The St. Joseph observer., 1922-11-18

life story Of L. Il. Smith, oil man,
director of the Modern Woodmen of
America, and wholesale indorser Of
notes. told in a petition for voluntary
bankruptcy filed in the federal court
last week.
For summing up twelve pages
of closely typed plcadings. Smith,
through his attorney. Frank w. Nc
Allistcr, former attorney general OF
Missouri, says:
He has SS.52 in a bank.
lie carries 500 in his pocket.
He owns $500 worth Of furniture in
a rented house.
lie drives a Packard Twin Six car.
And he owes $1,7O9,461O1!
Mr.. Smiths case is unparalleled in
the annals of the Kansas City bank
ruptcy court
Attorney Is Puzzled
The petition does not state in what
manner q man with 1852 in the bank
and $50 in his pocket is able to pre-
vail on the leading banks Of the Unit
ed States, Including the Commerce
Trust company and the Gate City Ma
tional bank of Kansas City, together
with national banks in Oklahoma,
Kansas, Texas, Louisiana, Illinois,
Iowa, Kentucky. Indiana. Nebraska
and New York. TO permit him to bor-
row. or "go good" for s1,7OO, 900.
But Mr.. Smiths petition says he
did it.
81 don't understand it all myself"
Attorney McAllister said.
Mr.. Smith could not be reached to
make an explanation.
His daughter, Miss Katheryn Smith.
who said she is the only occupant OF
the Smith home, 1915 Holmes street.
asserted she knew nothing concerning
her fathers business.
And father is out OF the city
where do not know" Miss Smith
added.
Figures Arc Amazing
The petition as filed has amazing
figures.
With his cash resources of $2S.52
on one side of the ledger and the
S1,709,461.O1 on the other, Smith con-
fesscs he "signed notes for others to-
falling S1,2S5.2S1.95." These are in
cluded in the $1,7OO,OOO.
Mr.. Smiths attorney says he does
not understand this, either
"As nearly as I can understand the
affair" McAllister said, smith in
dorsed for others in seevral business
deals involving oil wells, their drilling
aand leases.
THE funds Of the Modern Wood
men of America, OF which Smith is a
director, are not in the slightest way
involved.
"Those for whom Smith indorsed
notes failed, and now he is failing-a
bankrupt, Just as they were"
Forty-four Creditors
Forty-four creditors are listed in
Smiths appeal for release from his
debts. In this list are included thirty
one banks. lie owes these banks sums
ranging from 5000 to s44,14s.9s.
The American Exchange National
bank of Shreveport, La, is the heav-
: lest creditor named in the appeal.
Excluding the money Smith says
he owes on the notes Of others, Smith
! hat ha l.
1906.
Friends OF Smith last night said the
entire failure was "just another deal in
OIL"
"Played OIL Game"
Mr.. Smith, his friends said "played
, the oil game" He plunged heavily
. they said, in leases and in wells that
failed to materiallze.
Many of the men for whom he says
\ he indorsed notes were also in the oil
! business Their ventures. 1t was said
J, were made together. Smith going on"
!, the notes of his associates.
n Judge Arba S. Van Valkenburgh Of
e the federal court will hear the peti.
n tion. 1t was expected the court would
= order an investigation into the failure
$ with view OF discovering, II possible
a the exact methods used in obtaining
e such colossal credit on such trivial
e assets.
Z Such Investigations are conducted
u by the department of Justice. acting
under orders of the federal court
!. Kansas City Journal.
n 1T WAS FITTING