Norwich bulletin., 1922-08-18
sEw HAVEN" HIRES

GROTON IRON WORKS
 Trustee r. LeRoy Harwood of then bankrupt estate of the Groton Iron Work has issued the following circular etter to some 1,5eO creditors in order to give them information as to the present status of the estate:
 Bankrupt Estate of the Groton Iron
 Works:
 New London Conn. July 5, 1922. To the Creditors of the Groton Iron
 Works:
 During the past two weeks we have negotiated with the New York, New Ha- ven Hartford Railroad Co.,, with a view to making tempc<-ry rental of part of the property for car repair purposes. We finally agreed on a plan which will give the railroad company the use of the blacksmith shop. the car- penter shop and the m4.:hlne shop with the heavy equipment cora ned therein at a rental of S2,500 a month payable in advance. All the small tools in these 1 buildings have been put away in the storehouse.
 We have completed the inventory of the property and now have our list of the machinery, tools and other equip ment which we admit are covered by the mortgages and separate list of tools | and equipment which are not under the mortgage. Some of the small perishabie l supplies have oeen sold for a few hun l dred dollars. Later on we proroee to dispose of an additional amount of per- 1 sonal property under permission of the court
 force of about 25 auditors repre- senting the United States Shipping Board. Emergency Fleet corporation. or department of justice, has been working on the books Tor the past six manths ! haincr "duces tecum., issued by the District of Columbia and approved by Judge Thom- as of the United States court, under whose jurisdiction we are.
 We understand that this work is sole
 ly in connection with the criminal case against c. ". Morse, ct al and that no
 information will be taken which could
 be used in defending the civil suit which
 we have against the United States Ship ping Board, Emergency Fleet corpora 1 tion. Apparently this auditing force
 will be in the office for some months . longer but it is agreed that we are en-
 titled to any information winch they l, may secure which may be of valle to
 the trustees or the creditors. The mortgage of approximately S90.- 900 held In the name of Jennie R. Morse against the Noank plant of the Grotor , Iron Works and which mortgage was subject to first mortgage of s30 oe0 , and accumulated taxes of aboat SIS 000
 was foreclosed in June at a public sale , The property brought less than S5G.- 900 and was bought in by Jennie R , Morse to protect her mortgage. Inas-
 much as there was no equity in the proo-
 erty for this estate no effort was made
 by the trustees to prevent foreclosu;e ( : the advantage of the trusee being the end of expenses for watchnan, etc.
 We are endeavoring with a small force to get our records into shape for
 the civil suit. So far as possible the
 trustee Is cooperating with the officials of the United States Shipping Board
 Emergency Fleet CorporZ.on, in main
 taining the property.
 In July Judge Thomas of the Unite<
 States district court ordered the estate to appear in the suit brought by tht
 United States against the Virginia Ship. y building Co.,. and Groton Iron Work. l and this suit is believed wil involve a determination of the amounts due un | der the contracts. This suit is pending , in Virginia and it is expected will com up for trial in October.
 The United States Shipping Board s Emergency Fleet Corporation has pro l. ceeded in foreclosure of its mortgage if through the superior court of the Stat Q | of Connecticut. An endeavor Is beini
 made to have this matter referred to tb l. United States court in the interest c F l the creditors This effort has not ye | 1 met with the approval of the shippin Q board officials or attorneys. The al 7 torneys for the trustee have argued be if fore Judge Thomas a stay in the fore if closure proceedings. No decision hs - been rendered on this matter as yet Tn h foreclosure proceedings cannot cone u ., | again before fall
 The trustee has iSe5 9 counter- r-claiI
 in this foreclosure action allegin
 breach of construction contract on th
 part of Fleet Corporation ani fo!lowin l. generally the allegations get forth in u ,h suit commenced by the Grn.on Iro ,n Works againa the rieet Co1ooratio V now pnding in the federal court. Ill There are approximately 1,50) cred ht tors and this circular letter Is mem ,h ca to answer questions which have arl lg en.