Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1915-01-16
CREDITORS scent
A L0RIMER TRICK
Fear Joker" in Settlement
Plan for Defunct Gala
CHER Concern.

Chicago. Ill. Jan Is--what Is de-
el1rs6 20 be an attempt TO outwft the
creditors % the Lorfmer < GALLAGHER
company. the construction firm thrown
fz,o Bankruptcy By the La Sale bank
erass. was disclosed yesterday.
Il r charged the settlement proposed
fa- ths arms affairs vii allow WI
Ian Lonmer and Joseph Gallagher TO
retain possession % the tangible prop
cry o. the company and leave the
ersditors holding tbs bag. With a
doubtful claim on the assets OF SIs
southern Traction company. another
concern dominated by the La Sane
balk Interests
The proposal for the composition
viii be- heard b United States District
JrdEs Francis ". Wright OF DanvfIIe.
m on Jan % Several attorneys are
PLANNING a vigorous protest 10 the
efar. vhich has already been ap-
proved By a large number OF creditors.
n Il said William Lorfmer has brought
pressure 90 bear on these creditors
without their being aware OF the real
situation
The offer contempiates the creditors
taking three year notes for the
amoguts of their claims. these notes to
b. secured by the claim OF LOrfmer x
Calarlrr company on the Southern
Traction company The traction com
pary o. Indebted TO the construction
company for the building % the small
part ~ ifs line on operation out OF
East ST. Louis.
For lu addition 20 the claim OF the
construction company on the railroad.
there are other tangible assets which /
might be- used 20 secure their claims |
Among these assets are said 10 be the /
equipment o. the construction con- /
pa-v. worth about S125.JOO. and mon i
eys due from the city Of East St Louis 4
Ter sewer work amounting TO $4,000 |
and from the Illinois Central railroad |
$4,000
William r Trautmann Of St. Louis. i
receiver for the Southern Traction
company. is said TO oppose the compo-
s.tiou- He has pointed out that in
stead OF the Southern Traction com
5auy owing the construction company
.he sum Of Sf.Os6.OOO on bonds. the
fuatiou is reversed. and the construc-
loo company owes the railroad $780,
.G1
T1e railroad company has started
.1.t AGAINST the construction company
any right for the claim OF
be latter upon itself. Should this be
pleld. Il IS pointed out. there viii be
othinE left for the creditors % the
obstruction company n the compost !
ton is adopted.
The position OF one o. the protesting (
ruditors. J. VI. Sullivan OF East St
outs. IS outlined IN a circular letter :
snt 20 the others.
The composition reads the circu- T
lr. should not be adopted for the 4
sasous that: c
10 On not proposed that either Mr. {
crimcr or Mr.. Gallagher viii person
-iy ind0rse the notes n they have {
18th IN their ability 20 meet them. we a
be- no reason why they should not sign I
icm-
IL anything IS to be secured for 1
editors from the claims against the '
ucil0n company. the trustee in bank :
iptcy viii secure the same. and Is in
better position TO prosecute claims =
,alust the traction company than 2 h
ustee such as Is contemplated
The proposed composition contem- Il
atss that there viii be turned back
"a surrendered absolutely 10 the c
lrkrupt the machinery and fixtures, d
lparatus. etc. and also surrenters >.
aims owing by the city OF East 81
1uis and others. r
The LorfuHsr & Gallagher company If
~ or may not have d1Ee. a profitable b.
.ssaess IN the past. but In view OF K
q facts that brought on the bank pl
ptcy. the prospects FOR a sOOd bust p
So future are much less than when &c
q troubles arose" er