Jasper County Democrat, Volume 7, Number 9, Rensselaer, Jasper County, 4 June 1904 — McCOY BANK MATTERS. [ARTICLE]

McCOY BANK MATTERS.

The assignee of the defuuct McCoy bank filed a petition in court last Friday asking to be allowed to make certain arrangements to take care of the Babcock & Hopkins indebtedness to said bank. The petition, stated that the said grain firm was indebted to the following: A. McCoy & Co., notes and overdrafts, unsecured, $10,681.56; A. McCoy & Co, notes held by the Central Trust Co., of Chicago as colateral, unsecured, $11,199.21; First National Bank of Lafayette, $3,437.91 unsecured; First National Bank of Rensselaer, SIO,OOO, secured by mortgage on the elevator at Rensselaer, making a total indebtedness of about $35,000. The petition set forth that certain of the creditors of said firm were threatening to throw them into bankruptcy, and that if such action was taken and the property sold at forced sale, the creditors would not likely receive the full amount of their claims,while if given time the firm could pay out in foil, their property being worth considerably more than their indebtedness. It had been agreed that the said firm should transfer all its property to a trust company to be formed for the purpose of handling same, and would then lease the elevators and machinery at an annual rental of 16,500 for the first year and $7,000 thereafter until all of said indebtedness was paid, the said rental to be applied pro-rata on said indebtedness. If the profits of their business enabled them to do so, the saidfirm would pay off said indebtedness faster, and that all of said net profits, after living expenses were paid, should be applied to this purpose. The court granted the petition,

and the “Babcock & Hopkins Company,’’ composed of E. B. Sellers, of Monticello, and Jesse E. Wilson, Geo. A. Williams, B. F. Fendig, and W. C. Babcock, of Rensselaer, has been incorporated and will handle said business according to the above plan. The capital stock is $50,000, divided into shares of SIOO each. One sharejeach is held by the five directors and the rest by Jesse E. Wilson, trustee, who will surrender same, as fast as the indebtedness is paid, to Babcock & Hopkins. The creditors agreed to this plan, and the mortgage of the First National Bank has been released in accordance with same. This firm has four elevators and machinery, besides numerous weighing and buying stations, and also has about $25,000 standing out with farmers in the way of seed grain, balances due them on grain shipped, etc. Their assets are probably in the neighborhood of double the amount of all their liabilities, and this move gifes them plenty of time to fix up all indebtedness without in any way crippling their business. The assets above liabilities of every kind are over $40,000, Mr. Babcock informs us. They do a big business aud necessarily have a large amount of money tied up at all times. They enjoy -the confidence of the farmers throughout the community and their standing with them will not be shaken by this move. The unexpected failure of the McCoys simply caught them with much of their capital tied up.

Assignee filed petition Saturday for leave to renew note of SI,OOO of L. B. Josserand, held by Delos Thompsotn as collateral security; court grants authority to renew said note and assign same to Delos Thompson. No farther proceedings in the matter to throw the McCoy bank case in the bankruptcy courts have been reported, and we are told that nothing has been filed to that end in the federal court at Indianapolis as yet. The injunotion matter of the assignee vs. Winifred Pence et *al, to prevent the latter from further prosecuting their suit in Chicago to secure possession of collaterals in the possession of the Central

Trust Co., was heard by Judge Hanley in chambers Tuesday, and a temporary restraining order granted. The case will come up for hearing on its merits at the September term of court. Assignee Chapman on Wednesday filed schedules of the real estate that have come into his hands, as follows: 202.67 acres in Jordan Township. 2,000 63 519.15 “ “ Union “ 40 “ “ Rarkley “ 160 “ “ Glllam 40 “ “ Jasper and Lake counties (Tom's island in the Kankakee.) The inventory also included lots 9 and 10 in block 6, (the Dexter property), and the four acres of land connected therewith lying betweeu the river and Weston cemetery, owned by T. J. McCoy. Our understanding is that Tom had but little equity in this property. The sale of the personal property on the McCoysburg farm took place Thursday and aggregated about $2,800.