The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-31
ATTORNEYS SW0OPDOWN
4 HOST OF THEM IN COURT IN KRAG-
REYNOLDS LITIGATION.
Investigation of COmpany's Affairs
Begins-NIr. KraE on the stand
Additional Suits Filed.

An investigation into the affairs of the
Krag-Reynods Company the wholesale
grocers who assigned to Edward l. Mckee
last Monday, was commenced in the SUI
perior Court yesterday afternoon. The ex-
animation was preeipitated by the suit of
the First National Bank of Chicago. de-
mandng that Lafayette Perkins. trustee
under the first mortgage filed by the Krag-
Reynolds Company. be removed and that
receiver be appointed to administer the
trust to the best interests of all the credi-
tors.
When Attorneys Jameson q Joss ap-
peared yesterday afternoon in the interests
of the Chicago bank, Judge Harvey found
himself besieged by number of the law
yers who were there to press the claim of
some client. Most of the attorneys repre-
scented creditors of the Krag-Reynolds
Company. A. C. Harris was present in the
interests of the Importers and Traders
Bank, of New York. who, it is said. holds
claims against the company amounting to
more than 100000 Lewis c. Walker repre-
scented a number of other creditors. Ferdi-
nand Winter appeared for the assignee,
and Attorneys Henry Span and Frank
Hord were present for Trustee Perkins.
There was some question as to whether the
Superior Court would have jurisdiction in
the case. The attorneys for the trustee
claimed Mr.. Perkins could only be removed
by the Circuit Court. Attorneys Harris, W.
Fl. Fl. Miller Lewis c. Walker and o. b.
Jameson contended that the Superior Court
had ample jurisdiction. Mr.. Spaan declared
the trustee would, if given time, appear
before the Circuit Court and resign the
trust, but he did not propose to resign in
the Superior Court under charges.
1t was explained to the court that the
trustee has charge of the Krag-Reynolds
stock. The assignee, it appears has not
yet assumed control. Attorney Walker as
serted that all of the creditors are anxious
to have a receiver appointed and he be-
leved it was the unanimous desire that
Trustee Perkins resign The latter, he said,
was continuing in office against the wishes
of all the heneficiaries under the mortgage
A smart tiff occurred between Attorneys
Walker and Spaan. The latter asked Mr.:
Walker to come down to specific facts and
quit generalizing.
What do you mean, anyway asked
Mr.. Spaan interrupting the attorney.
II mean what my utterance would imply
to any man who can understand plain Eng
fish, the retOrt
rs that specitic?'' asked Mr.. Spaan:
Do you want me to be offensiye? in
quired Attorney Walker
w. Fl. II. Miller referred to the fact that
Trustee Perkins had been one of the at
torneys for the bankrupt firm. The attor-
ney said If there was any one thing well
settled it is that when a trustee is to be
appointed for firm he should not be the
counsel of one OF the parties The trustee
should be a man who is disinterested en-
tirely in the trust he is to administer. Mr..
Miller said the Superior Court Is a court of
chancery, which always has the power of
appointing trustee or receiver. He
urged that something be done at once. ue-
claring that creditors are arriving by every
train to replevin the goods in possession
of the grocery firm. Attorney Charles W.
Smith spoke of a meeting having been held
in his office a few days ago, when 1t was
requested that some proceedings be brought
at once by which the rights of the credi-
tors could be protected Mr.. HOrd inter-
rupted at this point.
''Is it not Il fact he asked, that the
meeting broke, up in disgust because the
Yes, but the disgust was caused by
your refusal to have receiver appointed
replied Mr.. Smith.
II ask you now" exclaimed Mr. Hord,
IF that mortgage was not made in your
office and by your consent?''
Yes" said the attorney without our
knowing at the time what the real truth
was. We were advised that the indebted
ness did not exceed $'75.OOO.'
Attorney NeWburger urged that receiv-
er be appointed without delay. He said this
was important because of the 900 of
43utstanding ACCOUNTS beloqging TO the
after hearing the statements of attorneys,
said he would hold the matter of a receiv
meantime he desired to hear some evidence
as to the condition of the Krag- Reynolds
firm. 1t claimed by some of the at
torneys that a receiver could not be APP
pointed on the application of the Chicago
bank the note held by the bank is not
yet due. Later in the evening Attorneys
Harris and Keith, representing the jobbing
house of Wolff & Reesing, of New York,
made q formal application for a. receiver.
1t is claimed the Krag-Reynolds firm is in
debted to this firm in the sum of $40. 1t
was asserted by one of the attorneys that
several insurance companies have written
here to the agents, instructing them to can
Gel the insurance on the Krag-ReynoldS
property. Attorney Hord declared that the
insurance on the stock had not been dis
turbed
Replevin suits against the Krag- Reynolds
Company came thick and fast yesterday
evening. At 5 o'clock last night action
against the Wholesale firm had been com
menced by the following plaintiffs: Wagner
& Company, of Baltimore, canned goods
valued at 1883; Hard & Rand. Of Chicago,
Brett q Co. of New York city, l65 bags
of coffee valued at $l,596,47: ri. W. Banks
& Co.; of New York city, 26O bags of coffee
valued at $1,7O2.42; Leggett & Meyers, of ST
Louis 500 boxes of chewing tobacco valued
at $3,33l.10; Lille Babbitt Hyde carrying
on business under the firm name of B. T.
Babbitt, 240 boxes of soap and thirty boxes
of washing powder valued at $500; j. H.
Laboree Go CO. Co.. 272 bags Of green coffee
bags of coffee valued at $500.
William A. Krag. vice president of the
the Krag Reynolds Company, was put on
the witness stand and questioned late in the
afternoon by Attorney Jameson. He said
he had been in charge of the companys
travelling men and that after the first mort
gage on the company's property had been
executed, goods were sold in the usual way.
He denied that goods were shipped out last
Tuesday. He admitted that a lot of coffee
was taken from the store four days ago,
but the coffee was not the property of the
company. 1t had been rejected and was
sent away. This was with the consent of
the assignee and trustee. Mr.. Krag was
asked as to the notes executed by the COM
pany to Nicholas McCarty Harrison and
Harrie n. Reynolds of Dayton, o. The at
torney asked the witness what the consider
alton was in the execution of these notes.
He said that money was the consideration
Nothing further was asked on this subject
The testimony of Mr.. Krag will be con-
tinued this morning.
DRUGGIST MARY EVANS SUES.