Owl drug back in original hands 2 1933
OF LEASES (Continued from Pags One) cedure to have a closed bank active a* a receiver, Edler admitted It and that he had given much to the question Â«t the time, but "that was the way we did It." Edler said he was appointed trustee, ending the receivership, on November 22, 1933, and qualified Â»ix dÂ»ys later, posting $500,000 bond. STOCK SETIT Neblett asked Edler about the setup of the Owl Drug Company, the trustee hunted vainly through his brief case for the answer, while Neblett made caustic comment. Edler finally was forced to call upon reta-y In the audience, v/ho said was $4,000,000 in common stock $6000,000 In. preferrjd stock Edler said Dr j, Inc, owned all the common stock, but that the preferred stock was widely scattered among investors. He did not know how many, but said the number been greatly reduced since the exchange exchange of the old preferred shares Drug, Inc . which he lid had itself since been dissolved. "What provision have you made for the preferred stockholders' 1 " Neb' lett asked. FOIR MILLIONS IS CL\1MS "None," said Edler "I took over the propel ty for the benefit of ors. When the pioperty was sold was reduced to cash which Is on now " Regarding the creditors, Elder said the bankruptcy schedule showed roughly $4,000 000 in claims The claims filed, he said amounted to about $14,000.000 which by shifting and eliminating had been reduced around $10000,000. He said $590,000 In merchandise claims had been ' proved, but had not been paid though he still had aiout $1,500,000 from ths sale of assets to satisfy claims In the "sale to the Union Holding Company now the Owl Drug Co. Elder said he understood the United Drug Co put up the money. testimony had explained that, United Drug Co. Louis K. Liggett, Owl Co. Absorbent Cotton Co, Seamless Rubber Co., and others, all were sldlarles of Drug, Inc. It was at point that questions brought out that the present owners of Owl Co. Â»ere the same aÂ» those who controlled Owl Drug Co. bankrupt. 'CLAIMS PtBLIC HELD BAG The witness also said that the owners of the common stock of Drug Co. probably paid nothing It--"It vv-as in the nature of a pro motion' --but added he had no of the company's stock transactions prior to the bankruptcy, and no definite information regarding them said he vvas of the opinion that $3,000 000 company had been built from the $6,000,000 leceived from of the preferred stock, plus earnings "Those who owned the Owl Co let the public hold the bag," mented Senator Herbert dryly Regarding testimony that he had been auditor for tne closed Wingfield banks In Nevada Elder said he never been an officer of any of the banks until he was named special trust officer In the Owl case but he had, as an accountant, done work for them. FEES ARE REPEALED The Bank of Nevada Savings Trust Company. Elder testified, re celved $2300 for Its services as receiver receiver in Nevada and $5000 as in northern California Out of this, he said, he was paid $5000 there has been no dividend to Itors, he has had no fee yet as He testified the .inclllary receiver in Los Angeles, Hubert Loughran, received $12,500 and his attorneys $15,000 in fees for the fifty-two days receivership there lasted. Ancillary receiver S. A. McAllister and his torney, in Portland, Ore., received about $4000, Elder said. At the request of the committee, Elder promised to furnish a table showing the directorates of the various various related Ov.1 companies, which Neblett said he would complete a table showing the directorates of the Interested Eastern companies.