The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-05-04

8
law The incorporation in Colorado is
the Investment Trust company. The
title used in Kansas is the investment
Trust company of America.
Upon the accumulation Of foreclosed
properties a sub-cOmpany for the es-
pecfal handling of the properties was
organized this being the City Real Es-
tate Trust company
The City Real Estate Trust company
erected the building on Seventh and
Jackson streets known as the Real Es-
tate building, and mortgaged the same
for S16,O0 to the Kansas Mutual Life
Insurance company. The unpaid taxes
on this building amount to about $3.50
and 1t is understood that the title has
now passed to another auxiliary com
pany, the Southwestern Realty com
pany.
Ferry & Doran who brought a suit
for a receiver for the Investment
Trust company of America in the
Shawnee county district court last
week regard the appointment or the
receivers in the federal court as q
scheme to defeat the ends sought to
1 be secured by their suit-the appoint
ment of receivers who have not been
connected with the company
We viii have to let our suit drop
now I suppose" said Mr.. Ferry, after
he had heard of the action Of Judge
/ Foster, "but we will now go into the
court and ask Judge Foster to remove
I at least one of the receivers and ap-
point some one who has not been con-
nected with the company and VIII not
I be under the thumb of Mr Ball"
In the suit filed i'm the district court
I serious allegations were made and
/ when the announcement that this suit
/ had been filed was made William Lloyd
/ Harrison of Boston who has sold many
! of the bonds for Mr.. Ball came to To
! peka. Mr. Garrison said ne hoped
/ when he came here that it would not
I be necessary to ask for the appoint
! ment of receivers Il have, however,
agreed to their appointment" said Mr..
] Garrison to a Journal reporter. II was
/ satisfied after looking the ground over
/ thoroughly and consulting with the
/ other members OF the committee ap-
| pointed to examine into the facts, that
/ the interests of the bond holders could
I be best protected by the appointment
| of receivers friendly to their interests
/ The appointment or rece1Ne erS was ask
/ ed to avoid the suits of numerous
| small bond holders and to avoid the
4 appointment Of receivers who were not
The suit commenced by Ferry &
! Doran would probably have terminated
in the appointment of receivers by
Judge Hazen had not Judge Foster
/ acted The petition on record in the
| district court alleges that the Invest
I ment Trust company of America and
I the City Real Estate Trust company
are in fact the same concern and that
H. E. Ball is the controlling spirit in
| both companies and that the trust
agreement by which the City Real Es-
tate Trust company was to act as trus-
tee for the Investment Trust company
is fraudulent and part of a scheme of
H. p. Ball to defraud eastern investors
who are the holders OF the debenture
bonds.
lit is also alleged that Mr.. Ball with
drew nearly all the mortgages upon
which interest was being paid and
which were the securities for the de
benture bonds and substituted worth
less securities which had accumulated
in the hands OF Mr.. Sail and the KAN
sas Investment company which the IN
vestment Trust company succeeded.
Tt is alleged in the petition that no in
bonds since June, 1895, and that the
company has collected the rents and
other accumulations upon the securi-
ties.
Ferry & Doran say they represent
! about $4,000 worth of debenture bonds,
all held in the east. ROSSiugtOn. Smith
q Dallas also have charge of about S10.-
/ 600 worth OF the bonds, but they have
consented to the appointment of the
Y receivers.
The Investment Trust company OF
America was organized in 1880. as the
successor of the Kansas Investment
company A great portion of the 81
/ 100000 of debenture bonds We're issued
I to pay Indebtedness of the Kansas In
vestment cOmpaOy. The creditors were
/ allowed to take as per cent of theiI
[ credit in debenture bonds and 25 PEI
[ cent in preferred stock, but bonds have
been sold since then and some are now
held in ireland and Scotland. The bulk
of them are in the hands Of eastern in
veStOrs. They are secured princfDaIIy
by mortgages on Kansas real estate ir
the hands of the City Real Estate
Trust company, and it is admitted thai
these securities have greatly shrunk il
value w nile some of the parties inter
ested claim that the bondhOlders Will al
be paid when the assets can be realized
upon, it is doubtful if they will ever re
ceive what they invested in Investment
Trust company debenture bonds.
Following is the statement of the par
ties interested for the Investment
company.
The appointment Of receivers was
necessary because the City Real Es
tate Trust company refused to serve
longer as trustee, and it was necessar r5
to have some one to look after the Sc
curities and protect the interests of the
bOndhOlders.
THE debenture committee. COMPOSED
/ of A H. Horton, p. G.. Noel and VIM
Lloyd Garrison. was selected by the
bOndhOlders at the request of the CITY
Real Estate Trust company. The com
mlttee held the power of attorney fOi
about 81 0O0, 600 of bonds, and after max
ing an examination concluded to asl
/ for the appointment of receivers. Tht
eNaet amount OF the bonds outstanding
- is s.. 500, O00-
I THE suit is brought in the name O
A. w. Anthony of Providence. r. T.
and against the Investment Trust com
/ pany and the City Real Estate com
/ pany as trustees.
The assets of the company are esti
% mated at S4,000,00O and they consist o
fam mortgages and property in Kansas
w. Though values have shrunk greatly
we believe that the bondholders viii re
J ceive all the money that is due them
This suit does not effect the Cit
, Real Estate Trust company of whicl
Mr.. BAH is treasurer. and its bushes
= viii be conducted just as it always ha
been.
The federal court has jurisdiction Ii
Z this case, and the appointment of tn
receivers win determine the suit in tn
district court
PETER WINS AT LAST.
Gets Els Bnnd Rasnl,1+inn aafnra n,