Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-01-20
SBORIH|[L RECEIVER
REPORTS 70 COURT
CHIEF ASSETS OF COMPANY BEEN
POSTED AS SECURITY AND
MoRTcAcED FOR BONDS.
CONDITION OF COMPANY
pEPLoRARLE, RECEIVER SAYS

r. J.. Shoemaker Files Report For
Which He Will Not voueh-Says e.
Fort to Recover Assets Of Company
For Creditors Not Be Worth While
May Call speers Into Court.
Evidence of "frenzied finance" and
the juggling of assets and resources
are shown in the affairs of the A. E..
Shorthil Company as set out in the
report OF T. j. Shoemaker. the re-
ceiver, filed in the district court Tues
day. Coupled with testimony given by
the receiver and his attorney c. H. E.
Boardman, the financiering OF the
company and its successor the Short
hill steel & Iron Works of Perry, IS
in some respects almost sensational.
According to the written report Of
the receiver and his testimony the A.
E. Shorthill Company is hopeiessly
bankrupt. According to the same
source OF information the Shorthill
Steele Iron Works has no more than
enough assets to pay its bonded debt
and liens on its plant. Both the re-
ceiver and lawyer said the Perry plant
is now shut down.
After the examination of Shoemaker
and Boardman was finished the hear
ing was continued. G. w. Lawrence,
formerly law partner of c. II. e.
Boardman is to be examined later. 1t
is quite probable that c. r. Speers.
president Of the A. E. Shorthill and
Shorthil Steel & Iron Works may be
summoned to be examined.
Describes Conditions IS DepIorabIe.
The receiver. being unable to dis
cover any real money Of any large
amount belonging to the company, says
early In his report, "in view OF this
fact and the deplorable condition Of
this corporation, your receiver hest
tated to employ accountants to audit
the same, and has worked out the mat
ter himself"
The receiver would not vouch for the
accuracy of the report, but says that
it WAS made from the corporations
books and the best data obtainable.
Lists Liabilities Of $249,206.
The receivers report lists assets of
$161,333, the convertible value of much
Of which IL very greatly in doubt, and
liabilities OF s249.2os.41.
Tho items of the assets, or resources.
are: The value OF the company's
option on its real estate in this city
now owned by G. w. Lawrence. $4,000;
1880 shares OF common stock of the
Shorthfll Steel & Iron Works, Perry,
(par value 1925. 0O0y and bills receiv-
able about $26.33s. The receiver testi-
fed that probably all of the bills re-
ceivable were In dispute or had counter
claims hung up against them.
The liabilities consist Of bills payable
OF sSs,10s.41: preferred stock issued
(par value $4,000: common stock Is
sued (par value $112.000)
The very largest of the many items
of the bills payable are: d. T. DEN
mead estate, $25,150.63; c. r. Speers,
s22,05s.37: First National Bank. city.
$4,000; Cambria Steel Company
s7.700: State Bank Of Latimer, $1,000.
and D. Fl. Young, s4,746. The item Of
$22.059.37 due Speers is said to repre-
sent money paid out by him personally,
OF which the Shorthill company had re-
ceived benefit. In these items so paid the
largest are -$16,699 to the First Ma
tional Bank. city, and 1864 to the D.
T.. Denmead estate
Reports Assets Shrunk.
Altho the chief asset OF the E. A.
shorthill Company lis the $125,000
worth Of stock in the Perry company.
yet the extent to which that asset has
shrunk may be judged by this comment
in the receivers report:
Till II IL Me of Dop he
report reads. represents in cash and
equipment over 100000 yet in Its
present condition 1t seems to be the
general opinion that not enough will
be realized to pay the $4,000 in bonds
and some $4,000 other liens on the
plant placed prior to the bond issue"
Stock Up For Collateral.
The resources OF the A. e. Shorthill
Company, the report says, were sold to
the Perry company for this S125, 600
worth OF stock in the Perry company.
} This stock has been posted as col
lateral, the report adds. and is now out
Of the reach Of the receiver.
CAS- near as your receiver can ascer-
tain,, the report runs on. 1850 shares
OF this stock were deposited with the
Denmead estate to secure certain obli-
posted with Brenton Bros, Dallas
Center. as collateral to secure Them"
The receiver ends the report on this
stock with this significant statement.
said stock Is Of little or no value"
Validity Of Stock Questioned.
This stock was issued TO the A. d.
Shorthill Company In payment for the
machinery ana merchandise Of the A.
e. Shorthill Company delivered to the
Perry company. The invoice OF this
machinery and merchandise the report
continues would be- about $4,000 but
It adds there Is much doubt ~ to
the validity Of the Perry stock thus is
sued as to whether same was valid
stock issue or not despite the fact that
the same had the approval Of the exc
cutive council OF the state
Whole Perry Plant Mortsassd.
The report goes on to say that It
was the purpose Of the receiver to
test the validity Of this issue Of stock
BY "a lawsuit to recover back the ma
chinery from the Perry corporation,
sbut," says the report, at was found
the machinery had been Installed in the
Perry plant, and the plant had been