The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-12-15
Eastern Firms Commence Suit Over
a Former Well Known Living
ston Corporation.
It Is Charged That There Was
Fraud About It's Dis
solution.
The Transfers, II IL Alleged, We're for tho
Purpose OF Hindering and Delay
Ing Creditors.

A bill in equity has been filed in the
United States circnit court here by John
Pullman a Co., Goodyear Rubber Co., the
Dwight Paper Co., tho Grey Bros. Boot and
Shoe Co. the Alden Vinegar Co.. ID. =. Jaff-
ray 81 Co., seigfried " Brandstein, Geo. II.
Newell d. Co., GrigRs Copper Go. va. Charles
H. stebbins, Charles Angus and IL. I.
Smith. statutory trustees of the Carver
Mercantils company. the National Park
bank, Of Livingston, the Montana Invest
ment Co., Il. H. Talcott, Charles H. Steb.
bins and Annie q. Stebbins. The plaintiffs
allege that on Dec. %. 1890, the Carver Msr-
cnntile company filed a petition in Park
county for it's dissolution; that the de cree
was granted Jan. q. 1891, Stebbins and
Charles Angus being made the trustees to
COLLECT the assets and pay the debts it owed.
Plaintiffs claim there was due them some
thing over $4,000, and that at the time the
debts were contracted Stebbins and Angus
organized the StebDins Mercantile COM
pany for the avowed purpose of succeeding
to the business of the Carver Mercantile
company with a nominal capital Of $50, 600:
that after the organization the trustees
transferred all the goods and fixtures to
the latter company. This, it is alleged, was
lone to hinder and delay the creditors; and
that prior to the dissolution the Carver
Mercantile company decided and conveyed
all real estate to Btebbins; that the alleged
consideration was $25, 900 which tho plain
titfs claim was not paid. and was made to
defraud and for the purpose OF delaying the
collection of their claims.
The plaintiffs also allsge that afterwards
Stebbins and Angus. pretending to act az
the president and the secretary. conveyed
MI the book accounts, notes, mortgages and
judgments and credits belonging to the
Carver company, to the National Park
bank, which are said to be worth x15, 600;
that the bank collected about $4,000 and
applied the money to it's W use; that the
alleged consideration was an 0verdraft
claimed to be due from the Carver Mer-
The creditors claim that the Carver Mer-
camille company was not indebted to the
bank In any sum whatever, and that the
transfer was without consideration, but
was part of a acheme ente rod into by Steb-
bins and the officers of the bank to convert
and to hinder and delay the creditors.
Stebbins and Angus are also accused of
having failed and refused to compel the
bank to apply the sums of money collected
to the payment of the debts of the Carver
Mercantile company. It is further recited
pQHG III JauuhIys 1901, tuo Ndt1Oudl IHIh
bank became the holder of 497 shares of
the capital stock of the Stebbins Mercan-
tile company and that in an election, with
the banks agents in control, passed a reso-
luton authorizing the execution Of a chat
tel mortgage to secure seven notes of the
Stebbins Mercantile company to the bank,
a%RgreRating $4,000 together with $4,000
attorneys fees.
After the delivery of the mortgage, it is
claimed, the bank placed its cashier in
charge Of the company and still holds JOS
session of the same, and that the bank OBJ
tanned possession of the stock without con-
sideration. Upon filing the mortgage, the
plaintiffs say that Stebbins conveyed real
estate to his father for an alleged
no part of it was paid. This property, it is
said, co mprises the bulk of the real estate
belonging to the Carver Mercantile COM
pany. Other real estate ia alleged to have
been conveyed by Stebbins without .consid-
Grafton to hinder and delay the collection
of the plaintiffs claims. Some of the real
estate they claim has been conveyed by the
company, in which his son is alleged to be
a large stockholder, and that the consider
alton was purely nominal n without act
ual consideration. 7@-
The plaintiffs aleo allege that the trustees
OF the Carver Mercantile company have not
taken, and are not now taking, any steps to
prevent the alleged misappropriation of the
assets of the company, or to secure the an
plication thereof to the payment of the
claims. They also charge that Angus is
assisting the bank III disposing of the assets
and in applying them to it's alleged fraud
ulent claim. Ike plaintiffs pray for the
of a commissioner before
whom a full and true accounting of all the
property may be had, and for other equit-
ahla ralinf .- fHl .NI"r-.L