The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1891-09-16
A BOND REQUIRED.
Enock Must Give Bond for
$4,000.

PlaCeu unuer SUFFICIENT bond was heard
before Judge Duke yesterday morning,
and finally sustained by tho court
requiring security in the sum of $4,000
Colonel Penn, of the firm of Penn g.
Cooke, representing number of credit
ors mado the motion, and filed bill of
allegations attacking tho trustee and
charging that Grinberg e Morris had
misrepresentcd themselves as to their
financial stand ng whit n they mafe
purchases of goods.
Major Griffin, counsel for tho assign
ing firm, introduced long list of Roam.
oke business men who vouched for
Arthur ELo ks busine. ability. Among
them was Hon. Ii. S. Trout.
Colonel Penn attacked the second
cause in the assignment, in which all
bonds OF notes which are outstanding
or due, or likely to become due. shall be
received and settled by the trustee.
This" Colonel Penn said, lis too in
definite for the satisfaction Of the cred
itors."
He stated that the store at Knoxville,
which had been assigned, contained
only $4,000 worth Of goods, and that
the stock in the store at Roanoke
had been estimated at but $50,
Stocks of goods had been purchased
from firms who were mentioned, and
from those not mentioned, aggregating
100000. Grinberg & Morris claim to
have sold largely of these goods, yet
they make no exhibit of the cash. His
clients desired sufficient protection,
and he asked that the trustee be re-
CURED to give bond in tho sum of
S15O,OO0.
Col. IIansbrough, OF tho firm of Hans
brough ~ Williams, representing Porter
brothers IL Company, of New York,
presented Statement: sworn to by
Grinberg 81 Morris last January, in
which they placed their total assets at
something over $4,000. 1t was through
this statement and a subsequent one Of
later date, in which the figures do not
materially vary, that this firm was
enabled to purchase large stocks of
goods from New York firms which he
represented.
Several times Judge Duke informed
counsel that this was only motion re-
curing the trustee to give bond, and
that they must cOniine themselves to
the question, but finally allowed them
to go on, and so tho spectators heard
another statement read.
Major Griffin argued that tho intro
duction of this letter, which had been
written by an irresponsible clerk, had
no bearing on tho question before tho
court.
This letter was dated last June, and
purportcd to set forth tho financial
standing of tho firm in glowing colors.
1t was directed to Porter Bros. & Co
The court held that the trustee should
not be required to give bond on account
of false statement by a clerk, and
hence ruled it out
j. Allen Watts and T. w. Miller,
who represented preferred creditors and
others less fortunate, argued that
should Encck be required to give a
moderate bond it would be acceptable.
They did not believe it would be Justice
to freeze out the trustee mentioned in
the assignment by requiring him to give
bond beyond all reason.
Capt. Berk elcy, representing a largo
number OF creditors, asked thatappr lis-
ers be appointed to take an invoice of
the stock and report the same to the
court before the trustee was allowed to
handle, dispose or even take charge of
the store. 6 seemed perfectly natural
that tho preferred creditors should be
satisfied. lie wanted protection for the
creditors from whom the firm Of Grin
berg ~ Morris had obtained goods by
means of false prctenses.
Major Griffin called the attention of
the court to the bills filed by creditors
attacking the trustee, when the as
signors had introduced guarantee that
the trustee was good
Colonel Penn argued that the cred-
tors did not know the value of the goods
in the trustees hands. The whole
transaction showed that something was
wrong. 1t looked like disposition to
cloak and conceal the real intentions
and objects Of the firm.
Enock was man of small pecuniary
means. An affidavit had been intro
duced to that effect.
The court held that the creditors must
be protected. lie had paid no attention
to statements charging fraud. That was
question outside of the motion before
the court. He required Enock, the trus-
tee, to give bond in tho sum of SSO,G0
and stated that he would receive the
bond and give tho matter the necessary
attention this morning.