The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1916-01-21
Proceedings to Come Up on
January 20 in Bankruptcy
Court
From Wednesdays Dally


There is likely to be some display
of fireworks, when the bankruptcy
case of P c. Morrell is taken up in
the federal district court. It is TN
derstood that claim of $4,000, pre-
scented by the rather of the alleged
bankrupt, is to be contested by the
other creditors. 1t is expected that
claims of other relatives of his VIII
also be fought. The alleged bankrupt
is cited to appear on January 20.
Local business men, who are or
are thought to be creditors of P. c..
Morrell, proprietor of the New York
department store, which was burned
out in the recent destruction OF the
Brandrup building by fire, are re-
ceiving letters from various mercan-
tile agencies, which are seeking in
formation in regard to the creditors,
and urging co-operation.A
The following letter has been re-
ceived by several from the Merchants
/ Credit Adjustment company of New
York
1--WE have just received telegram
from our correspondents that an in
voluntary petition in bankruptcy mas
heen fled against the above debtor
This action was taken as last re-
sort in order to protect the interests
of creditors and after our correspon-
ents had fully investigated the case
and had found the facts to be approx
imately as follows:
Shortly after the fire which oc-
Cured in the debtors premises at
lyotN toi LODI
the debtor and were informed that
the liabilities were less than $4,000,
! with assests estimated to be worth
at least $4,000 The assets were
stated to consist of money due on
insurance policies of $29,50O and ABOUT
$500 in cash. 1t now develops that
the insurance companies claim that
MOrrelrs stock was carried on mis-
books at retail price instead Of az
cost price and the insurance COM
! panies have refused to pay more than
| $4,000 for the loss on the stock and
81 600 for the loss on the fixtures.
+ Mcrrell has refused to sign proofs of
Loss on an adjustment of this kind and
; the two gentlemen to whom the in
surance policies had been assigned
would not take the responsibility OF
settling the insurance at this reduced
! figure. so that nothing could be done
! regarding this matter, until some one
, in authority had taken charge of Nor
rell's affairs.
Suit Fly His Father.
"a further complication arises cut
Of the fact that Morrell has been sued
by his father for an alleged claim of
upwards of $4,000. P. C. MorreiI re-
! fused to say whether or not ne in
tended to contest this claim. There
are other alleged claims due relatives
and other claims which do not show
on the books at all, which it is our
intention through our correspondents
TO contest. The liabilities according
ly, including these alleged claims,
would no doubt exceed $4,000, with
assets of about 100000 If our cor
respondents, however. are successful
in contesting the fathers claim and
the claims of relatives and those
claims not appearing on the books,
the liabilities will be considerably
, reduced and creditors should receive
a very large percentage upon their
claims.
"The petition in bankruptcy was
filed after consultation had been had
with the Wyman- Partridge company
md Butler Brothers. who, we are adj
vised. agreed that this action should
be taken, and receiver put in charge
of the assets at once.
ut is quite essential that we have
the cooperation of the creditors N
this matter, if their interests are 70
; be properly cared for. and we would
suggest that Won send r.s by return
mail, a statement of your account, to-
gether with any financial statement
received by you. either direct from
fhe debtor or through the. mercantile
agencies