The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1889-08-14
A SLAP AT JUDGE WOODS
DELIVERED WITH VIeoR BY GRESHAM.
The Order For Receiver For the l., ID. &
W. Set Aside After a Generous Tongue
LashinG to the Attorney
And the Court.


of suit in the U. s. court yesterday, but it
was the title of an action. Judge Gresham,
who had so quietly slipped into town Sunday
afternoon, appeared in the .. 5. court room
about 10 clock yesterday morning. Inasmuch
as he had announced when last here that he
would not be back until September, there were
many surmises as to the object of his unex-
pected visit. 1t soon became apparent when
the attorneys connected with the l., d. q W.
receivership case followed him into the court
room. 1t will be remembered that on Thurs
day last Judge Woods OF the federal court
made order appointing r. B. F. Peirce re-
ceiver of the I.,D & w. road. The action ap-
peared to have encountered little opposition
and therefore attracted little atten-
ton although there was some sur
prise that Mr.. Peirce, one of the trustees of the
road, should be appointed as receiver. Judge
Gresham, who has the credit of examining into
cases OF this kind before he takes final action
upon them, had evidently smelt large-sized
rodent and came all the way to Indianapolis to
investigate it
Among the spectators in the court room yes
terday morning, besides Mr.. Peirce. the newly
appointed receiver, and the various attorneys
connected in one way or another with the case,
was Judge Woods. With the latter Judge
Gresham engaged in earnest conversation Tor
some minutes before the court was called 20
order and it was evident from the manner OF
the two that the subject under discussion was
one in which they differed widely. Judge
Woods face wore an expression OF anger when
Judge Gresham advanced to the bench and
announced his intention to set aside the ap-
poIntment of a receiver in the case OF the l., ID.
4 w. railroad.
~ -; NJ rod nd
of the attorneys looked uncomfortable. Judge
Gresham had the order prepared, but before
handing il over to the clerk he proceeded to
ask few questions in the matter, beginning
with Mr.. Peirce.
"Is it not fact" said he, "that the road IS
insolvent, and always has been%'
Mr.. Peirce did not think il had.
"The first mortgage amounts to about =, ,OOO,-
600. Could the road be sold for principal and
interest now" asked the judge.
II believe it could" said Mr.. Peirce.
"Do you mean to say that you could make
such sale now?'
Mr.. Peirce did not know of any one who
wanted to become a purchaser. Then Judge
Gresham asked what the Indebtedness of the
road amounted to.
Mr.. Peirce replied, 100000"
"What are the average earnings Of the road
per month";" asked the Judge
about $350 000," replied Mr. Peirce.
And what the operating expenses
"A
'The road then has been making about S1O,-
600 per month. What has been done with this
money!
One or two of the attorneys, as well as Mr.
Peirce, attempted to answer this question. Mr..
Peirce got the floor and explained that the
earnings had been applied to paying coupons
and running expenses.
Yes" said the Judge, you have been pay
ing off coupons oil the mortgage bonds instead
of meeting the running expenses. This money
a huN~a hGarn nav dc a. Inc
contracted for labor and supplies. You have
been paying the bondholders and allowing the
unsecured creditors to CO."
Things were getting more and more uncom-
Portable for almost everybody in the court
room outside of the able jurist who sat upon
the bench, and who next began to ask some
questions about the proceeding which had been
brought for the appointment of a receiver.
'This is an unusual proceeding" said he. II
have never seen one like it. There
is no controversy in the case. Mr.. Peirce
seems to be working in harmony with the
plaintiff. Evidently the only reason he was
put on the other side of this case was to give
this court jurisdiction" This awful slap at
Judge Woods drew out denial from one or
two attorneys. Judge Gresham then stated
very bluntly that he believed the action had
been taken to avoid paying off the indebted
ness for labor and supplies.
"What is to become OF this indebtedness"
said he.
Mr.. Helrce SalQ ne supposed IL Woul0 nave 10
be paid, but did not know how He thought
the bondholders were willing for it to be paid.
Then the wind-up, in which Judge
Gresham gave some very plain advice: IF the
bOndhOlders mean TO pay OF the indebted
ness" said he, they ought to come here and
pay it over. There is no reason for appointing
a receiver, when the road is paying expenses,
unless some ones interests are not being OBJ
served. The bondholders do not need their in
terest protected, and this court will never APP
point receiver unless there is good reason for
it." To Mr.. Peirce Judge Gresham then said:
"You are not a fit person to be made receiver
of this road The receiver must be disnter-
ested and independent party. You have been
paying these bondholders in preference to un-
secured debtors"
This brought the proceedings TO a close, and
Mr.. Peirce, Judge Woods and the attorneys left
the room in very i'll humor. Judge Gresham's
order was made in the following words:
Circuit Court of the L. S. District Of Indiana
Benjamin A. Sand VS.. the l., D. q S. railway CONF
Come the parties by their counsel, and the court
being advised il the premises OF its motion, sets
aside cancels and annus the order entered herein
the Sth day of August, 1882 appointing Robert b.
f. Peirce receiver of the property described in the
bin OF complaint and the mortgage sought to be
foreclosed and il is further ordered that said
ceiver restore possession of said property to the
party parties from whom he received the same,
together with any moneys that may have come into
his possession since his appointment And the COM
plainant is given leave to amend his blll herein.
Aug. II, 1889 W. q. GRESHAM.
The proceeding was the occasion of great
deal OF comment among attorneys yesterday
afternoon. The stories of the ill-feeling be-
tween Judges Gresham and Woods were re-
vived, and even little of the old Harrison
Gresham antipathy crept to the surface 1t
was admitted on all sides that Judge Gresham's
action was a severe comment on the character
and ability of Judge Woods, and the friends of
the latter were very angry.
They were not alone in this feeling, which
was shared by the attorneys of Mr. Peirce and
the l., d. & W. railroad One Of the latter de-
clared that nobody but Judge Gresham saw
anything wrong in the appointment of Peirce
as receiver THE bondholders, trustees, cred.
itors and company were all in favor Of this
proceeding" said ne.
AFifty Per Cent. Reduction.