Rensselaer Semi-Weekly Republican, Volume 36, Number 80, Rensselaer, Jasper County, 31 May 1904 — Babcock & Hopkins Matters [ARTICLE]

Babcock & Hopkins Matters

A Very Promising Method Agreed Upon for Their Adjustment. There is every reason to believe that there is no longer any danger of our big and enterprising grain firm Babcock & Hopkins being force! into bankruptcy, as a result of the failure of the McCoy Bank Action has been begun, before Judge Hanley, that practically insures to all the creditors an eventual full settlement of all their just claims, and which will permit this popular firm to continue in business. The action to be taken contemplates, in brief, the turning over of the entire business and property of the firm, to a corporation organized expressly to hold it, and which will hold it in trust for the equal benefit of all the creditors, and will lease it to the present owners, and who will pay a large rental every year, and said rental to be applied to the payment of all the debts, pro rata. The state of the affairs of the firm, as shown by a petition filed before Judge Hanley, by J. H. Chapman, assignee of the McCoy Bank, are about as follows: The firm owes the bank trustee in notes and overdrafts, $10,681.56. It also owes other notes given to A McCoy & Co , to the amount of $11,199.21, which notes are held by the Central Trust Company of Chicago. To to the State Bank of Rensselaer, it owes SIO,OOO, secured by mortgage on the elevator at Rensselaer. To the First National Bank, of Lafayette, it owes $3,417.91, unsecured. Total of debts $35,298.68. The firm owns, besides the big and finely built elevator at Rensselaer, three smaller ones at different points on the Monon railroad

The petition addressed to Judge Hanley sets forth that certain of the unsecured creditors are threatning to throw the firm into bankruptcy, in order that they may have an equal standing with the First National Bank of Rensselaer, and other secured creditors. It is further set forth that if this step is taken, and the property be thus sold at forced sale, and at great expense, that none of the creditors will realize nearly the full amounts of their claims. Whereas, if the property be placed in the hands of a corporation to hold in trust, and be leased to the present owners, all claims will eventually be paid in full. A further reason why some such step is necessary, is because all reliable insurance companies will refuse to insure the elevators any longer, if the mortgages against them are not released. The First National Bank of Rensselaer, the only creditor holding such a mortgage, agrees to cancel and release it, when this proposed transfer to a corporation is made.

The proposed directors of the corporation, are Jesse E. Wilson, G. A. Williams, Emory B. Sellers, Judson J. Ehint and B. F. Fendig. A trustee will be selected to hold the property, under the corporation, but who is not yet fully decided upon. The rental offered by the pnsent firm is $6,500 per year, the first year and $7,000 per year thereafter.