The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-01-01
A RECEIVER IN CHARGE
HE THINKS KRAG-REYNoLDs BUsI-
NESS WILL BE CLOSED OUT.
ID. w. Coffin Appointed by Judge Har-
vey, After the Lawyers Had AM
other Long WranSIe.

David w Coffin was yesterday afternoon
appointed receiver to take charge Of the az
fairs of the Krag-Reynolds wholesale es-
tabHshment, which went into the hands of
an assignee last Monday. AS agreed on
Thursday afternoon, Lafayette Perkins,
trustee under the first mortgage executed
by the Krag-Reynolds Company, resigned
his trust yesterday, filing statement with
the court setting out his reasons for with
drawing from the trust. lie denied all the
ALLEGATIONS of the complaint of the First
National Bank of Chicago as to misconduct
and negligence in the performance of his
duties He said he believed the firm he rep
resented to be insolvent, and thought the
interests of the creditors would be best pro-
tected by a receiver.
Mr.. Coffin, after his appointment, at once
took charge of the Krag- Reynolds concern.
Edward L. Mckee. to whom the firm as
signed, has never had control of the assets
as the trustee had been acting custodian
of the property. The receiver filed a bond
of 100000, with the Fidelity Trust Company
as surety The cost of this bond will be
$500, which is to be paid out of the property
in the hands Of the receiver. The bond was
fixed at 100000 but at the suggestion of A.
G. Harris who represents Eastern cred
itors the sum was increased to 100000. The
selection of Mr.. Coffin was made after
long wrangle between the attorneys as to
who would be a proper person to have
charge of the property. At conference of
some of the creditors, held Thursday night,
it seemed to be understood that the Union
Trust Company should be appointed re-
ceiver. Yesterday morning when the attor-
neys gathered in the cou room deter
mined fight was made against this PROPOSE
ton. There were intimations of a sensational
nature as to the character of the Krag- Rey-
nolds failure. w. II. H. Miller spoke IA
yorable of the Union Trust Company. He
said this appointment would be acceptable
to those holding large interests in the af-
fairs of the insolvent firm.
A. c. Ayres referred to the Indiana Ma
tional Bank which is a heavy beneficiary
under the first mortgage, as being closely
connected with the interests of the Union
Trust Company. He opposed the appoint
ment. Attorney Walker also opposed the
appointment of the Union Trust Company.
He spoke of A. C. Harris, who, with Attor-
ney w. II. II. Miller, represents large
claims against the company, as being the
vice president of the Union Trust Company.
A. G. Smith opposed the Union Trust Com
pany, although he said he had personal in
bCACSlS III l4lO IOAhPdAAys liz 0pOhC VI SAS
company's intimate connection with the
Indiana National Bank. He was of the
opinion that little weight should be given
to the wishes of the various banks secured
by the first mortgage. On this question he
said:
Suppose it should be shown that this de-
funct grocery had borrowed of every bank
where it could borrow, and purposely to
SWindle as appears on the face of the as
Sl2nme0t. Banks SUPPOSED TO KNOW
whom they are dealing with, and suppose
that the banks knew that these public rob-
bers had bought goods to the amount of
100000 on credit within thirty days of a
contemplated dissolution. Suppose that
mortgages were placed on these goods SO
bought, and the banks accepted these mort
cages what would this court say to the
validity of those mortgages? My clients
contend that the first mortgage was taken
on goods bought within the last month be-
fore the assignment, on unbroken packages
on which the freight had not been paid.
This would be badge of bold fraud if it
could be proved. Suppose this be true, can
any one connected with bank interested
in such a mortgage properly be appointed
a receiver"
When it became evident that the Union
Trust Company would not be appointed the
names of a number of men were suggested
whom it thought might be suitable to
administer the trust Rufus n. Syfers,
William Kothe, NJ. OConnor, d. III. Wiles,
ex-Judge Edgar A. Brown and ot1ers were
suggested. At 1 o'clock Judge Harvey said
he would consider these names and at 2
O'Clock would make the appointment In
the meantime the name of David w. Coffin
was suggested, and Judge Harvey sent for
Mr.. Coffin, The latter consented TO accept
the trust, and the appointment was an
nounced at the hour named. The court said
it wanted it understood that this appoint
ment did not reflect on any person who had
been mentioned either as an individual or
trust company All of the attorneys inter
ested in the trust seemed to be satisfied.
WHAT THE RECEIVER THINKS.
Receiver Coffin last evening appointed
Lewis c. Walker as his attorney during the
administration of the trust. When the re-
ceiver arrived at the Krag-Reynolds estab-
lishment he found a deputy sheriff removing
a quantity of coffee on a writ of replevin.
The receiver was unable to prevent the re-
moval, but will give bond for the goods
sought to be replevined hereafter. Three of
these replevin suits have been set down for
trial to-day. This morning the receiver will
have a conference with the court, when it
will be determined just what is to be done
with the property. 1t is the opinion of the
receiver that the stock will be sold to whole
sale dealers in job lots. Mr.. Coffin said last
night he could give no definite estimate of
the assets and liabilities of the Krag-Reyn-
olds Company. He thinks there NAV be
100000 worth of goods in the house, and the
outstanding accounts are estimated at some
thing over 100000.
IT is said this is the first wholesale grocery
failure in this city in thirty years. In 1867
the e. i. AlVord &l Co. grocery house made
an assignment. and there have been no fail
ures in this line since then. This firm was
located at the corner of Meridian and Geor-
gia streets Last Monday w. A. Krag of
the ag-Reynolds Company, resigned the
presidency of the Wholesale Grocers Asso-
citation of Indiana Yesterday the assoca-
ton met and adopted resolutions expressing
regret for Mr.. Krag in his misfortune and
thanking him for his Jealous efforts in the
interests of the association and the business
it represents.
The preferred creditors of the Krag- Reyn-
ODDS Company are: The Indiana National
Bank, 27,367.54; Capital National Bank $685.
00S.54, Harrie n. Reynolds, of Dayton, o.,
$4,000; First National Bank of Chicago,
$1,000: Nicholas MeCarty Harrison. $25 900:
Meiman, of New York, $7,O23S5.