Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-08-08
A RECEIVER WANTED.
The Celebrated Library Hall Case
Again Boldly to the Front.
THE PLAINTIFFS CHARGE FRAUD.
A Spicy CrcSSBill That Makes Very Inter-
eSting Reading.
AN OFFER TO REIMBURSE BENNETT

AN UtFER III REIMBURSE BENNET,
The celebrated Library Hall case is ono
more brought prominently to the front b,
the filing of q very tart cross bill yesterda,
BY d. T. Watson and A. NJ. Neeper, attor
news for the plaintiffs, in Common Plea
Court.
The document is quite lengthy, and set
forth a complete history of the Pittsburt
Library Association and the Mercantile
Library Hall Company. 1t contains many
charges against the defendants, or a part o
them. which the public will find interesting
reading. The title of the case is the Pittsburg
Library Association, and 7. Brent -Swearin.
gen, James f. Hudson, Joseph Albree,
and William Thompson, plaintiffs, versus
the Mercantile Library Hall Company,
Joseph Horne, Durbin Horne, T Bernard
Shea and Albert P. Burchfeld, co-partners
doing business as Joseph Horne & Co.;
Richard NJ Gulick and H. N. Bennett, CO.
partners as r. NJ. Gulick s. CO., and the
Syria Temple, defendants.
MAIN POINTS OF THE BILL.
The main points contained in the cross
bill of the plaintiffs, after setting forth the
relations of the Library Association to the
Library Hall Company and the lawful
powers of each under their charters, are as
follows:
That subsequent to the first of July and
prior 10 the first of December, 1889, the
mortgage Indebtedness OF said Library Hall
Company consisted of three mortgages, as
follows: First, mortgage 10 the Shields
estate for $50 600, given to secure balance
OF purchase money unpaid for the ground
upon which the library building is erected;
second. q mortgage given 10 the Soldiers
Sanitary Home, subsequently assigned to
the Western Pennsylvania Hospital, for
500 OO0, dated June 2S, 1869, and, third, a
mortgage to William Frew, ct al, trustees,
dated April l, 1871, for the sum of $4,000,
,ron which q writ of scire facias was issued,
and Judgment recovered in the amount of
S66. SIG o.
THAT at the time of the recovery of said
Judgment there was in the treasury of said
Mercantile Library Hall Company funds
applicable TO the payment of the claim un-
der said mortgage, under said agreement of
March TO- 1871, 20 the extent of some S16,-
GOO. Upon said judgment an execution was
issued, and the property of the Hall Com
DaGy was advertised to be sold at Sheritf's
sale, and your orators, at the first sale in
September, 1889, caused notice to be given
i,r the protection of the interests of the
stockholders of said Mercantile Library
Hall Company and the interests of your
orators, The Library Association, where
upon the writ was STAYED, and at a subse-
guent term of court of 1889, the property
Was again put up al Sheriff's sale The rep
resentatives of your orators again being
present, the same was withdrawn.
THE MORTGAGE DEBT REFUNDED.
That on June %, 1890, the said NIer-
camille Library Hall Company, by the
efforts of some of its members, who are also
members of the Pittsburg Library Asso-
c!ariou, refunded the mortgage indebted
ness Of said Mercantile Library Hall Com
pauy, and issued mortgage therefor, pro-
vaiug for the payment of the mortgage of
the West Penn Hospital and to William
Frew, ct al, in 20 wears from the date
thereof and made an arrangement whereby
The first mortgage, or Shields estate mort
gage above referred TO, was to be paid in
annual installments of $1,000 each, which
agreement is not now in possession OF your
orators.
That on the 31st day of March, 1891, the
managers of the Library Hall Company, in
violation OF their agreements and trusts, re-
fused to pay the interest coupons maturing
on that day, and payable at the office Of
said Union Transfer and Trust Company,
although at that time there was more than
ample funds in their hands wherewith to
pay she same, which accrued from the rents
and revenues of said trust property, to wit,
the sum OF $4,000, and have averred it is
their intention in the future not to pay any
interest maturing on the bonds secured by
said mortgage, and your orator AYERS, with
the intent TO cause a default under said
mortgage and ieOpardize the property held
in trust for your orator.
That on the Sd day of January, 1891, the
managers of the Library Hall Company
made an agreement with your orator per-
peJgally leasing said grounds and building
10 II upon certain terms therein contained.
Among others, an agreement by the Library
Hall Company TO pay the first S5,OoO In
sraliment maturing on the Shields estate
mortgage above mentioned. AT the same
time the leases existing between the Mer-
camille Library Hall Company and the other
defendants in this crosssbil were assigned
10 your orator. Under the terms of said
consolidated mortgage the whole mortgage
debt natures, and process may be issued TO
collect the same if any installment of
interest remains unpaid for. On April 1,
1891, a senli-annual installment of interes.
amounting to 81, $50 matured, which is now
overdue and unpaid.
RENTS SAID TO BE DUE
''Io meet this the Library Association
has no funds whatever but the Library Hall
Company has in its treasury, collected from
rents Of said trust property, the sum of up
ward Of $4,000, which can, and should be,
applied TO such payment. Yet the said Ii.
brarv Hall Company, whose action in this
respect is controlled by, and in the interest
OF, the said II. NJ. Bennett, one Of the de-
PENDANTS and principal lessee of the theater
in said trust property, refuses to SO apply |
said moneys, or any part thereof, and thus
IL disregard of its duty said Library Hall |
Company, by its action, threatens and i'm |
perils the entire trust property.
'In addition TO this, the said Library |
Hall Company, by notice served and by the |
pending Of the bill in equity filed BY it, |
also prevents the collection of rents now |
due to the Library Association from said |
trust property, which, if paid, would be |
ample for the purpose of paying said in |
StallmenJ of interest now due. There is |
now due and unpaid rent from said trust |
property as follows:
''From Jos Horne & Co, two quarters
at Sl5.500 per annun n....................S 7725
"From r. NJ. GUick Il Co., two quarters
at s. 800 per annum m..................... $3.50
"Fram he Syria Temple, two quarters
at ;, 900 per annum. m..................... 800
slI,975
CONTEMPLATED FRAUD ALLEGED.