Jasper County Democrat, Volume 7, Number 5, Rensselaer, Jasper County, 7 May 1904 — RINEHART RETIRES AS ASSIGNEE. [ARTICLE]

RINEHART RETIRES AS ASSIGNEE.

McCoys Substitute James H. Chapman In His Stead* to Which Creditors Acquiesce.

VICTIMS STILL BEINQ HEARD OF. Court Orders Trustee to Sell Real Esstate and Personal Property. The McCoy bank failure and the matters growing out of the same continues to be an absorbing topic in Jasper and surrounding counties. The action of the McCoys in dictating whom the trustee should be, and attemptiug to get one of the family on the assignee’s clerk roll has increased the suspicion that there are matters connected with the failure that they desire to keep from the public. Most of the depositors seem to want the fullest investigation, and insinuate that no “whitewashing” will go. We understand that the creditors had agreed on ex-Clerk |John F. Major as assignee in place of Mr. Rinehart, the elder McCoy’s son-in-law, who had been heretofore appointed by the McCoys, and to this the McCoys had assented and even solicited Mr. Major to act as such. This the latter hkd consented to do, providing there was no opposition and that there were no strings tied to him. This was all agreed to, it is said, and a meeting was held Saturday night of the creditors to accept Mr. Major. At this meeting T. J. McCoy requested that he be employed by Mr. Major as clerk, on salary, during the investigation. Major then got up and said, we are told, that if he was selected as assignee he would reserve the right to select his own clerks, and would not be hampered in his work by having assistants selected for him. The depositors, and also the public, who are indirectly interested in the investigation of the bank’s affairs, had the most implicit confidence in Mr. Major, and knew that the matter would be honestly and conscientiously administered upon were chosen assignee. After this plain statement by Mr. Major it seems the McCoys did not want him to act, and the elder McCoy had considerable to say against his selection, we are told. It is said that Major told T, J. McCoy on the street here Monday that he (Major) was not soliciting the position of assignee, but that he wanted something done in the matter of the bank’s affairs, and that unless something was done before six o’clock that evening, affidavits would be tiled in court against them. Matters warmed up more Monday than any time yet, and the crowds that gathered about the bank corner and the numerous discussions that took place gave promise that the apparent apathy of the depositors was experiencing a change, and that something must be done at once.

into the bank’s assets. Mr. Chapman is a good accountant, an attorney of good standing, and will no doubt discharge his trust to the best of his ability. On petition of I. Tuteur and others. Judge Hanley appointed Mr. Chapman receiver Tuesday afternoon and fixed his bond at $320,000 and gave him four days to file the bond. He has secured a surety and will begin his duties. There are five different firms and individual businesses to be settled, as we understand —A. MoCoy, personal; T. J. McCoy, personal; A, McCoy, Son & Porter; A. McCoy & McDonald; and A. McCoy & Son, the latter the banking firm. The opinion seems to prevail among attorneys that the personal debts of A. McCoy and T. J. McCoy will have to be settled first, and that these claims will be paid in full out of the real estate. The McCoy, Son & Porter and the McCoy & McDonald debts, if any, will no doubt likewise be paid in full, and the remainder of the proceeds from the sale of the real estate will be applied to the bank assets to' pay creditors of that institution. Winifred Pence foreman of the Nelson Morris ranch, who with other members of his family had SIO,OOO iq the defunct bank, has entered attachment proceedings in Cook county, 111., against the McCoys, but we are unable to learn the nature of the property attached. Some property which they own or it is thought they have an interest in, has evidently been discovered by Pence’s Chicago attorney, that is not known of here. J. W. Yokel, another creditor, has also begun like proceedings in the Cook circuit court. We understand Mr. Chapman will employ Bert Van Voorst, cashier in a bank at Monticello, to assist on the bank books. • An order of court was made yesterday morning for the trustee, Mr. Chapman, to sell the real estate and personal property included in the deed of assignment, except notes; also the bank building and fixtures. It is reported that $45,000 in collateral is up with a Chicago bank for a loan of $15,000, and Mr. Chapman will look into this matter at once also.

Following are the names of additional creditors of the bank that have been reported to us since our last issue. We do not vouch for the correctness of these figures, but they are probably approximately correct: Theodor© Warn©, Parr *220 00 D E Hudson. Parr 160 00 John S Lakin, Parr 100 00 JacobKeed,Parr 100 00 James L Babcock, Parr 60 00 F M Yeager, Mt. Ayr 400 00 Wm Crisler, Mt. Ayr 400 00 Mrs Wm Crisler, Mt. Ayr 800 00 T J Richardson, Valina 40 00 Mort Ritchey. Marion tp. farmer. 300 00 Mrs Gish, Jordan tp 175 00 Mrs Sophia Chilcote, Marion.... ...... 600 00 John Romine, Mt. Ayr 140 00 Milroy Township Trustee 31 00 James Clark, Marion tp. farmer 50 00 Mrs Carrie Healey, Marion tp. widow. 345 00 Miss Martha Benjamin. Rensselaer... 250 00 Maggie Welsh, Valparaiso 500 00 Horace Marble, Wheatiield, banker.. 800 00 Nazel, Monticello 5,000 00 Mrs Israel. Rensselaer, widow 20 00 Mrs Peyton, Rensselaer, widow 10 00 Mrs Shea, widow. Rensselaer.. 300 00 Wm Haley, Marion tp 600 GO

Go-betweeners then got in their work, and a meeting was held at the court houseJMonday afternoon and Mr. Rinehart made a little talk to the creditors,explaining the mistake in including the 330 head of cattle in the deed of assignment, or most of these cattle, saying that those shipped from McUoysburg lacked some $250 of paying what indebtedness there was due Wood Bros, on them, and that of the others shipped out a draft had been received by him (Rinehart) as assignee for the amount due the McCoys. The amount of this draft was not given. He stated that as there were some objections to himself as assignee and to the man whom the creditors had centered upon (Major), he would withdraw and present the name of a new man whom he thought both sides could unite on, and presented James H. Chapman. The announcement came as a surprise to most of the creditors who had expected that Major would be agreed upon, but as there were no objections made to Mr. Chapman the latter was accepted and Rinehart turned over the deed of assignment to him,

Mr. Chapman then came forward and stated that he would accept the trust if satisfactory to all parties, and that he would use his best efforts to realize as much on the assets as possible. He said that he had made no promises to anyone, and would make a full, free and unhampered investigation