The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-03-16
GRlEENLEAF. NORRIS & CO.
Efforts for the Removal of Assignee
Chamberlain.
AN AGENTS PETITION.
Judge Larremore Grants an Or
der to Show Cause.

JQCJS S&IdAAso ceAA ~
der to Show Cause.
Tho affairs of Greeniear Norris Co., the bankrupt
brokers, it would seem from new developments Will
be for some time come source OF fruitful Ntisa-
ton the II will be remembered that ut tho
time of their failure, about three weeks ago. Mr.
Selah Chamberlain was appointed receiver Of tho
assets OF the nrm, apparently with the approval ana
consent OF Mr. Warren E. Grcenleaf, the
sole surviving member thereof. This appoint
ment was made In tho suit brought by
Mr.. Chamberlain against Greenleaf, Norris & Co. to
$500 900 worth OF securities, ana At the
time was evidently satisfactory to the creditors.
1t would now seem. however, that some of the
creditors are not entirely pleased with Mr. Cham
berlain's appointment as was formerly supposed In
the Special Term of the Court Of Common Pleas yes
terday Messrs. Sewell Pierce, on behalf OF
Francis G. Saltonstall made an application to Judge
Larremore Tor an order to show cause why the re-
ceiver should not be removed ind some other and
more impartial person appointed In his place.
AR sALToNsTALL's PETITION
The petition OF Mr.. Satonstan Is a somewhat volum-
nous document covering some twenty PAGES oil closely
written manuscript He states substantially that tho
firm for many years engaged In the business OF
brokers' all the members Of the firm being men,
bsrs of the Stock Exchange, and having largo bust
and extensive credit uron such Stock Exchange;
principal part of the business Of the hrm the
purchase and OF securities the Stock Exchange
for persons who desired to enter into speculative
transactions This business conducted by the
deposit OF q margin with the hrm security for
the transactions; that when customer ordered the
firm to buy stock for MIN the firm bought the
stock In their name. and advanced the necessary
money to purchase the same over and above the mar
gin deposited ny the customer; that II was then the
habit OF the trm to procure the moneys with which TO
conduct Its business by the hypothecatioa OF the
stocks purchased tor account oil said firms GUS
customers and was ordinary part OF the business
OF the Stock Exchange In such transactons that III
October 1915 Gresnlea Morr's Co.' 1esirans 70 ex
their business with their ofnce there by means
OF telegraphic messages transmitted from Office to
Office; that for the purpose OF such business a
might be transmitted from the Chicago office
operators and The petitioner states further
that the past ten years ne has been member Of
the Stock Exchange and is experienced in the stock
business that he entered into an arrangement with
took charge their Office In Chicago, all the business
Of office being transacted under his direction and
ne so p Ss large
sums OF money Tor margins upon such purchases;
that he transmitted the money and orders TO Green
transferred large sums OF money, amounting IN the
aggregate $500 o0 and has transmitted orders
sAS~s'>~~
- ALLEGED UNLAWFUL PREFERENCE
The petitioner then details the death Of Mr. John
B. Norris and Augustus w. Greenleai, members OF the
nrm as stated In the complaint IN the suit and goes
recever of the assets of the ar aud says upon
representations made ~ Mr.. Chamberlain ME- warren
Greenlcat was induced 70 consent 70 ns appointment;
but the petitioner charges that Mr. Chamberlain
brought the action for the i0eQuitsble, unjust and
unlawful purpose OF having himself appointed as sucn
recover aud tor the purpose OF taking undue al
vantage OF his position RECOVER, to Ills own gain
and to obtain prefcrenco OF mis- debts out oi lne
assets and above the preference he was
creditors interested therein The petitioner further
charges tina. undue advantage taken Of tho SIT.
uation of Warren 4. Greenleaf upon the LIST Of
March, tho atter's dead father ~ the limo being un-
buried. the household overwhelmed with grief and
stunned by tho terrible visitation of Providence in
the death OF the husband and iather Ae goes on 10
say that warron was actually beside himself with
grief and did not know what he was doing, and that
Chamberlain took advantage Of his unfortunate con-
dltion In order TO lnduce him TO consent 70 the APP
pontment Of said Chamberlain such receiver
that Warren would never have consented to such APP
poin tmeut were he In his ordinary condition Of
mind, and that he now regrets having consented 10
such appointment and desires the revocation there
OIL The petitioner then says that Chamherlain's
claim the complaint Is tho right 10 OBTAIN
amounting to about $500 900 payment by
HIM 1892 100 advances, anu that Ms claim was no
different IRON that OF other customers Of Inc mousse
and OF the Chicago branch represented by the petit.
toner; that truth Chamoerain's claim occurred IN
a very different way Chamberlain was operating to
a very large amount in Western securities. Green-
IeaL Norris L. Co. became involved IN the prevalent
financial difficulties and suspended temporarily. Had
they then gore liquidation the securities carried
by them for Chamberlain have been sold III panic
prices ut enormous loss 10 MIN ana 10 tnem
10 avert such loss It necessary that they should
resume and to enable them 10 do so Chamberlain de-
hvercd 10 Thorn about S250,0O0 worth oil securities
with intent that they should use them ior that
purpose and co ntnue carry his stocks. 1t was un
derstood that those securities were lent TO the hrm
and no. deposited as margins; that the loss occa-
stoned by such suspension fell upon the urn and not
upon Chant erlan that since Their resumption they
have purchased for him upon the securities formerly
lent by him. no Is entitled 10 the possession OF
those securities upon pay Of the amounts charged
against them.
The petitioner iurther states that appears that he
ia indebted Tor himself aud as agent Tor Others In
large um and that he is entitled to have delivered to
him a lara Q amount oil securities on the payment of
said Indebtedness, which DO IL ready ana Wiling 10
pay: that Cham refused to give an account
10 the petitioner other credtors has evaded their
nouiries respecting the condition OF the concern and
the petitioner believes that his refusal TO give said IN
formation 10 part OF his general plan to defeat the
rights OF other crcditors petitioner says he has
used every In his power 10 faciiitatc The settle
ment OF nls Affairs ana CHAINS u nn non .ha
securities is limited 10 claim Of the money value
thereof and thus It would appear that Chamberlain is
not an Indifferent person between the paros In this
case and therefore not proper person to be re-
ceivcr, and his appointment was obtained by holding
back from the Court his true status respecting tho
estate that he resides ut Cleveland ONO and since
his has absented himself from the State,
there pressing need OF his presence here.
His business, petitioner iurhe says is that OF rail-
| road contractor, and he hus experience IN tho
OF STOCK brokerage, anu therefore CANNOT
properIy discharge his duties recover winch
duties require the constant personal attention OF
| competent man, thoroughly acquainted with such
| business.
A RECEIVER WANTED
Mr. Saltonstal upon this alleged iuct therefore prays
the Court to admitted party defendant to the
action on his own behalf and behalf OF all persons
Interested as customers at the Chicago agency. He
aso ms ks that tho Judgment be- vacated ana Chamber
Ians appointm ent us receiver be aside and
other person appointed In his place who resides within
tho Jurisdiction OF tho Court ana Is indifferent between
ttaat INT ted. "A
cause why this should not BIO done with stay oil pro-
| ceegipgs meanwhile
AN SHOW CAUSE.
The application was supported by the afldavts Of
| James H. Oiiphani, Perry H. smith and William B.
| IN the petition.
Upon tho facts set forth IN the petition Judge