The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-05-28
DECLARES 1T INFAMOUS.
The Effort to Appoint Capital Re-
ceivsr.


ceivsr.
The following editorial in today's To
peka Capital is Major Hudson's state
ment concerning the proceedings begun
in the United States district court yes
terdayi
"The extraordinary proceedings begun
to secure a receiver of the Capital COM
pany for the personal indie btedness of
one of the corporation merits attention
To give basis for such visionary legal
claim, the petition of Mr.. Baker by his
attorneys had to recite that the company
was organized to defraud creditors; that
those holding secured indebtedness were
in collision with the fraud and that the
four mortgages upon the property were
either bogus or forfeited by reason of
holders failing to comply with the re-
quirements of the chattel mortgage law.
The allegations made in Mr. Bakers
petition show an objectionable ig
norance of the facts regarding the
Capital company as we'll as a
stamps this attempt to get a receiver
when no member of the company stock
holder or creditor, has asked or desired
one, as Infamous. It is a legal hold up,
based on Misrepresentation and a hope
that the well known prejudice of the
presiding Judge of the United States
district court would force from Major
Hudson a settlement before the case
could come to trial In this the legal
tricksters will be disappointed
'sThe facts are that the indebtedness
due John E Baker was the unpaid
premium upon lapsed life insurance
policy, taken out by Major Hudson about
1888. The judgment was against him
individually, aud was not secured in
any manner upon the Daily Capital
property. The Capital company was
organized June 6, 1890. The judgment
was taken in 1891. The company was
organized under the state law and has
fulfilled every legal requirement due
from a corporation. Notwithstanding
the extraordinary hard times of the past
five years the company has carefully and
steadily extended its business and i'm
proved its plant. There were four mort
cages upon the property at the time the
joint stock company was formed. The
purpose Major Hudson had in view in
organizing the company was to sell suf
fclent stock to pay the mortgages. In
this he was only partially successful A
majority of the shares of the company
were placed in the hands of
trustee to be held by him subject
to sale at any time to protect
those purchasing stock against the in
debtedness upon the property. From
1890 to 1895 the wides pread business de-
preston affecting all enterprises has
prevented the payment of the mortgages
although about $4,000 of interest and
principal has been paid by Major Hud-
son. The company was organized in
good faith and has been carefully and
economically managed
"a dozen men, among whom are
Arthur Capper, Dell Kelzer, H. I. Chase,
Governor Crawford, Colonel 7. w Har-
rison, Richard Thomas and others, have
purchased stock in the Capital
company. 1t was capitalized at $780,,
O0J. Some paid 60 cents on the dol
lar for their stock and others so cents
and none less. No receiver will be
named for the Capital company if the
facts can be presented to the court before
a receiver is appointed. 1t rs an outrage
that this kind of legal lying can be intro
duced in petition to the detriment of
business and injury of mems characters.
The appointment of a receiver for the
Capital company in the interest Of Mr.
Baker and against the secured creditors
will altogether depend upon the success
of the legal trickery begun by the attor-
news of ME- Baker"