Jasper County Democrat, Volume 11, Number 5, Rensselaer, Jasper County, 2 May 1908 — INDIANAPOLIS STAR IS BROKE. [ARTICLE]

INDIANAPOLIS STAR IS BROKE.

The Chain of “Star” Papers In the Hands of a Receiver. Thursday’s Indianapolis News: George C. Hitt was to-ady appointed by Judge Anderson, of the Federal Court, receiver for the Star Publishing Company, publishers of the Indianapolis Star, the Muncie Star and the Terre Haute Star. The appointment was made on the petition of Daniel G. Reid, of New York, who alleges that he is a creditor of the Star Publishing Company to the extent of $221,703 for money loaned to the concern and which is due and unpaid. The bond of the receiver was fixed by the court at SIOO,OOO. The Western Trust and Savings Bank and the American Trust and Savings Company, both of Chicago, are made defendants to the action because they are trustees of bond lssues of the company. It had been the desire Z)f the petitioner to have A. A.,-McCormick, editor and publisher of the Indianapolis Star, made receiver, but the custom of Judge Anderson is not to appoint as receiver an officer of the company affepted. Reid alleges in his petition that he lent the Star Publishing Company $249,749.65, for which the company gave him its promisory note. April 4, 1908, $29,108.79 was paid on this note, leaving a balance due of the amount sued for. He alleges that the Star Publishing Company has at all times been without working capital, and that it still has no working capital .except what is furnished by him. \ He alleges that the defendant company is not making enough ont of its busines to meet its current operating expenses and the interest on its bonds, a large amount of which is held by Reid. It is alleged that the Indianapolis Star has lost SIOO,OOO to date, and $50,000 in bonds come due next month with no money to pay them. The petition prays that an accounting be had and that the property of the company, including all three papers and their plants, franchises and rights, be sold as an entirety and the proceds of such sale be devoted to the payment .of the claims of Reid and of such other creditors as may intervene in this action. A. A. McCormick said to-day that the debt leading to the receivership was an old one. The company had owed money on a demand note to Mr. Reid from the time of its organisation. The .demand for the payment could not be met, and the proceeding followed.