The Detroit times., 1913-11-24
RICH ASSETS
DISPOSED OF ON
GUARANTEE PLAN
Harris Brothers Co., of Chicago,
Agrees to Assume Liens and
Turn Over $4,000
SALE is FEATURED
BY LIVELY BIDDING
Successful Firm is to Receive Is
Per Cent for Profit and
Expenses =

Sharp competftfon between two pfd-
ders featured the sale OF the assets
OF the RICH Corporation. which after
being on the market for some time,
were disposed Of by Referee In Bank
ruptcy Joslyn, Saturday morning to
the Harris Brothers Co. Of Chicago,
on the basis of guaranteed bid OF
$240,0O0 above all encumbrances. This
sale will be confirmed at 1880 o'clock
Monday morning, Referee Joslyn an
nounced, unless by that time some
other bidder submits a proposition to
guarantee $255,000 or pay S260,000 or
more in cash.
The chief opposition to the success
full bidder was from Charles ID. Todd.
promtar of Detroit. A third bidder In
Theodore Friedeberg, representing
himself and Frank Brothers, Of New
York city. His proposition was In the
form OF a cash offer. He dropped out
Of the running at $211,000, declaring
that he never had heard Of selling
property on the basis Of the offers OF
his competitors.
The sale, which had been adjourn
ed from Tuesday, opened with an
offer from Friedberg, through his at
torney Henry Butzel, to pay 100000
cash as against the 100000 guarantee
bid OF Maurice Rothschild, general
manager OF the Harris Brothers Co.,
made Tuesday.
Then Mr.. Todd entered the lists
with an offer Of $235,0O0. not assuming
the $2S.400 In liens against the prop
erty, which meant about 1907 900 guar
anteed. Mr.. Rothschild raised the bid
to $4,000 after which Mr.. Friede-
berg made his last offer Of $211, 900
cash.
Referee Joslyn halted proceedings a
moment to get some agreement be-
tween the opposing bidders as to the
basis OF the contest, expressing re-
greet that the offers could not have
been on the same conditions. 1t was
arranged that Mr.. Todd's representa-
tive state his offers on the condition
OF his assuming the liens, as in the
Harris Brothers proposition, and
then the bids mounted rapidly to $780,.
900.
They continued steadily by $1,000
increases to $236,00O, from which the
Chicago firm jumped to $4,000 and
ended the contest.
The terms Of the sale are to guar
antee $4,000 on the real estate and
$l6S,OOC on the personal property.
The personal property is to be dis
posed OF in four months, and the 9TH
er within nine. From whatever the
property brings. the sellers are to
receive 10 per cent for profit and ex-
penses, provided that the expenses of
keeping up the real estate shall first
be met, and the amount Of the guar
antee paid
Mr.. Friedeberg asserted after the
sale that he was not yet done. and
would consider further the POSSIBLE
ity OF entering the contest again
Monday. The plan Of selling prop
erty on the basis Of guarantee, he
declared. was a new wrinkle" to q
business man from New York city.
With the unanimous consent of
the creditors present, Referee JOS
Ign announced that an order would
be obtained as soon as possible from
the United States district court
authorizing the payment of $4,000
upon the $4,000 of mortgages
against the RICH plant.
The total debt OF the RICH Is
more than $1.800,00O. The secured
claims amount to much more than
the assets. 80 that nothing will be
left for unsecured creditors.