Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-01-23
PROBE DEEPER INTO
SR)R|A|lL AFFAIRS
MORE DETAILS Ct TRANSFER
RING LOCAL ASSETS TO
PERRY COMPANY.
TRUSTEE FOR BOND ISSUE
REFUSES TO ISSUE BONDS
C. II. <. Boardman, Attorney For he
ceiver Makes Statement in Court
That Harry X. Denmead Ho'os
Order For $4,000 Worth OF Bonds
That lad Never Been Issued.

Order For $4,000 Worth or Bonds
That Had Never Been Issued.
More details of the financing and
transfer of the assets aal property d
the 4. L. Shorthill Company to the
Shorthln Steel & Iron Works, OF
Perry and the financing Of that cor
poration were brought Oh. in the Gls-
trict court Friday afternoon q: a con-
tinuation of the examination of the
receiver T. j. Shoemaker and his at
torney c. II. L. Boardman. Tcaldnan,
who was for many years attorney tor
the A +, Shorthill Company, and {. II.
Sueers its president. and is counsel
fer the First National Ban. Of TINS
city, one of the largest creditors OF Me
4 Z Shorthill Company, was the only
WIRES.
Boardman Makes Statement.
Most OF what Boardman added - de-
velop the details of the financing Of the
departure of the local Shorislih com
ipany and the organization OF the
Perry company We're MS voluntary
statements Later attorneys for the
creditors, who asked for this exam
nation, cross examined hial but not
a great deal was added 10 y nat he rad
already said His former law part
ner, c. w. Lawrence, who vas eX-
pected to be present o be examine |
as 10 the negotiations by Wdicn ne
came into possession of what WAS
formerly the real estate and plant of
the A. Z, Shorthill Company. Med with
the court a statement of what nc had
paid for the Shorthill companies and
the property ne had taken over from
that company, and what ne mad re
I ceiVed.
Order For Bonds Not Filled.
In opening his statement Boardman
said that March IS, 1914, the Short
hill Steel &. Iron Works. of Perry. gave
to Harry x Denmead. as trustee for
the Denmead estate and the First Ma
tional Bank, of this city an order for
$50 900 worth of bonds that were to
be issued by the Shorthil Steel & Iron
| Works.
He said that April :, mortgage for
s100 600 vas fled against the Perry
plant in Dallas county. and $4,000 of
the issue of bonds secured by that
mortgage We're delivered to the Cen
trail Trust Company, Des Moines trus-
tee for the bond holders.
About April Is, he continued, the
order Denmead held was presented to
the trustee The Central Trust Com
pany. refused to deliver the $4,000
worth of bonds to Denmea1, or TO de-
liver any bonds TO anyone for that
matter.
Was Additional Security,
Was this 1000 worth of bonds
ever delivered TO Denmead ~ asked C.
H. VanLaw.
NO, they are in the hands of the
trustee or they We're dav before yes
terday Boardman answered.
He said the $50. 900 of bonds was tc
he collateral in addition to the s75.-
900 worth Of common stock Of the
Perry company to secure the debts
owed the First National and the Den
mead estate
DO you know. if this 100000 il
bonds was to secure -hese debts 70
the Denmead estate and The First Ma
tional Bank" questioned T. F. Brad
ford
y understand" replied Boardman
| that these bonds We're to run to Den
| mead as trustee TO secure any deb
| The A. Z. Silortl1;Il Company owed tn
| bank or the estate.
Lien Ahead of Mortgage.
| Boardman went on TO say that tn
| 800 900 worth of bonds were repre-
| sented to be first mortgage bonds. Tn
| mortgage, ne said. was against all tn
| plant, machinery. merchandise and rea
estate of the company in Perry. But
| he said. before this mortgage wa
| placed on the plant liens to secur
| pa yment Of materials, etc, that wen
into the plant had been established
against the factory. The Denmea
order he said. had been issued befor
| any of these bonds We're sold.
Some Bonds Not Certified.
Il understand" said Boardmar
"that there are 10000 or 100000 O
these bonds that never passed thru tn
hands Of the trustee. / don't know a
TO their validity"
| Later ne was asked ny Bradford
What do you know II me $50 90
worth Of bonds that were never turne
over to the trustee"
4 understood that a bank of Ne'
Hampton held $4,000 of these bond
hut l don't know anything about i
| Eut they had never been IN the hand
| OF lHe trustee anu idu never zee
certified TO by him" answered Board
= man.
: Bonds Issued For s25,soo.
He continued that only S25,so0 wort
\ Of bonds had ever actually been cert
fled by the trustee and Issued. T.
|, Shoemaker had reported 20 the cou
that about $4,000 worth Of these bono
We're in circulation. Boardman sal
they had been SOLD TO people at D.
Moines Perry, and Dallas Center.
Did you know the extent of the il
debtedness of the a. F.. Shorthill Con
q pany at the time the plant was estal
lished in Perry2' F. e. North
asked.
Il thought 1 did the witne
laughed but was mistaken. thong
$4,000 or $4,000 would clean up ever