The San Francisco call., 1913-07-27
"Borax King" Breaking ST.
lence, Says Partner, "Un-
able to Be Whole Thing"
Started Bankruptcy
BACKS TRUSTEES IN
WAR FOR CONTROL
Declares Capitalist Repudi-
ated Contract to Arbi-
trate Differences

F. M. Smith has broken the silence he
mas maintained since his vast interests
were thrown into the hands of a trus-
tees, committee of San Francisco bank
ers last May. As the trustees were
handling his affairs to his satisfaction
he refrained from entering the contro-
versy in person, but yesterday he made
plain his own belief and intentions,
pushing aside the opinions of others as
TO what he really thought.
In brief he declares that he stands
with the banker trustees and accuses
r. G. Hanford OF trying to force the
trustees to step down and turn over
United Properties and all to him while
he (Hanford) went to Europe to
finance" the situation.
Smith states that he believes he con-
tributed more than his share to the for
nation of the United Properties, and
that the claim of the Hanford-Tevis in
terests that he should make further
equitable
This, in addition to other differences
between the three partners led to his
submission Of the question to disin-
terested arbitrators. THAT was my
platform then and ] have been stand
Ing on it ever since,'' he asserts.
'Hanford," he says. has persistently
repudiated his contract to arbitrate the
differences. He had no part In the work
Of that committee. I owe him nothing
and he is not my creditor. Neverthe-
less he wanted to control the affairs of
the United Properties on his own terms.
He wanted the trustees Of that COM
pany virtually to step down and out
and turn the whole thing over to him
The idea was that for six months
these men were to be wiped Off the
slate and Hanford was to be the whole
thing-a nice situation for my cred
itors, not to speak Of myself"
Smith declares his intention of full
and honorable payment OF all his obli-
cations
sT was solvent" he says, my credit
ors were amply secured and all that
was necessary to work out the full
payment of my obligations to them was
the normal businesslike liquidation of
my property, which stood behind my
obligations"
SMITHS STATEMENT
His statement in full follows:
"The other day R G. Hanford filed
petition in bankruptcy against me.
More precisely, the petition was filed
by Hanford's brother and two or three
attaches Of the Hanford-Tevis Office,
but Hanford can not deny and he now
confesses the paternity of this petition.
"The petition was not filed at the
instance of the genuine creditors; they
were not consulted, they were satisfied,
and they have reason to be satisfied,
with the present administration Of my
affairs. I have done what any right
minded man would do under the cir
cumstances. I was solvent, my credit
ors were amply secured, and all that
was necessary to work out the full
payment of my obligations to them
was the normal, businesslike liquida-
tion of my property, which stood be-
hind my obligations.
II took that property and put IT in
the hands Of men who would command
the confidence Of my creditors and of
the community. and I asked these men,
as trustees in the first instance for my
creditors, and only secondarily for N.Y.
self, to take hold of my estate and to
administer 1t, to the end that my cred
itors should be paid in full dollar for
dollar.
CITES ABLE TRUSTEES
Everybody knows who these men
are: Frank B. Anderson, president of
the Bank of California; John S. Drum.
president of the Savings Union bank of
San Francisco: Mortimer Fleishhacker.
president of the Anglo California Trust
company; c. o. G. Miller. the we'll
known capitalist, and w w. Garth
waite, president of the Oakland Bank
of Savings.
would any man who had the in
terest of my creditors a heart have the
disposition to wrest my property from
the hands of men like these to throw
that property into bankruptcy, receiver
ships, litigation, delay, expense and i'm
pairment, and does any creditor sup
pose that thing of that kind is meant
to help him?
More than that, in January of this
year. the affairs of the United Prop
critics company passed under the ad-
ministration of three trustees, James
K. Moffitt, vice president of the First
National bank of San Francisco; Van
derlyn Stow president of Thomas Day
& Co., and William A. Bissell, assistant
traffic manager of the Santa Fe rail
way and two attorneys. Gavin McNab.
representing the Hanford-Tevis in
terests and w. I. Brobeck. representing
himself.
CONTRIBUTED HIS SHARE
There had been differences be-
tween the Hanford-Tevis interests and
myself in respect to the properties to
be contributed to the United Proper
ties company on its formation, and
this is where the claim comes II, that