Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-02-25
LAND SELLING CORPORATION
KNOWN HERE ADMITTED TO
BE INsoLvENT.
PETITION IN BANKRUPTCY
FILED IN CHICAGO COURT
Company, Which Did Business In
This City and State Selling Cali
fornia Land, Disposed Of Large
Quantity H.r.Zstatsm.nt Made
Company is to Be Rs0rsanizsd.

The Daniel Hayes Company, an
Idaho corporation, with headquarters
In Chicago, which mas been doing
large business In California land In
terests, has been brought into the
federal court, Chicago, on the petit
ton of creditors. who represented
that the company was bankrupt. il
is said to- have been admitted In
court by a representative of the COM
pany that the corporation was In
solvent. The filing of the creditors
petition was consented to. FOLLOW
ing the court proceedings it was saiu
that the company was TO be re-
organized.
The company, which maintained
local agent in this territory Tor
long time. is said to have interested
a large number of local investors In
its California project, and that
very large sum, rumored to total
hundreds of thousands of dallars.
was invested with the company pyI
Marshallto town and central Iowa men.
One Of these, f. R Lay, OF this CITY,
recently filed suit here against the
company to enforce performance I'M
der a contract or to refund the
money he had paid in the trans
action.
Petition Filed in Chicago.
Regarding the filing of the credit
ors' petition and the federal court
proceedings in Chicago the Chicago
Tribune printed the following:
BY special arrangements with the
law firm of Morrill, & Shannon. re-
presenting the petitioning creditors
an involuntary petition in bankrupt
cy was filed yesterday In onlteo
States district court. praying tnat
the Daniel Hayes Company, or loa-ho'
which has offices at 100 North Dear
born street, be adjudged bankrupt
The firm is a farming real estate
concern.
"A representative appeared IN
court and filed an answer admittins
the insolvency OF the company ana
consenting to the petition.
According to a rough estimate py
Attorney Perry s. Patterson, the
liabilities of the insolvent company
are about 100000, the ready assets
$40 900. and recoverable assets, 81
200 900. Mr.. Patterson represents
committee Of trustees who are seek
ing to bring the company out OF IN
solvency.
Cancelled Contracts Cause Loss.
.sThe principle obligations OF the
HAYES Company arise out of what
are known az 'canceiations anu
cropping contracts Mr.. Patterson
said Under it's original sales plan
the company gave the buyer she
right to cancel contracts WITHIN
ninety days after execution. Cancel
atoms to the amount Of about s5SV.-
oa0 were made. A substantial
amount of these cancellations, am
informed, were collusive In nature.
TT seems statesmen were paio their
commission before the ninety days
had elapsed-so you can see no"
that worked out.
1.-THE HAYES Company collected a
substantial amount of money, esu,
| mated at 100000 or more, to be used
for cropping purposes. Some OF TINS
money-about s13O, oOo-was actually
applied to that end. The balance
went into the general operations.
Composition Offer Proposed.
ION behalf Of the Hayes Company
a petition will be filed Monday In
which an offer Of compositions VIII
be made to all creditors. The conc
position offer will be based upon a
reorganization of the company from
within. It will include a complete
change in the management policy
From now on the company will be
operated solely upon the trust COM
pany> PLAN which makes for SAFETY
| and profit"