, 1873-03-02
MuNN AND SCOTT.
The Assignces' Version Of the Hoyt.
Armour Transactions--.Chancery
Resorted to, to 4Annul the
$350,000 Mortgage.
Cause Stated for Transferring the Property to the
Assignces.-Thc Bark Rents and Profts,
Amounting to 100000 Per
Annlm, Demanded.

Amounting to $lo0, 900 Per
annum, Demanded.
bill vas fled in the United Staten Circuit
| Court, yesterday, by the Asaigneea OF Mum D.
Scott, tho great bankrupt elevator firm, praying,
| for causa therein shown, decree Of the Court
transferring the title in the property held by
| Jesse Hoyt /; Co. and George Armour d TO. to
the Assignccs, and directing the repayment OF
Ill rents and profits made, by whomsoever they
! may be held, to them.
| The bill first relates how the firms Of Mum g.
Scott and Jesse 10y: l. Co. were constituted,
and proceeds to affirm lint tho latter are holders
Of seven notes of ESQ, 600 each, secured by mort
gage On the properly OF she former; ana
| that such notes and mortgage were delivered un~
| der the following circumstances: During tho
summer and autumn Of 1868, it is alleged, said
banlrupts, Ira Y. Num- and George L. Scott, in
their partnership business and by their partner
ahip name Of Mum & Scott, shipped and con-
eiened to said Jesse Hoyt l. Co.. commission
merchants, Of New York, d large quantity OF
grain and produce for storage and sale, upon
which Hoyt g. Co. made sundry advances; and
during the full OF 1868, Mum & Scott made
| drafts to very lnrgo amount upon George B.
| u
in November, 1868, said George B. Powell
! l. Co. failed, leaving outstanding and unpaid
| drafts Of the said 11unn l. Scott, to the amount
Of many thousands OF dollars; that about the
! aamo time there WIS heavy fall in the price OF
grain and produce; TINT Jesse Hoyt Co. be-
lieyes, the following December, TINT this fall
| had been go great that the grain IN store and IN
| transitu belonging to scid Mum D. Scott, at tho
current market rntes, would so II insufficient M @ * to
yances mado by them; that Mum D. Scott we're
at that particular period unable to take up their
said drafts upon George B. Powell q 60. OF TO
make good in money the said Losses by depro-
ciation on their eaid grain and produce;
that thereupon Ira !. Mum, acting for
Munn 4 Scott, applied to Jesse Hoyt Co: to
| advance funds to take up the aforesaid drafts,
md as security therefor. ns well as to secure
made mud which might thereafter ensue, by rear
son Of continued or further depreciation, said
Mum J. Scott proposed to give their notes for
2350, 900, secured By mortgage on the prem.
iEas and real estate so often mentioned, Az OF
which was duly ACCOMPLISHED. Further. that at
the time OF the making Of this mortgage tho
amount OF indebtedness was uncertain, and con-
tineent on tho fuctuation in the New York mar
indefinite aad unnscertained Indebtedness,
nnd tho entire arrangement made with
intent to give preference to said jesse Hoyt d
Co among the creditors Of Munn = scott. ::
|
Scott and Jesse Hovt. That eaid jesse Hoyt
shnnld receive said notes and mortgage aa
secret trust for tho use Of his tirm that tue
same should not be put upon record, or IN any
should be kept secret. SO that the credit and
standing of tho said Mum l. Scott should not
be Injured in the commercial world; and go that,
bY lapse Of time, the said securities might
| rinen and become absolute, and be be-
vand the reach and interference Of the
| i1nsecnred creditors OF the eaid Mum d Scott IN
bankruptcy, and SO that said Mum d scott
might continue to be in appearance the owners
in Zee Of all Of said roal estate iree sna eoaF & o.
ceiye the then existing creditors Of eaid alnnn q
Scott, some Of whose claims sre still outstand-
: ing aud unsettled that the secret WAS so kept
Tor two years, namely 70 sne ~ 4,o ~ beRas1
rate of interest allowed is Z per cent, ana i me
taking Of security for q larger sum than the
debt Tor which it is given is prohibited, bolh OF
tho tho complainants Charge that tho said
| notes and mortgage are void II the
: excessive interest alone amounting to 51o.5W.
, Furthor. that said Mum d Scott remained in
actual possession OF the estate Ilon "a e4e te
) giving said mortgage up to Sept. a. ls72i and I'd
fhat Hoyt claims no payment vas over mado ny
> MUM L Scott on account Of said indebtedness,
l but the comp1ainants charge that large SUMS OF
money have been so paid.
Alter etating the manner in which the firm o1
Geo, Armour & Co. obtained possession, By
sereenent With other firms Of the elevators and
business property Of Mum Scott and othess
how n un1 55sn SCOTS e ERoy Rone c
! now held BY them as on behalf Of tha'
titm. firm ~ the c Gcomplainants proceed to repre-,
! sent that the use and possession o
property worth sao2o PeI abond be
over to the general creditors Of tho estate o.
said Mum & Scott, as the same becomes ouo ,
and that such agreement between armour d