Iron County news. [volume] (Hurley, Wis.) 1913-1950, 1917-03-10
RECEIVER FOR GAS COMPANY.
Union Trust Co. of Detroit Named as
Receiver for IronwOod Gas Co. Fore
closure Proceedings Started.

From last week 5 Ironwood News
Record We excerpt the following
regarding the lronWood Gas Co.
which should prove of interest to a
large number of Hurley residents
who are patrons of the company:
On Saturday of last week Judge
+ 5. s. Cooper signed an order Civ
ing the Union Trust Co of Detroit
the authority to act as receiver for
the IrOnwood Gas Co. and to issue
$40 900 in receivers certificates to
enable the local management to
tide over the financial stringency
into which it has been placed.
simultaneously with this order
the Union Trust Co. filed a bill of
complaint at Bessemer, asking that
foreclosure proceedings be institut-
ed Immediately. The trust COM
pany IS petitioning for such a fore
closure on the grounds that the
IronwoOd Gas Co. has defaulted in
the payment on the interest of
bonds due on January | and has
failed to furnish insurance on the
property and to pay the city taxes
on its property for 1915.
The plaintiff in its bill also petit
tions the court to give the trust
company the power TO assess all
present stockholders to the full
amount of their stock subscribed
for in the organization of the Iron
wood Gas Co. During the prelim-
iuary investigation of the company,
it was learned that large blocks of
stock were given to many bond
/ purchasers as a bonus for buying
the bonds, and the trust company,
through this legal procedure, seeks
to hold each credited stoCkholder
liable to the company to the amount
of stock with which he is credited
on the books of the company.
1t is believed that the gas COM
pany will not contest the petition
of the trust people. A letter from
II. Lyndale Smith, filed with the
papers of the complainant certiies
to that effect. The letter is as fol
lows:
Union Trust Company.
Detroit, Michigan.
Gentlemen: We understand
that you are about to commence
foreclosure proceedings, involving
the request to the court for your
appointment as receiver under the
trust mortgages dated July /. 1909
and July |, 1914, made by the Iron
wood Gas Co. to you as trustee, the
ground of your foreclosure being
default by the Ironwood Gas Co
of payment of interest on the bonds
due January /, 1917, and failure to
keep up and furnish insurance and
to pay the taxes for 1916. We are
further advised that you further
allege the insolvency of the com
pany and its inability to meet op-
Grating and other expenses under
its present conditions.
The Ironwood Gas Co. is in ac-
cord with the proposed proceed
ings. 1t hereby admits all of the
said defaults and valves any per
iod provided by the said trust com
pany for the redemption of the
same. as a condition precedent tC
foreclosure. 1t authorizes YOU Il
represent TO the court that it join:
v0u in your request for a receivei
and consents that YOU may be ap
. pointed by the court as such receiv
. er.
Yours very truly,
H. Lyndale Smith, vice pres.
State authorities are also in fav
OF of the Union Trust Co. to act a
receiver for the local plant Ale,
]. Groesbeck, in letter to Judg
Cooper, asking him to grant tn
petition Of the trust company, clear
lv states the attitude of the rail