Jasper County Democrat, Volume 8, Number 35, Rensselaer, Jasper County, 2 December 1905 — THE DEPOSITORS [ARTICLE]

THE DEPOSITORS

To Be Saddled With Loss Of County Funds. TRUSTEE PROPOSES COMPROMISE. Nichols to Offset $15,500 Owed Me* Coy Bank Against Like Amount of County Funds Lost Therein. J. H. . Chapman, trustee in bankruptcy of the McCoy estates, has entered into a compromise with the bondsmen and 8. R. Nichols by which—if approved by the creditors of the McCoy bank —it is agreed that the $15,500 owed by Nichols individually to the bank, about $12,000 of which is secured by second mortgage, be offset against a like amount of the $23,000 county funds deposited there at the time the bank went under. This would still leave some 17,000 to Be made good to the bondsmen or by Nichols. Under this agreement the mortgages given to secure a part of Nichols’ personal indebtedness to the bank, are to be released and the personal estates of A. and T. J. McCoy are to be released from any liability as bondsmen of Nichols. The trustee now says that he does not think all the indebtedness of Nichols to the bank can be collected, which is contrary to the inference the public would draw from that celebrated affidavit the trustee made during the closing days of the last county campaign in endeavoring to make The Democrat out a liar in this matter. From that affidavit one would infer that thia claim was as “good as old wheat in the mill,” and to now say that it probably cannot be collected or is not considered safe security, or that these second mortgages cannot be collected in full, will no doubt be surprising to the people who relied on the implied statements made for campaign purposes. This "compromise” agreement, signed by all the parties, is now in the hands of the referee and he will notify the creditors and set a date for hearing their wishes. If they vote to permit this and agree to stand $15,500 themselves of the county funds lost, of course the agreement will go through. Date for such meeting of creditors has not been set at this writing.