The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-01-17
RECORD OF The COURTS
Trial Of the Merchants National
Bank Case Against Assignee
Max Kahn.
To Test the Validity Of the Assign
mont of Greenwood,
Bohm e. Go.
A Jury Secured and Testimony Higgins
TO.Dav--Jndges Hunt and buck
Will Preside.

The we'll known cass Of the Merchants
National bank, of Helena. against MAX
Kahn AZ assignee Of GTssnhood, BONN d
Co., WA called in the district court yestet-
day for trial. II took the alto neys some
time 10 Get 4 Jury aud no testimony was
taken. but will be commenced to-day. On
Feb. IL, 1892. Gresnhood, BONN u Go. as
signed all their property. resl. personal
and mixed. In Helena and New York city,
including some real estate In Seattle, Wash
inRteu, TO MAX Kahn. who was then acting
~ their bookkesper. Kahn took posses
sion of all the goods In the store, and tslo-
Rraphsd 70 New York that an assignment
had been made OF all the property and di-
rested a party there to take possession Of
the property in his name a. assignee.
Among The prefer cd creditors under the
assignment wore Mrs. Caroline West
homer. s. $500; +. Retail, New York. $4b.-
600; Merchants National bank, $3S, 600;
First National bnnk. $l7. 900; Thos. CruUe
Savings bank, $1,000; American National
bank. $4,000; Mrs. j. M. Ryan, $4,000; W.
G. Hickey, : ,50o; II. Barnett, 1887; Bach,
Cory g. Co., $1,000; Col. Morse. New Chi
caRo. 80. 800. and Cullen, Sanders a. Shell
ton. $1,000. The assignment further pro.
vided that il any assets remained after
paying the preferred creditors In full the
unp,eferred creditors should receive their
pro rata share Of the balance remaining in
the hands of the assignee. On Feb. ID, the
day following tho assignment. the Mer-
chants National bank, through it's attor-
neys, commenced suit in the district court,
issued writ of attachment and directed the
sheriff to levy the writ on the property in
the hands of the assignee. AND take and
hold possession. The sheriff went to the
store and demanded of Kahn. the assignee.
possession Of tho store u goods. and or
dered him 10 deliver over the keys to him.
This he refused to do, claiming that he held
possession a. assignee Of Greenwood, BONN
d Co.. under the assignment and was en-
titled to hold the property. The sheriff
then secured a large bond from the bank,
and broke in the door and ousted the %.
bank commenced the present suit. which ID
one In equity. asking to have the assign
ment set aside as fraudulent, and the asseta
converted into cash and applied to the
payment Of their judgment at law. One Of
the grounds of fraud alleged by the
bank is that Z; Retail. Of New York, who ii
preferred to the amount of $4,000. undsl
the assignment. was q silent partner; and
the plaintiff now relies on other grounds "a
defeat the assignment.
There is still another suit pending in the
United States States circuit court, in which
4. Retail is plaintiff and the bank, Kahn,
assignee, l.. H. Hersh6eld, Aaron Hsxsh,
field, Isaac Grsenhood, Ferdinand Bohu
and William Muth are defendants. Thi.
suit involves the validity of the assignn en-
also. The bank demurted ON the ground
that the United States court had NO iuris.
d,otion to try the case. for the reason tina
a suit of a similar nature was pending ix
the state court, but Judge Knowles over
ruled the demurrer. and held that his court
could try the case. The jurymen who will
try the case are David Biacker, j. H.
Freezer, John W. Thompson. H. NJ. Brand
egee, George W. shaw. Henry sisben. E. E.
Woodmsn, F. X. Turner. @. 7. Perry, Jesse
l. Phelps. p. J. Connor and J. b. Lock
wood. judges Hunt and Buck will presid.
in tho trial of the case. The Merchants
National bank 10 represented by Mcdonnell
ClayberR & Gum and ex-Gov. Carrenter.
Kahn's attorneys are W. L. Cullen. George
=. Shelton. j. A. Walsh, 9. @. Newman and
Il. j. Walsh.