The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-24
NELLIE bly, CAN GO
ON MAKING BARRELS
Mrs. Seaman Ends Three Years
Fight by Compromise
With Creditors.
AGREES TO PAY $4,000
She Employed Forty Lawyers
in Efforts to Clear Up
Court Tanole.

Ar soon as formal court order IL
entered Mrs. Elizabeth Cochrane Seaman
(Nellie Bly, will be free to manufacture
steel barrels to her hearts content. Her
three years fight in bankruptcy courts
marked By n bewlldering series OF side
issues and in the course of which she
employed at least forty lawyers and paid
a contempt fine of 5000 was ended yes
terday by n compromise which is de-
cldediy agreeable 10 Mrs Seaman.
She and the american Steel Barrel
Company. of which she Is president agree
10 pay TO Adolph l<ieudl. trustee of the
bankrupt lronclad Manufacturing Company
$4,000. which with the $4,000 already In
the trustees hands makes the total pay
ment $4,000. In return all claims and
Lawsuits against her and the barrel COM
pany are discharged and the company IL
enabled TO carry on It's business without
interference.
The settlement was reached before
United States District Judge julius Mayer
In Brooklyn.
Many Parties to Action.
The parties to the agreement are on
the ono side Trustee k!endl, Brown Bros
& Co, the bankers, the Western National
Bank, the philadelphia Warehouse Com
pany, the McKeesport Tin Plato Conf
pany, J. Fred Pierson and Benjamin Liss-
berEer: on the other side the American
Steel Barrel Company. Mrs, Seaman and
her mother, Mrs. Mary j. Cochrane.
Mrs Seaman inherited the 1ronclad
Manufacturing Company from her hus-
band. the late Robert Seaman. Then She
avfa Oh mud anatomical n alppl barrel
formed the American Steel Barrel Com
pany and built up a large trade.
In 1911 the Ironclad company was
forced into bankruptcy. Its creditors
maintained that the two companies were
really one and that the assets of the
prosperous barrel company could be used
in paying the Ironclads debts.
Mrs seaman insisted that the companies
were separate and that nobody could
touch the American Steel Barrel Conf
pany. That's what the big fight that has
been going on ever since early in 1911
and that was ended yesterday was about
Head Of both Concerns.
The creditors asked Federal Judge
Chatiield TO extend to the barrel company
The receivership OF the lronclad COM
pany. Mrs. Seaman resisted bitterly. She
admitted that she was president of both
companies and nominal owner of virtually
company was independent Of the other.
Judge Chatfleld on March IL. 1919. gave
all opinion refusing to extend the receiver
ship. saving that any claim to the assets
Of the barrel company should he asserted
III a pienary suit.
For a few hours Nellie Bly, though
She had won. But Immediately the Iron
clad's creditors charged In m affidavi
that Judge Chatfied was biassed In Mrs
Seaman's favor and acting under new
clause of the Federal judiciary law neve
before invoked In this state. Judge La
connie. az senior Judge of the Clrcui
Court Of Appeals, transferred the l!tiga
tu rom Ju - Chatfeld TO Judge Mayer
Mrs. Seamans counsel took their pro
test against tnis move TO the United states
supreme Court. which was inclined 4
~ 18th them NJ to the merit of the
centen,ion. but ruled that they had pro
tosteu 100 late.
Agreement IL Reached.
So Lavver Philip !. McCook, as specia
MASTER continued his hearings az TO tn
relations of Mrs Scaman's two companies
The contestants got together severa
months ago, with the result approved b.
Judge Mayer YESTERDAY In erect IN
agreement apparently indicates that tn
lronclad Manufacturing Company's inter
est in the American Steel Barrel Compan
was only $4,000.
From the comparatively straight pat
outlined above the case has wandered be
cause of various side entanglements int
many other courts. The 5000 contemT
fine which Mrs. Seaman paid was impose
because she failed 10 produce the books G
the American Steel Barrel Company.
For forgery of checks amounting
more than 5000, 900 she had two employee
OF the Ironclad company indicted and sl
sued banks which had cashed the checks
Of reCRnfl
IN the case, put in bill for $4,000.
Yesterdays settlement she was represents
10y Louis -. Van Doren of 30 Nassa
street; Whi;ridge. Buter-& Rice for II
creditors and Edwin Il. Rice and Luke
Lockwood for Trustee kleuul