Evening journal., 1914-06-01
S3S,293 More TO
CO TO CREDITORS
Judge Bradford Declines to
Have $6,464 Paid Over to
BOndhOlderS
MUST STAND UNLESS
AN APPEAL IS TAKEN

General creditors of the Diamond
State Steel Company win be permitted
TO share pro rata in fund of S3S ,293.2s
realized from property of the company
in Pennsylvania which reached the
United States District Court of Della
ware, under a ruling of Judge Edward
G. Bradford this morning. In render
ing his decision Judge Bradford stated
that he hoped it would be the end OF
the litigation in the case
The matter was brought before the
court on rule to show cause why the
fund should not be distributed among
the general creditors of the steel COM
pany, pro rata. Counsel for the bond
holders contended that the sum OF So
464.Al should not be given to the gem
eral creditors, but should be distribut-
ed among the bondholders. They claim
ed that as result of mistake this
sum was added to the sum for distribu-
tion among the general creditors, pro
rata, when il belonged to them as bond
holders. Judge Bradford ruled that de-
cision had been made in the case and
that it would have to stand unless the
bondholders would take an appeal
Reuben j. Satterthwaite represented
Howard r. Wallace and James p. Win
chester, receivers; Horace Greeley East
burn represented bondholders owning
about 100000 worth of the bonds I;
John +. Neary represented John B.
Newkirk, who holds about s5sO,O0O of
the bonds of the company, and William
Clarke Mason of Philadelphia represent
ed the general creditors.
Judge Bradford in opening the case
stated that it seemed to him that, un-
less an appeal be taken. the funds
were properly distributed pro rata
among the general creditors. as dec-
sion had been made in the case at an
other term of the court.
Mr.. Satterthwaite stated that h'
wanted to make formal objection TO tn,
S6,464.2l being distributed pro rats
among the general creditors and asked
that it be distributed as prayed for by
hir1 in a petition filed some time ago
Mr.. Neary asked that the fund be dis
tributed to the bondholders. He stated
that mistake had been made in tn,
last proceedings and that the present
fund came into the registery of tn
court after the proceedings, and is moi
circumscribed by the other conditions.
Judge Bradford stated that it wa
known to lawyers that there were Ger
tain inaccuracies in the proceeding
which should have been avoided. bu
that now a new fund comes in, after de
cision had been made He stated to Nh
Neary that he did not see how tn
counsel could 90 into it without takin,
an appeal. He said the new fund coul'
not be treated separately without refer
ring to the other funds and that b
would not touch any of the application
unless an appeal were perfected. An al
peal might cost from $4,000 to Sl5,OOl
Mr.. Mason declared that decision ha
been made in the case and that he di
not think It would be proper to open III
case again, unless the counsel shoul
take an appeal.
The S3S ,293.2S is the result of sui
instituted by George w. Todd agains
c. B. Smith and Company for funds al
legged to have been improperly retaine
BY them in the organization of the frs
steel company. The claim was TO
1897 900 with interest. The receiver
were paid $4,000 on compromise an
after expenses were deducted the SUI
of S3S. .293.2s reached the court for dis
tribution. 1t is claimed by some of tn
bondholders that in the last suit tn
Sc 6.464.2l was given to the gener'
creditors through clerical error.
The total of all claims was Sl,2O4
5sO.37 and the new fund viii equal
dividend of about three per cent.