The Daily Tombstone., 1885-09-04
TELEGRAPHiC
Calling Henry 70 Account

stSpofSdct Suit III cbbnccFv III tn0 Ni- fled States District Coart against Ti.a. odpre Henry and the Colorado Loan sni Trust Company. The complaint says that tie insurance comrapy A, E for the past five years invested large sums of money in Kansas Gnl Cobra do upon bond aud mortgage collateral largely through T. c. Henry and the Colorado Loan and Trust Company. Previous to coming to Colorado Mr. Henry's ofiics was at Abilene, Kansas There MT. Henry bought large acts of land, on which he raised wheat the money being furnished by the Travellers Company. Tn 1883 Mr. Henry moved 10 Colorado, and the in surance company extended it's invest ment business to this State. MT. Henry organized and incorporated the the Colorado Loan and Trust ComDany of which he was the lead officer. For the half million. Gellars or more which the Travellers Company invested in Colorado through MT. Henry the com, pany has taken as colleterial the rro missory notes of borrowers and sec-red by deeds of trust company acted as trustees The company files sche- dule of the loans thus made, and states that the notes by the severa! deeds of trust described in the schedule, amount ing to about s5OO0.OOO are still un- pald. A large number arc past due, and Oth ITS are falling due almost daily Because of unsatisfactory conduct on the part of Henry the insurance con- psny in May 1885, notified the Colo rado Trust Company to cease acting as it's agent, and notified ali makers of prornissory notes and the grantees named in the deeds of trust that they should make no further payments to Heary or the trust company kent on aad are endesvorins to collect the amounts of money due. l. is alleged that Henry has been guilty of gross Irregularities as trustee, having re c:eved large sums of money from thr insurance company to be paid oyer to borrowers by him and instead of doing 80 1t is charged he appropriated the money to lis own use. In numerous instances it is said Henry has collected principal and interest on notes and retalncd the money. failing to rep,rt the transaction at the home ofice. An example case cited IS that oi John Sheldon of For. Collins who borrowed sl5,0OO from the Travellers Company The money was sent to the Trust Com psny and Henry IS charged with fail ing to pay the money to Sheldon out save us credit and shield Henry from criminal prosecution the Travellers Company has advanced large sums of money 8 second time to la paid to parties who had negotiated loans through the Trust Company. Henry promised to reform his business me thods and in this way got the company further into his tolls. When AIr. Henry was at Abilene the company charges that he collected and misaJ- instead applying the money to his own use. To save Henry from criminal prosecution the insurance co mpany re- turned the note and deed of trust to Sheldon. The misappropriation re- mains unpaid. Numerous similar ;ases are cited. The Travellers Con- ,any then states tha. it's business has ,scome embarrassed and its credit im- ,sirsd by these fraudlent acts. The omplaint also says that in order to lied the company's flu .ds to he extent S6O.0O0 and that since in Colorado yer $40, 900 Las been lost. The Col rado Loan and Trust c ompauy is al 'ged to be hopelrssly insolven., whi'e l 1s indsbtness of Henry and the trust ,mpany amounts to several hundred |