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52:22; ECBiLéHMAN
$333133 Z'fl’EVN'SST July 18: 1931-
Mr. Joseph D. Harkins, ‘
Attorney at law, '
Prestonsburg, Ky.
Dear Sir:
Re: The Guardian Trust Company
vs. By-Products Coal Company

I acknowledge receipt of yours of the 16th with enclosure.

As to the three party agreement, it is my recollection that
on the day you were here it was agreed in conferences at The Guardian
Trust Company, in Mr. Shepherd's office, that the next move was for
the By-Products Coal Company to come to the Bank with a prospective
purchaser, with a plan for raising the required future working capital
in the sum.of about $40,000., and with a request to accede to the
proposition made by The Elkhorn Coal Company. We felt that it was
their move, meaning Mr. Burton, because the Elkhorn Coal Company
preposition had been conditioned upon their being able to raise the
required Working capital.

Since then Mr. Burton has been endeavoring to interest various
parties in the proposition as purchasers and his efforts to have Tr. Jacobs
inspect the mine, of which you know, have been directed to that purpose.
Those efforts not yet having culminated in success, we have not been

- approached as yet with the proposition which our conference led us to
expect. It is certainly true, however, that Tr. Burton has been doing
his best to put himself in a position to make such proposition to the

The present development, that is the filing of the Hatfield
suit, appears to me to have precipitated the matter so that the Bank
will have to decide immediately whether it can agree to the prOposed
modification of the Elkhorn Coal Company's lease and upon receipt of a
draft thereof from Mr. Howard or yourself, we will present it to the
Bank for consideration.

In the meantime, it becomes important to know within what time
the Bank must file its answer and cross petition in the case. Will you
therefore kindly advise us in that respect and also as to whether
The Guardian Trust Company, Trustee, is now in court in this case or