Evening star., 1895-10-09
HAM MMOND SANITARIU M
It Gets Into the Courts Once
More.
Serious Complaints Against Mnhlon
HutchiB son, the Treasurer-Dr.
Hammond Files q Bill.

Dr. VIM. A. Hamn ond, as president of
the Hammond Sanitarium Company. an
Illinois corporation. but having its principal
office and doing business here, has, through
Attorney Samuel Maddox. filed bill in
equity against Mahlon Hutchinson and
Riggs & Co., for an injunction. accounting
and for the appointment Of a treasurer in
the place of the first named defendant.
The bill of complaint sets forth that Mr..
Hutchinson Is temporarily residing here.
and that the company possesses valuable
real estate here, improved by the Ham,
mond sanitarium, subject to four separate
deeds of trust for $4,000, S,419.75. $4,000
and $4,000, respectively. The I'd of last
March, 1t is stated, the company entered
into a contract with Hammond and Hutch
inson, whereby the latter gave two notes,
one for 5000, payable on or before August
27, 1893. and the other for "a, d,419.I5, payable
September q, 1895. the notes being part of
an Indebtedness secured by deed of trust
to VIM. C. Seddon for $7.41975. Until said
notes were paid 1t was agreed that Hutch
inson should be treasurer of the company,
to receive all moneys of the company and
to make certain payments on account OF
current expenses and fixed charges.
Two Accounts.
The company states that the notes have
rot been paid, and explains that Mr.. Hutch
Co., one in the name of the company and the
other an Individual one in his own name.
On the 18th of last month, the company
charges, Mr.. Hutchinson deposited in the
bank to his individual credit the sum of
s4OO belonging to the company. 1t Is also
charged by the company that other moneys
belonging to 1t have been collected by
Hutchinson and deposited with Messrs
Riggs & Co. to his own credit. The further
charge is made by the company that the
books kept by Hutchinson, showing the
receipts and expenditures of the company,
have not been open to the inspection of the
company's officers or any person connected
with it, but. on information and belief, the
company charges that the moneys collected
by Hutchinson on account of the company
and placed to it's and his credit are largely
in excess of the moneys now on deposit
with Riggs & Co. to the credit of both, after
deducting therefrom any and all payments
made for and on account of the company.
A Dividend.
1t is stated, too, that in the aforesaid
contract it was provided that no dividends
should be declared upon the stock of the
company until after the payment of all
fixed charges and current expenses, but
that, Notwithstanding said provision. the
company is informed that during the past
two or three months said Hutchinson, as
treasurer has pretended to pay 4 dividend
on the stock held by himself and friends
The amount. 1t Is explained, Is unknown
to the company, though it is charged that
the taxes on the property due last May
have not been paid, and $500 on account
of interest on the note of 100000, due the
Tth of last month, remains unpaid. The
salary due DIR. Hammond the first of this
month end other current expenses, 1t is
further claimed have not been paid.
To Restrain Payments.
Mr.. Hutchinson, it is said, was not re-
quired to give a bond. and it is stated that
he is not, to the knowledge of the company.
possessed of any property or assets here.
Owing to the alleged failure of Hutchinson
to pay DR.. Hammond's salary and other
current expenses, the company asserts that
it's business Is seriously impaired, and will
be greatly injured unless some fit and
porarily as its treasurer. pending an eX-
animation of said Hutchinsons accounts as
treasurer. Therefore, the court is prayed
to require him to furnish full and eX-
plicit account of all receipts and eXpendi-
lures, and that MeSsrS Riggs & Co. be re-
quired to furnish full statement concern
ing the accounts with them of the COM
pany and Hutchinson since March >, 1895.
Pending the final hearing of the case, the
court is asked to restrain and enjoin Hutch
inson from drawing any checks against
either account, and that some fit and proper
person may be temporarily appointed to
receive moneys due the company and ex-
pend the same for the payment of neces-
sary current expenses and fixed charges,
said person to be authorized to use any
balance now on deposit to the credit of the
company with Riggs & Co. for that pur-
pose.