The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-09-23
A RECEIVER ASKED FOR
HUNTINGTON SEED COMPANY VERY
MUCH INVOLVED.
Claims Covered by Mortgages for
More than the Actual Value
of the Entire Stock.


The Capital National Bank yesterday filed
an application before Judge McMaster. OF
the Superior Court for the appointment of
a receiver for the Huntington Seed Com
pany and for the foreclosure of a mort
gage. William B. Burford, Leopold Rauh,
Henry Rauh, Samuel Z. Rauh, Edward c.
Huntington, William H. Hartman, the ad-
ministrators of the estate of Spencer Hunt
ington, Indiana Paper Company, Lawrence
P. Riley, trustee Margaret S. Vail and the
firm of Beerhorst &, Van Leeuwen, of Gin
cinnati, all of whom claim some equity in
the property of the Huntington Seed Com
pany, are made defendants for the purpose
of establishing the priority of the claim
of the Capital National Bank. According
to the complaint and the mortgage filed
with the complaint the Huntington Seed
Company executed seven notes to the bank
for a total of SIS, 700, four Of which have
been paid in full and s1,07017 has been paid
on another. The notes unpaid are one for
s., 200, executed March r. 1896, and due in
thirty days on which $1,0lo.17 is credited;
one for $4,000, executed April 4, 1896, and due
In thirty days, and one for $1,000 executed
March 49, 1885, and due ninety days after
o
per cent. after maturity. Judgment for s15,-
900 is asked and it is also asked that
receiver be appointed to take charge of the
company's business for the benefit OF cred
itors. The mortgage given is dated April
%, 1896, ten days after the date of the last
note and is made subject to three prior
mortgages of the same date. One of the
prior mortgages is to the administrators of
the estate of Spencer Huntington and is
to secure a balance of $2,049.12 due on notes
given for borrowed money. Another is to
e. c. Huntington for $1,000 and is to secure
him on his Endorsement of a note for this
amount given to the bank. The third is for
$500 in favor of Margaret s. Vail. All the
other defendants, except Beerhorst and
Van Leeuwen and l.. t. Riley, trustee, are
protected by mortgages given on the same
day as the mortgage on which the bank
sues. Trustee Riley holds a mortgage
dated April 30 1896, to secure claims of a
number of creditors amounting to S9,S4562
This mortgage recites the fact that the
troubles of the company had caused much
uneasiness and several chattel mortgages
had been given, which caused the general
creditors to hold meeting to decide what
should be DONE 1t was decided at that
meeting that the entire property
covered by prior mortgages the only thing
to be done was to take second mortgage
and await the result. This mortgage is for
the following claims: r. e; Moore, Irving
Co, Chicago. s2,493. 80; jerome B. Rice &
Co., Cambridge, N. Y, $2,347.10; Indiana
Farmer Company, city, s131o3; Sioux city
B. White & Co, Chicago. s130o; J. Charles
Mccullough Cincinnati s130.S4; j. c. Rob
son, Waterloo Neb., $l29,29; S F, Leonard,
Chicago, $30S; Henry Syerup & Sons city,
$99. 40; Kentucky Seed Company, Louisville,
$29; M. J. Neahl. Chicago, $46.23.
a N hon tcrs1xr rra,.O
given, the company was in debt to the ex-
tent of about $4,000, but since that time
It has been reduced so, ooO The assets Of
the company in stock and accounts is about
$4,000 but to this the good will and the
value of the large mailing list must be
added. 1t is claimed by those in the bust
ness that these items are worth SIS 600. The
business has not been very good for more
than year and added to this. it is claimed,
there has been much rnismanagement. en-
failing some heavy losses. AT d Stockhold-
ers, meeting in August J. T. Huntington
were deposed and the business was placed
in the hands of w. A. Eshpack and George
Eitel, the latter being also the representa-
tive of the Capital National Bank. 1t is
claimed by Mr.. Eitel that most of the
trouble has been caused hv nrteroo nag
ment on the part of those formerly in
charge. Several bad contracts Wee mel
toned, showing where large losses had oc-
Cured. In one case there is "a suit
Ark. claims 1928 for damages on account
of the failure of the company to take his
enllre crop OF sweet potatoes at $1.25 a
bushel. which was much higher than the
market price of good seed potatoes
Mr.. Eitel says there will be no objection
on the part of the stockholders to the ap-
pointment of receiver, and says that If
man capable of mana ging the business
should be appointed and L he can get $10,-
600 to carry the business over the rush next
spring the company will be able to pay
every cent it owes and continue in bust
ness.
Judge McMaster will hear the application
for the appointment of a receiver to-mor-
row morning at o'clock. It is not likely
that there will be any objection offered
20 the proceedings. Mr. Eitel did not
know yesterday who would be appointed
receiver r;S but it is very likely. considering
all the conditions, that he will receive the
appointment. He is now in charge of the
business as the representative of the bank
and is a small stakeholder.
NICHOLSON Law Opinion.
The Supreme Court yesterday handed
down an opinion touching the Nicholson
law, written by Judge Jordan, in the case
OF Massey VS.. Dunlap, appealed from the
Gibson Circuit Court. The question at issue