Use Income To Pay Debts

Proposal Made by Creditors of Neil Phelps

Will Pay His Board

Agreement Must be Signed by All the Creditors and Is For One Year

Battle Creek, Mich., Nov. 5.- The committee of five of Neil S. Phelps' creditors reported at the meeting in the sanitorium. Mr. Phelps, owing to his illness, was unable to be present. 

The committee had been appointed originally to look into the nature of Mr. Phelps' liabilities and assets, and as a result of its canvass of the situation it recommended to the creditors in general an extension of one year. To facilitate matters and to gain an exact idea of the mind of the creditors, an agreement was prepared to the effect that Mr. Phelps should, within 20 days, furnish a detailed statement of his assets, his liabilities, the time of placing securities with the banks as collateral, and for what purpose they were thus pledged. This agreement Mr. Phelps is to sign.

The document further provided that John Bailey, formerly mayor of this city and now a member of the law firm of Mechem & Bailey, shall serve as trustee or representative of the creditors. Acting with him there is to be a committee consisting of Milo D. Campbell of Coldwater, and Lewis Anderson and A. B. Williams of Battle Creek. This agreement allows an extension of one year to Mr. Phelps on condition that it is signed by all the creditors, two months being given to obtain the signatures. 

The agreement further provides that if any of the creditors do not sign within 60 days all debts shall then be considered due and creditors shall be at liberty to proceed to make collections. 

It is the general opinion that this agreement will be of great value not alone to Mr. Phelps, but to the creditors as well, especially in view of the fact that a further provision pledges Mr. Phelps not to interest himself in any new business. He is to be allowed by Mr. Bailey and the committee acting with the latter, enough money to pay for his living and all moneys accruing to him are to go into the hands of the trustee for the creditors. 

At the meeting were about 30 creditors and representatives of creditors. The agreement was signed by representatives of the local banks and by most of the individual creditors and representatives present. It is the general belief that all the necessary signatures will be obtained. Mr. Phelps, it is said, has signed. 

In a brief address before the creditors, Mr. Campbell advised that the newspapers be represented at further meetings in order that the press reports of the entire matter might be perfectly accurate. 

A lawyer interested in the matter said this morning: "By the conditions of the agreement, Mr. Phelps is allowed two months anyway, and if it be possible for him to get about before the expiration of that time an entire change in his affairs would be no source of wonder, for he is a man of astonishing resources."