The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-01-21
CLOSE BIC PLANT?
PiersOn Company To Be Shut
Down Soon, Is Belief.
Property May Be Sold by Order
of District Court.

The closing of the Piersen Manu-
featuring company's plant at 700 East
Eighth street and the sale of the prop
erty at the earliest possible moment
was indicated today when motion
by two bondholders to intervene in
the litigation was argued before Judge
George Whitconb in the district court
That the plant should be closed in
order to put an end to the heavy
operation expenses seemed to be the
unanimous opinion of several at
torneys who appeared in the interest
of the receiver, the trustees. the
bondholders and others interested.
Col. Clad Hamilton, representing the
two bondholders who sought to inter
Vene, told the court that in December
1921, the earnings of the company
amounted to $247.s7 as compared
with more than $4,000 for salesmen's
salary and expenses alone
Judge Whitcomb indicated that ne
is ready at any moment to sign the
order for the sale of the proptrty. Just
how this matter will be handled, how
ever, is the stumbling block in the
transaction. No definite action was
taken today and the decision on the
motion of the two hondholders to in
tervene was postponed until Janu-
airy 20.
1ulCTNGuCs
The motion was filed by Frank c.
Boasen, of Hollywood. Cal, and Chas.
W. Boasen, of Oklahoma City, who say
they are holders of $63, 900 worth of
the company's bonds. Their attempt
to intervene in the suit brought against
the company last September by T. c.
Daniels, large stakeholder, is based
on the theory that the order of the
court authorizing the receiver to issue
Of are feas
gives a preference to henholders who
were not made parties defendant.
Among these are the Bank of Topeka
and the Merchants National bank. The
Boasens argue that they should be
permitted to intervene in order to pro-
tect their own interests.
The two banks. however together
with the receiver, represented by
George McDermott. opposed the mo-
ton on the grounds that the bond
holders interests are represented by
the trustees. Paul 3. Sweet and w. L,
LCwrance, both of whom are parties
| defendant. and that the admittance Of
the Boasens would open the gates to
all the bondholders. of whom there
are some $50. thus making a ponder
Gus matter of litigation without addi-
tional advantages to any one. W. b
Lowrance himself favored the inter
vention of the Boasens. While Judge
| w JllcOInD ulti IOl RUE on the TlOuOn
! it was plainly indicated, it was said
that he intends to overrule it.
Property Should Be Sold.
The motion for an order of the
| court to instruct the receiver to sell
the property was filed some time age
| by Johnson & Beck, but has not beer
| ruled upon. Colonel Hamilton, rep
| resenting the Boasens. and Lowrance
representing the trustees, today both
| expressed the belief that the property
| should be sold at once. George NC
Dermott acceded to this demand an6
intimated that the plant will be closed
| without further parIey.
| The validity of the receivers certifi-
! Gates of which some $4,000 worth
have been issued, was Indirectly chal.
| lenged by Colonel Hamilton in pre-
senting the Boasens' motion. He of
| fered the suggestion that if the court
! had intended his order of September
| rs as it read on its face-that the
| receivers certificates should be e
| prior lien on the property-that it il
| invalid because it violates the consti-
tutional amendment prohibiting the
| confiscation of property without due
process of law, and because no state
may pass a. law impairing the obi.
CATION of contracts.