St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-06-29
A RECEIVER APPOINTED.
Woes ofW. B. Clark and His In.
vestment Company.

woes OF w. b. Oldfk anu Ills LII
vestment Company.
In the district court yesterday Judge
Smith granted the petition for the ap-
pointment of a receiver for the w. B.
Clark Investment company, and desig-
mated the Minneapolis Trust company
to act in that capacity. The ap-
plication for a receiver was made,
it will be remembered, by E. H. Clapp.
of Philadelphia, who alleged that
Truman E. Penney, secretary, and
Frank E. ii. Bruen, treasurer. had USED
certain funds of the Clark Investment
company to meet paper for which they,
were personally liable; had represented
worthless notes to Eastern members OF
the company who furnished money to
be loaded as ''gilt edged, "and now have
control of the affairs OF the company 10
the exclusion of other members.
Yesterday the answer to these
charges was read in court
in the form of affidavits made
by the defendants. That of defendant
Bruen sets forth in detail the story OK
the company's trouble from the defend
ants standpoint. He denies that ne
ever has confederated with defendant
Penny or any one else to enrich him
self at the expense of the company,
either in respect to the capital, business
credit or standing. He alleges that by
reason of the neglect of w. b. Clark to
perform his duties as a director
of the company that the manage
ment has devolved upon himself
and Penny. The affidavit goes
on to state that the real estate and mort
gage loan business, established by W.B.
Clark some five yeaas ago was turned
over to the investment company Tor
which receiver is asked. Feb. 10,
1888. the subscriptions to the capital
stock being small sums secured by
Clark from persons not residents OF
Minnesota, amounting to $50, COY, upon
fraudulent representations as to his Dusl-
ness, which was then not only lns0lyent
but rotten because of his mismanage-
ment. AS to this loan Dusl-
ness which was involced when
the company was organized, at
$50. 900 in stock, and for the goodwill OF
which $50. 900 in stock was issued to
him by himself without authority In ad-
dition, which was supposed to repre-
sent $4,000 in cash or an equivalent,
Brown alleges Clark turned over notes
and securities the face value OF which
aggregated $50, 900, but which in reality
were not worth more than $25, O00. In
proof of this list of these securities is
given, the first claim on the list be-
ing $4,000, an amount which had
been embeZZled, it is alleged
by an agent of Clark's, a worthless &C
count which was turned in at par to-
gether with other worthless claims
against lnsolvent firms and individuals,
amounting in all to over $4,000. COM
prising claims, for instance, against
Beede & Bray and Bliss & Elliott. who
failed in business before the investment
company came into existence. 1t is
stated further that since the defendants
became officers of the company they
have succeeded in reducing the lndebt-
edness of the concern from $4,000 to
$4,000. Defendant Bruen was acting
under instructions of committee APP
pointed at meeting of stockholders
which represented the entire capital
stock, with the exception of about one
hundred shares out OF 1880, and was IN
up the business as economically
as possible, which he has been doing
until interrupted by MesSrs. Clapp and
Clark. The answer states in regard to
the plaintiff Clapp, that he is vice
president of loan company doing buslr
ness at Madison, S. D., and that his
chief object in applying for the appoint
ment of receiver is to be able to secure
for his company as many as possible of
the loans in South Dakota now COLI
trolled by the defendant company, and
does not care whether the claims OF
creditors against the investment conf
pany are paid or not.
After the reading of the complaint
and answer, Capt. Cross, attorney for
the plaintiff Clapp, moved for a con-
tinuance. This was denied, and the
Minneapolis Trust was appointed as
the receiver at the request Of the at
torneys representing the creditors.
Those familiar with the affairs of the
investment company state that the as
sets are sufficient to pay off the direct
liabilities, amounting to about $4,000,
but it is doubtful if anything will be
left for the Eastern stockholders after
this is done.