Evening star., 1895-10-10
R. HUTCHINSON REPLIES
He Answers the Charges Made by Dr.
Hammond.
Economy Necessary, He Snys, ant
Wants His Accounts Examined
md Audited.

AS sequel to the bill in equity filed Tues
day afternoon by the Hammond Sanitarium
Company against DIR. Mahlon Hutchinson,
treasurer of the company, Attorney John T..
GoolricB late yesterday afternoon filed for
DR.. Hutchinson bill in equity against DR..
VIM. A. Hammond and the Hammond Sani-
tarium Company, praying that receiver
be appointed by the court to take charge of
the personal property and books of the
company, and who shall also have the con-
troll of the business of the company until
the further order of the court. The COM
piainant prays also that his accounts, as
treasurer of the company, with vouchers
and receipts Of expenditures, shall be aud
tied and examined by some one appointed
by the court for that purpose.
DIR. Hutchinson states that he Is the
owner of $4,000 of the stock of the COM
pany, ana is also one of its creditors. The
real estate of the company is incumbered.
he explains, by four deeds of trust, aggre-
eating S14T, ,4l9.75, and he says that the
company is indebted to sundry persons in
and about the sum of 5000. The salaries
of it's officers, the wages of its employees
and the other necessary expenses of the
company, are DIR. Hutchinson claims, very
heavy, and cannot be further borne by it
unless better and more economical and
prudent management is had in the admin
istration of the companys affairs.
Asks an EX1m1 nation.
Explaining that he has been for nearly a
year treasurer of the company. and is now,
DR.. Hutchinson states that his accounts have
always been accurately and honestly kept
On the Sth instant he says he offered and
requested President Hammond of the COM
parry to have or cause to be made an ex-
animation and inspection of his (Hutchin-
soE'S) books and accounts, and he states
that he now tenders to the court any
drly appointed officer his books and ac-
counts for the very fullest auditing, ex-
animation and inspection.
Attacks Hammond.
The income and profits of the company,
says DR.. Hutchinson, will not and cannot
liquidate and pay the interest on the Sc
cured debts, or its floating Indebtedness
and necessary expenses, and, stating that
there are no funds oe the company in his
hands, he charges and claims that 1t is at
present insolvent. DIR. Hutchinson then
goes on to assert that by reason of the
methods employed by DIR. Hammond in the
conduct and management of the Hammond
sanitarium, and by reason of certain other
things connected with said Hammond, ne
fir ds it impossible for him to be further as
sociated with Hammond, either as treasurer
OF the company or as consulting physician
with Linn at and in said sanitarium. But,
he says, he cannot and Will not resign as
treasl rer or as consulting physician, by
which he would. he claims, virtually place
the management, financial and otherwise,
of the sanitarium and all its business in
tie hands of said Hammond, which would,
in his opinion, result only in further dam
age ard disaster, and by which the stock
of himself and friends would be put in
Jeopardy, if not to total loss, and certain
Indebtedness of the company incurred by
him Hutchirson) would not be paid as it
ought to be paid.
In Danger.
DR.. Hutchinson claims that the business
Of the company is in great danger, because
Of the prevailing methods, and alleged ex-
travagant management of the concern, and
he asserts that it's income can be preserved
only by placing the business in the hands
of an officer of the court. who shall be
empowered to vacate all existing contracts,
by cutting down current expenses and by a
full and complete reorganization of the
company in all it's details, which can be
dore, he believes, only by said officer of
the court taking full control By reason
of his relations with DR.. Hammond. and
because of his having been on a vacation
for the last ten days. DR.. Hutchinson states
that DIR. Hammond has had full manage
ment of the company, and he Hutchinson
has received no information to its re-
ceipts or disbursements, or as to anything
connected with the company.
He believes that in the interest OF all the
creditors and stockholders the court should
at once interpose as requested. He asserts
also that when sale is made of the real
estate or personality. 1t should be made
under the direction Of the court and the sew
eral trustees. An inventory and apprafse-
ment of all of the personal estate should. he
suggests, be had at once, an auditing and
ascertainment of the company's indebted
less, and proceedings had by which the
personal property shall be preserved and the
floating and unsecured Indebtedness of the
company paid off and lquidated. Therefore,
DR.. Hutchinson prays as above stated.