In re Fayetteville Wagon-Wood & Lumber Co.

• Decision Date: 13 July 1912
• Citation: 197 F. 180
• Parties: In re FAYETTEVILLE WAGON-WOOD & LUMBER CO.
• Court: U.S. District Court — Western District of Arkansas

197 F. 180

In re FAYETTEVILLE WAGON-WOOD & LUMBER CO.

United States District Court, W.D. Arkansas, Fort Smith Division.

July 13, 1912

E. B Wall, of Fayetteville, Ark., for trustee.

Read &amp McDonough, of Ft. Smith, Ark., for New Paddock-Hawley Company.

YOUMANS District Judge.

The petition of the trustee is as follows:

'Comes now W.W. Key, as trustee in bankruptcy for the Fayetteville Wagon-Wood & Lumber Company, a bankrupt, and files this his application for an order to sell certain assets of said bankrupt, and, in support of said application, says: That among other assets, as shown by the inventory and reports heretofore filed, there are certain buildings, and real estate and machinery and stock, constituting the plant of the company, and located at Fayetteville, Ark.; also certain real estate and buildings located at Alpena, Ark.; and also certain real estate located in Carroll county, Ark., consisting of land originally purchased for timber purposes. That the said plant, with special reference to machinery, as well as to the stock of wagon-wood and other material now on hand, is depreciating in value; that said plant, by reason of same not being operated, is depreciating in value; that the stock of wagon-wood and other material now on hand cannot be sold, at an adequate price, to the wholesale trade, for the reason that the stock is broken, and it is impossible to fill orders, except by operating the plant and buying some additional material. That the plant, including the stock on hand, can be sold to the best advantage as a whole. That to sell the stock separately would be to sacrifice a large per cent. of its value, and that the same would be measurably true in regard to the machinery and real estate, if sold separately. That, as shown by the records, there is now pending in the District Court of the United States for the Western District of Arkansas, Ft. Smith Division, a suit to foreclose upon an alleged bonded indebtedness; said suit having been filed in said court in behalf of the New Paddock-Hawley Company, of Omaha, Neb. That to attempt to sell the said real estate, machinery, and stock, subject to the lien, or claim of lien, of said bonds, would be futile. That the only manner in which an adequate price for said real estate, machinery, and stock could be realized at any sale, whether public or private, would be to sell same as a whole, and free and clear from any and all liens or incumbrances. That the claim of the said New Paddock-Hawley Company is being contested by this trustee, and that, in all reasonable probability, the said litigation will consume months of time, with the possibility of still further delay by reason of appeal from the action of the said court. That during such period of delay the said machinery and stock will continue to depreciate in value, and the salable value of the plant, as a whole, will likewise depreciate to a greater or less extent. That, in view of the facts stated and conditions

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