Kansas City daily journal., 1895-03-20
LOPPED OFF RECEIVERS.
JUDGE CALDWELL ISSUES An ORDER
IN THE LOMBARD CASE.
Ono oniciai Will Now DO the work THAT
Has Heretofore Been Divided Bc-
tween Fivc-Mnnagcr Mooney
steps Down and Out.

For the purpose OF effecting reduction
army of creditors, United States Judge
Henry G. Caldwell has requested the
designations OF all of the receivers of the
defunct Lombard Investment Company
except Attorney Frank Hagerman, Of
this city. The court at the same tlne
designated Mr.. Hagerman as the sole
receiver, and he Is now in charge Of the
entire business of the defunct company.
The order accepting the designations
and promoting Mr.. Hagerman was made
by Judge Caldwell in Chambers at st.
Louis Monday morning following
lengthy conference with Master in Chan
Gerry Judge II. ii. Stiles. 1t was brought
to this city by Judge stiles Monday,
but was not filed until very late. for
the reason that prior to It's being filed
there were many matters to be closed
up. papers to be drawn and records
completed. AS soon as the work was
done the order of the court was filed by
Miss Utter. clerk of the United States
district court.
The s,t four receivers who are now out
Mass. Charles S. Farchild, of New
York; Harris +. Mooney and San
ford Il. Ladd. of this city. The step was
practically decided on by Judge Cald-
well at the January meeting of the cred
itors. when the court announced that he
proposed to have the matter closed up
and out of court just as soon as 1t could
possibly be done. He intimated that 1t
could be done In six months. and gave
Judge h. ii. stiles as master in chancery
sixty days to formulate a decree for the
closing up of the business. On the Goth
day of March the decree as prepared will
be submitted to the court and the order
made.
Recently Judge Caldwell sent a copy
of a letter to each of the four receivers
who We're asked to resign. In the letter
he used the following language:
II have come to the conclusion, after
mature deliberation, that there Is no
longer occasion for more than one re-
ceiver, and therefore no justification for
paying the salary of more than one. The
receivership will have to be continued
for some time for certain technical and
legal purposes, but one receiver and the
master can do all that Is now necessary
to be done. appointed five receivers in
the first instance with great reluctance.
But the trust was of such a peculiar ma
ture, the property so scattered and the
creditors so numerous and their inter-
ests so diverse. that was probably jus
titled in doing as I did. Indeed, ] think
the result shows the wisdom of the ac-
ton.
ut Is due to the receivers to say that
no one has ever complained to the court
of their action; and that in my judg-
ment they have administered their trust
faithfully and intelligently and for the
best interests of those interested in the
trust estate. 1t Is because of their very
intelligent and successful management
of the estate that the court is now en-
abled to dispense with four of your num-
Der. In n word they have by their eX-
cellent and intelligent business manage
ment of the estate, removed the neces-
sity for more than single receiver to
wind up the business. l hereby desig-
nate Frank Hagerman. Esq, as that
one. and respectfully ask you, as I have
the others, to tender me your resigna-
tion, which you can do by adding your
name to theirs on the paper rendering
their designations, which will be pre-
sented to you for that purpose by the
master pursuant to my direction"
BY taking such step the expense ac-
count of the receivership will be cut
down $4,000 per year. The resident re-
ceivers were getting $1,000 per year,
while the Eastern men were getting but
SO, 900. The order makes no reference to
the salary of Mr. Hagerman, but mas
much as he is required to give a bond of
100000 his salary will probably be sub
stantially Increased
The order of the court directs the re-
tiring receivers to report all work done
to Judge Stiles, master in chancery.
1t is also rumored that other plans for
a reduction of expenses are being per-
fected. The receivers have offices on the
top floor of the Keith & Perry building
and have sixty clerk employed. Since
the appointment of the receivers when
the company failed the local office has
been under the control of Mr.. II. T..
Mooney. Yesterday morning he stepped
down and Receiver Frank Hagerman
appointed Mr.. Il. c. Wright as superin-
tendent in charge of the Office to rep
resent him.
At the meeting of the creditors of the
Lombard company with Judge Caldwell
on January 26 at st. Louis. the Invest
ors' Advisory Company, of st. Louis,
filed a strong plea for reduction of eN-
penses in the receivership. The COM
pany represented many holders of Sc
curities and made the plea for the in
terest of it's clients. The claim was
made that large expenses had been in
CURED In futile effort to effect a re-
organization of the company, and that
there We're heavy expenses incurred for
which no benefit accrued to the cred
itors. The manager of the company,
Mr.. A II. Cline, was seen yesterday and
appeared very much pleased over the
action of the court. In the protest he
filed he had asked specifically that Mr.
Mooney be relieved as managing re-
ceiver and another appointed.
Mr.. Cline also stated that since the
failure of the company there had been
no specific schedule of assets and la
bilities prepared by the receivers. This
fact he claimed was unknown to Judge
u
al that time he made the order to close
up the business.
The receivers, however, have filed
report showing that at the time of the
failure the company had outstanding
guaranteed loans amounting to $Si,0s2,-
$50, which they had reduced to $25,7s6,-
900. The report also showed eancella-
ton of nearly million dollars OF
debentures.
Speaking of the affair yesterday, Mr..
Frank Hagerman, the sole receiver said:
1.-The action simply is that Judge Cald-
we'll on his own motion and In the inter
est of an economical management for
the creditors called for designations
from four of the receivers. There was
no charge MAIDEN lack of confidence and
no rebuke implied. He believed one man
could handle the business and cut eX-
penses TO that point. We will go ahead
closing up the business under the order
of the court as rapidly as possible"
To Save your Dollars. II You need an ef-
n