The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-16
USED ANOTHER'S PATENT
RECEIVER OF AMERICAN HoMINY
FLAKE COMPANY NAMED.
Grand Jury Refuses to InGict William
Brooks, the Boy Who Killed
Frank Mathews.

Judge Baker, of the United States Circuit
Court, yesterday issued an order appointing
a receiver for the American Hominy Flake
Company of this city. The appointment
was made upon the petition Of the Hudnut
company, Of Terre Haute, to protect its
claim against the American Hominy Flake
Company, on account of which an inter-
locutory decree was rendered by the court
Oct. Z.
The Hudnut company, OF Terre Haute, Is
engaged in the manufacture of products OF
cereals and controls certain patents of ma
chinery for that purpose. In the complaint
on which the interlocutory decree was rem
dered it was set forth that the defendant
company haG infringed upon the complain
ants rights in the patent process for max
ing ccrn flakes, such infringement extend
ing from July IA, 1894, until the defendant
company's mill closed. Judge Baker found
for the complainant and referred the case
to a master to determine the amount of
damages which should be allowed the COM
plainant. This interlocutory decree was
rendered Oct. z, and yesterday the COM
plainant filed it's application for an injunc-
ton and the appointment of a receiver. 1t
was represented that the defendant COM
pany had constantly manufactured roducts
by the patented process since July Il, 1894,
until recently and that it had made large
profits on them. 1t was shown that the
company was organized July IA, 1894. with
NJ. l.. Mowrer as president, John l.. Green
as secretary and e. a. Sissy as treasurer;
that shortly thereafter A1oWrer sold his
snare to Frank Churchman and William +.
Churchman; the capital stock was $S,UU0 and
all paid in; that in March, 1886, the plant
was vaiued at from $o,VUO TO $4,000; that in
july, 1856, after this case was filed and
had been argued the officers of the COR
poration disposed of all the stock and most
or the tangible property and other assets,
and that they also disposed of the capital
stock for an insignificant sum-, and 1t is
now held by Lowe Carey, who is inSolVent;
that on Aug. 81, 1896, a mortgage Tor $500
to John l.. Green and one for SS25 TO John
ii. Harris. The compiainantS set forth that
the mortgage to Harris was given to pre-
vent the complainant collecting judgment.
The complainant further sets forth it's be-
lief that the assets of the company are
Churchman, John L.. Green and c.. A. Sis
by, and that Carey, the apparent owner of
about 81, 800 worth of machinery, is now try
ing 10 dispose OF it SO that the proceeds
cannot be reached by creditors. 1t was
prayed that the court issue an Injunction
restraining Carey and ali others from SELL
ing, any OF the property of the defendant,
take charge of all the defendants assets.
books, ETC.. pending a final disposition Of
the case after the report of the master in
court on the interlocutory decree.
Judge. Baker appointed Horace B. Hord
as receiver. The American Hominy Flake
ington street at the crossing of the Belt
railroad. The receiver gave bond in the
sum OF $1,000, with the Fidelity and Deposit
Company OF Maryland as surety.