New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-11-06
THE REFEREE ENJOlNED.
FRAUD ALLEGED IN THE BUIKHALTER
ASSIGNMENT.
QUEER STORY OF AN ALLEGED MIDNIGHT
TRANSFER OF BOOK ACCOUNTS TO THE

TRANSFER OF BOOK ACCOUNTS TO THE
IRVING NATIONAL BANK.
Judge Ingraham, of the Supreme Court Yesterday
issued an Injunction restraining Charles H. fahcner
the assignee OF the firm OF C. Burkhalter Co.. from
performing any OF the duties Of that position The
ground OF the Is the apparent presence OF fraud
and Its Issuance in the case Of an assignee In ex
pare proceedings is said to be unusual. The writ
is made returnable In Chambers on November 10,
when must be shown why receiver shall not
be appointed.
Application for the Injunction made In behalf
OF L. = HHdreth II. p Hlldreh and Henry Segelken.
creditors Of c. Burkhaer & Co., the lludson-st
grocery firm which failed about two weeks ago, with
liabilities said to be between 100000 and S1OO,-
900. The allegations of fraud detail midnight trans
fer Of book accounts worth 100000 from the Burk-
halter Company to the Irving National bank, less
than ten hours before the assignment OF the firm
put record
The writ is based upon allegations that Charles
H. Fanchcr Is disqualified BY reason OF interests ad-
verse to the creditors Of John II. Burkhalter and
Charles Burkhalter properly TO execute the duties
and trusts Of assignee and that the plaintiffs are
entitled to Judgment removing him from the Office,
and that Fancher Is using and threatens TO use his
authority and powers assignee in furtherance OF
fraudulent transfer OF assets Of the assgnors to the
Irving National Bank In violation OF the rights OF
oil the other creditors Hence 1t Is ordered that
the assignee be restrained from paying out or dis
posing of any OF the assets Of the firm Of c. Burk
halter d Co. Its members.
This Injunction follows hard upon nm order FOR
the equitable remedy OF discovery, which was issued
by Judge Bookstaver late on Friday evening. Ihs
was granted the petition OF the Fanco-Amerlcan
Food Company, through their attorneys, Dill, Chand-
Ter a; seymour. Ii orders the examination, before
Benjamin W. Franklin as referee OF the members OF
the firm, Charles II. Fancher, the clerks implicated
th.. MIDI ran 4 RuShUlOrc.
lawyers who drew up the assignment papers. The
order also calls for the production Of all books ana
papers bearing upon the transactions OF the FIRM Win
the Irving National Bank and with G. F. Mattlage,
who is n director in the bank.
This order issued the representation that
q uansfeS Of book accounts to the amount OF 100000
had been made after the drawing of the assignment,
but before It's execution with the Intent OF evading
the provisions OF the statutes limiting the amount
Of preferences
The afdavs accompanying the application for
the order contain some remarkable statements Henry
u. Brodhead. buyer for Burlthalter & Co.. relates
ID detail what happened on the two days previous
TO the failure. ON october IL, he says eighteen
trIckoads Of goods, valued at 5000 We're removed
from the store marked &. F. Mattlage" the name
OF "A director IN the Irving Bank Early the next
evening. be- asserts, "A telephone message came from
stern d Rushmore to the head bookkecper telling
him to keep all the clerks In the Office for special
duty that night.
At y 80 D. George z. souper, the cashier OF
the Irving BANK John burkhaeg. Mr.. stern Mr.
RushmOre and Mr.. Fancher entered the building. and
the clerks set at work mnhng OFT accounts
These fast made, were stamped and turned over
10 Mr. FaDoher Mr.. BrOdhrad understood that the
accounts being assigned TO the Irving Ma
uonal Bank. AT n. III. John BurlIhalter said that
the accounts made ont and signed by him amounted
500 900. They then went the Hotel savoy, where
Charles Burkhacr. who waiting, executed the rs
signment Oi the nrm
4 CorrOborltllg affidavit made by Louis *
Fcucrbcrg, bill clerk I'm the big grocery hDsc.
Mr.. Fnnchcr with his lawyer. Mr.. Rnslmore.
when seen the Irving National Bank yesterday az
In the courts; ~ would prefer 10 say nothing.
Every thing that hns been done has been IN
the line 81 straight business said Mr.. Fancher.
" What Ine OF discount did the Bufkhalt"rs carry
asked.
"Up Ia september they had $4,000. Then under
for the deposit Of extra collateral 10 the
amount Of - per cest 1t was INCREASED to '5Jo9C
That H. what they had, not $4,000 AS punished
The figures $4,000 concde with those Of the
book accounts alleged have been transferred AT mid
night was suggested
the amount Of the Indebtedness was" was Mr..
Fanchcr's reply.
What amount Of security given by the firm
to the bank b. carTy their account ?" asked.
Abont $4,000 said Mr.. Fancher.
The capital stock Of the Irving National Bnk Is
5JOO. 900 Under the law the amount or discounted
would have been entitled $4,000 cnc-tcnth Of
the capital stock. In the statement OF the bank show
Ing It's condition on July L. last surplus OF sloO.-
90 and undivided profits OF $2l5 900 were recorded
George f. Souper. Wilson G.. King Charles 5. Brown |
John Nix Harry Mcbride. Charles +. Matthge. VIII |
lam II. Monianve. John X. Waters. Charles furii |
halter. John W. Cnstree and W. II. b. Tottcn.