The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-01-08
THE ASSIGNEE RESIGNS
LAWYERS IN KRAG-REYNOLDS CASE
HAVE ANOTHER sCRIMMAGE.
Fight Over the Successor to Edward
l.. Mckee, Who Does Not
Wish to Serve.

The litigation in the Krag-Reynolds as
signment broke out afresh yesterday after
noon. when all the interested attorneys were
called into the Circuit Court. Ferdinand
Winter, representing the assignee, Edward
l.. Mckee, announced to the court that his
client desired to resign his trust. Mr.. Win
ter explained that MI. Mckee had never
qualified as the property of the krag-Rey-
noIds Company was being handled by Re
ceiver Coffin, who was appointed by the
Superior Court Mr.. Winter said further
that the assignee, being an official of the
Indiana National Bank, was somewhat in
terested in the affairs of the Krag- Reynolds
Company, since the bank was one of the
heavy creditors. He animated there might
be some objection to Mr.. Mckee on this ac-
count and on the whole it was thought best
to ask the court to name some one else as
assignee
Judge Allen said he would accept MIR. Nc
KEGS resignation, and then there was the
usual cross-firing between the attorneys in
terested. 1t was agreed at the outset that
trust company should not be appointed to
succeed Mr.. Mckee. The court said he had
a number of names under consideration. He
had thought of appointing the receiver, ID.
w. Coffin, to act as assignee, but there was
objection to this on the ground that the
receiver holds his position under the mort
cages, and there is strong belief that both
mortgages will be attacked. The court said
he would consider the names of several men
he had in mind and make an appointment.
perhaps, to-day. Judge Allen expressed the
hope that whoever he appointed. the funds
which finally fell into the officers hands
would not be dissipated but would be ham
died judiciouSly.
"Your Honor" spoke up w. H. II. Mil
Ter, mo trust was ever robbed except by
the consent of the court.
There was the usual number of insinua-
tions during the proceedings. Mr.. Korbly
minated that there was a lot of property
of the Reynolds Company that had
not yet been turned over by the members
of the firm. He spoke Of large possessions
lin Dayton, o.. Acquila Jones spoke of the
$4,000 embraced in the second mortgage,
saying the assignee who would finally have
the distribution of the funds should be a
man who is in sympathy with the credi-
tors, who will receive nothing unless these
mortgages are set aside. Nathan Norris
declared that feelings of sympathy were not
the proper feelings to characterize an officer
of the court. Mr.. Morris spoke Of a scene
in the Superior Court last week during the
Reynolds litigation, which he hoped
would not be repeated in the Circuit Court.
The attorneys understood him to refer to
the battle over the appointment OF re-
ceiver Mr.. Korbly at this point. asserted
that the creditors he represented had de-
clined to accept under the mortgages MED.
There was some heated talk over propo-
sition it was claimed Mr. Korbly had made,
looking to the selection of NJ. OConnor as
the successor of Mr.. Mckee. Attorney
Harris said that he understood 1t was al
ready arranged that this appointment was
to be made. Mr.. Korbly, with some
warmth denied that he had ever suggested
Mr.. OConnor. II did not attend any meet
ing at night to select man to act in this
case" he retorted.
John w. Hoffman remarked that if the
Krag- Reynolds mortgages were upheld,
there would be no assets for the officers to
administer. Another attorney suggested
that the assignee should be a man who
would fight the mortgages in good faith,
and try to sci them aside. Judge Allen
| finally remarked that he would appoint an
entirely disinterested party to take Mr.. Me-
KEGS place. AS the proceedings closed, one
of the attorneys could not resist parting
| fling.
This appointment ought not to ne farmed
out by midnight legislation he remarked.