Jasper County Democrat, Volume 7, Number 12, Rensselaer, Jasper County, 25 June 1904 — IN FEDERAL COURT. [ARTICLE]

IN FEDERAL COURT.

The Lafayette and Mulberry Banks Throw McCoy Bank Matter. On petition of the First National Bank and the Merchants’ National Bank, of Lafayette, and the Farmers’ National Bank, of Mulberry, filed last Friday, the McCoy bank affairs are now in the Federal or Bankruptcy courts. The two Lafayette banks are creditors of the McCoy bank in the sum of about SIO,OOO each, while the Mulberry bank is creditor for $5,000. Deputy United States Marshal Rankin came on Monday and took charge of affairs. He appointed Assignee Chapman as temporary custodian of the property of the defunct bankers, and the first hearing in the matter will be held before Referee Bowers of Hammond on July 5. Under the bankruptcy law the federal court can go back and uncover transactions four months prior to the filing of the petition in bankruptcy as we understand; A Trustee either resident of Rensselaer or nonresident will be appointed, who will take charge of all assets and dispose of same under the direction of the federal court. It is also said that, the whole matter will probably be closed up in six months and creditors be paid whatever is coming to them. Should other property or assets be found later, the matter can be re-opened. We are informed that small creditors need not fear the real estate will be sold at a sacrifice under this proceeding, as some of the larger creditors are interested in it* bringing every dollar it is worth, and will see that it does bring full value.

Suit has been begun in the Carroll circuit court by Assignee Chapman to enjoin the Bowens of Delphi and New York City from prosecuting a suit to get control of notes held by the Chicago Central Trust Co., as collateral for loans made the McCoy6. This is the same paper, we understand, as that sought to be secured by Winifred Pence et al., and proceedings are practically the same. The sale of the McCoy bank buildiug was confirmed by Judge Hanley last Saturday, Judge Thompson withdrawing his objections to the same. Ten thousand dollars is paid down and tl e balance in September, wheu the 6ale is approved in open court. All sales of personal property and real estate heretofore made by Mr. Chapman will without doubt be approved by the federal court.

Another mortgage for SB,OOO, given by Mattie M. Rinehart (A, ! McCoy’s daughter) to E. W. I Bowen & Go., excuted June 18. 1904, was filed for record here Monday. This mortgage also covers the Hanging Grove lands of Mrs. Rinehart and makes a total of $54,500 placed on this land in the past ninety days. The incumbrance is now about S3O per acre, as much as many conservative people here, who are acquainted with the land,.consider it worth. • Dr. Auburt L. Berkley has given assignee Chapman a mortgage for $3,725.95, the amount of his overdraft in the defunct McCoy bank, on his fine residence property on McCoy avenue. We understand that John Makeever holds a first mortgage on this property for $2,000, which has been about half paid out, and that Dr. Berkley has a standing offer of $5,000 for the property, which if true, would pay off all incumbrance and leave him a small equity in the property. We also understand that he asks $6,500 for the place. Appraisers Harris and Yeoman filed two appraisements of assests Monday, on notes and overdrafts. The appraisement of the notes found in the bank, the face of which aggregated $39,885.94, probably does not amount to over SIO,OOO, many of the notes being entirely valueless according to the appraisement. We notice that the following notes, of S. R. Nichols, the republican county treasurer, who is a candidate for re-elec-tion, are considered absolutely worthless: One note for $644.90. given Jan. 25, 1904, and dne Oct. 25, 1904. One note for $6,374.28, given Dec. 1903, and due Dec. 1904. One note for $6,374.28, given Dec. 5,1903, and due Dec. 5,1904.

One note for $6,374.28, given Sept. 6, 1901, and due Sept. 6, 1902. One note for $6,374.28, given Sept. 6, 1901, and due Sept. 6, 1902. One note for $619.57, given Jan. 25,1904, and due April 25, 1904. The total of all these notes which the appraisers declare in their judgment to be worthless, is $28,761,59. Two old notes of Mack Caldwell, a former race horse man of near Mt. Ayr, for $289.78 were reported of no value. The over-draft of A. G. Hardy, the republican sheriff of Jasper county, for $717.60, is also valued 000,00 in the appraisement, as is over-draft of the Jasper County Republican Central Committee for $159.16; the over-draft of $1,855 43 of F. B. Myers, the republican postmaster; the overdraft of 8. R. Nichols, the republican county treasurer, for $1,202,55; W. A. Rinehart’s (A. McCoy’s son-in-law) overdraft for $1,699.91. The appraisers valued Tom’s 40 acre island in the Kankakee at $1,200, the improvements at $l5O and the gasoline launch at S3OO.