Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1920-02-21
= ! S
IPllIlY ENDS
INDlNkRUP
49, DeeA lsland Concern wreck
u y Cancelled Csntracts,
liter NetesFic Career.

Financial disaster has 0vertaken
"a Daniel Hayes company, . real
ssiate concern which was organized
N Rock Island about five years ago
nd has recently had headquarters
a Chicago. Bankruptcy proceed
irss were begun yesterday, with
liabilities vastly greater than ready
sssets. but assets said to be recov-
erable sufficient to meet all obli-
cations.
Az 10 deal in Idaho orchard lands.
The late Daniel Hayes, ST., and his
am Daniel Hayes. Jr., both Of Rock
Island we're the prime movers.
1ney started with little capital and
nnerated at first in q small way.
land was bought in tracts and par
celed out on the payment plan. con-
tracts being deposited as security
lar loans to buy more land.
Removes to Chicago.
Things went along swimmingly
and the firm branched out. taking
nm ather lines. A large force of
.felo workers was employed. Of
tees in Rock Island were in the
Robinson building where the Rock
rland Trust & Savings bank is
nox located. About the time the
company was at the height OF pros
nerity the elder Mr.. Hayes died.
: ortly afterward the concern re-
we'd to Chicago, where 1t occu-
!. a an expensive suite of Offices in
The loop and essayel to operate on
sr even r ore extensive scale.
One fer ure of the sale contracts
was a <, ranty Of minimum re-
turn or purchase Of land without
less to the buyer. 1t seems that
This clause led to the downfall OF
the enterprise, it being charged
that 1rchasers banded together to
demand their money back.
The Chicago Tribune says of the
collapse of the company:
by special arrangements with
tile law firm Of Morrill, & Shannon,
representing tie petitioning credit
ors, an Involuntary petition in bank
ruptey WIS filed yesterday in Unit
cd States district court. praying
that the Daniel Hayes company of
Idaho, which has Offices at 109
North Dearborn street, be adjudged
bankrupt. The firm is a farming
real estate concern.
"A representative appeared in
curt and filed an answer admit
ting tn insolvency of the company
aid cohsenting to the petition.
Owes 5000, 900.
According to a rought estimate
" Attorney Perry S. Patterson,
the liabilities of the insolvent COM
pany are about 100000, the ready
assets $4,000. and recoverable as
sets 81 .209, 900. Mr.. Patterson rep
resents a committee Of trustees who
are seeking to bring the company
cut Of insolvency.
"Tha principal obligations of the
Hayes company arise out of what
are known as cancellations and
cropping contracts Mr.. Patterson
said. Under its original sales plan
the company gave the buyer the
right to cancel contracts within 80
{ ,ys after execution. Cancella-
l. ms to the amount of about $780,
900 we're made. A substantial
smount of these cancellations, I
am informed, were collusive in ma
Flre.
at seems statesmen were paid
their commissions before the 90
days had elapsed-so you can see
how that worked out.
1.-THE Hayes company collected
a substantial amount of money,
estimated at 100000 or more, to be
used for cropping purposes. Some
Of this money-about 100000
was actually applied to that end.
The balance went into the general
operations.
ION behalf of the Hayes COM
fany petition will be filed Monday
IN which an offer of composition
will be made to all creditors. The
offer will be based upo
/ reorganization of the company
Prom within. 1t will include COM
flete change in the management
policy. From now on the company
will be operated solely upon the
trust company plan," which makes
for safety and profit"