no part
in the factional fight between the
stockholders that has ragged since the
troubles of the company commenced,
neither do we propose to do so. We
believe that your interest will be best
served by placing your proxy with this
committee under the terms outlined
In our former letter. All unsecured
creditors should stand together as a
unit in this matter ii the best results
are to be obtained, and no time should
be lost in sending in your proxy.
We might, however, advise that we
are resisting the bankruptcy proceed
lngs at Toledo and now have able
counsel on the ground for that pur-
pose. We have every reason to be-
HeVe that We will b. successful in de-
feating the efforts of the Toledo bank
ruptcy proceedings AS soon as that
suit is determined upon, or possibly
before, this committee will advise you
of such other plans as we may have
In view for the protection of the in
terests of the creditors; involving the
early sale of the property under the
present proceedings and prompt dis
tribution of assets TO the creditors.
Trusting to hear from you promptly
as to your position in the matter, we
beg to remain,
Very truly yours,
FRANK D. AIKEN, Chairman.