Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1920-10-09
Bankruptcy
for
Stock Firm
Nv
Petition Filed Against,c>NEsas ,,,|
ers' Realty T 7s>" AVS a''
pany of Onnas, tys,, ,o's'A rging
Asset Shrinkage.
Thousands Are Affected

A petition i'll bankruptcy against
the Bankers Realty Investment
company, Bushman building, Six
teenth and Douglas streets, was
filed in the United States district
court yesterday by Alfred c. Nun
ger, Omaha attorney.
The petition was drawn by Nun
ger for Joseph Richtarik, jr., and
Mary Nosicka of Wilber. Neb,, who
claim to hold notes of the COM
pany for 500 and $500, respectively
and DR.. c. S. Minnich of Palmer,
Neb., and w. Arrasmith of Roches-
ter, Mimi, who profess in the peti-
ton to hold $11,999S0 and $l.000.80
in preferred stock of the company,
respectively.
The petition states the company
has ceased to carry on any bust
ness and is maintaining an Office
and mourning expenses which can
not be met from any income now
being received.
Assets Have Shrunk.
Further, Munger in his petition
declares that during the last year
the value of the assets OF the COM
pany have shrunk from more than
$l000,00O to less than $l50,000 and
the liabilities of the company are
far in excess of the present alleged
$l50,000 assets.
This is but an initial move in an
effort to straighten out the affairs
of the company and attempt to get
a settlement for stockholders and
note holders" said Munger.
TO accomplish this probably will |
take several years in litigation"
The specific act OF bankruptcy |
charged against the company is the
alleged sale of portion OF its !
holdings at Hampton, Ia, to the |
Van Dixie Plumbing company of
that city with the alleged attempt |
to prefer such creditor over its
other creditors.
"Poor Mans Chance"
The Bankers Realty Investment
in its six or seven years
of existence became one of the best
known financial institutions in three
states-Nebraska, Iowa and Kansas.
1t was founded by Peter Elvad of
Chicago, who came here to organize
the company, built magnificent
home in Fairacres and opened Offices
for his company on the first Hoor OF
the Bee building.
The stock was sold at Sl.20
share. 2
The plan, hailed as "the long
looked-for opportunity of the poor
man and the widow" became as pop
ular as hot cakes on a winter morn
ing.
Thousands Are Affected.
Hundreds of stock statesmen in
vaded the three states, working on
commission.
Stock sold by the company ran
into the millions.
There was a provision that if at
the end of 80 days the purchaser
wished. he might sell back his stock,
Munger stated.
There are dozens of suits pending
in the Douglas country district court
brought by stockholdcrs on thlS
provision in the stock selling con-
tract, according to Munger,
Thousands OF working people in
Omaha and as many thousands in
Nebras ska, Iowa and Kansas are al
fected in the bankruptcy proceed
ings, he declared.
Several Hotels Built.
As the money began to pour in,
the investment company gave birth
to the North American Hotel COM
pany, which was to build series of
hotels in Omaha, Ogallala, Grand
Island, Kearney, Scottsbluff, Nor
folk, Harrington, Hampton, Ia; OF
tawa, Kan. and Topeka, Kan.
Some of the hotels were erected.
ut was through the revenue OF
these hotels that the investors were
to get their dividends" Munger said
yesterday,