Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1899-04-29
MARTINDALE FILES ANSWER
Says He Is Liable for Only S34OOO
and Tint He In Entitled
IN S6GOOO

TOPEKA, April 2S.-(Special.) William
Martindale, vice president of the defunct
Cross bank, at Emporia, through his at
torneys, Kellogg & Graves, to-day filed
an answer in the suit brought against him
recently by Receiver Albaugh in the fed
eral court. The receiver sued him for $780,
900, alleged to be due the bank from Mar
tindale on account Of many transactions,
lawful and unlawful, which he and Cross
had with the bank. Martindale was also
indicted on eighteen counts by the federal
grand jury. These counts were based upon
transactions covered in the civil case
against him. His trial on the criminal
charge will be held at the October term
of the federal court at 1.eavenworth. The
civil case will probably be tried mere be-
fore ss,t time.
On acGoaIt Of the close connection be-
tween the civil and criminal cases against
Mr. Martindale, his answer in the civil
case to-day indicates that he proposes to
stand pat in the criminal case. The only
allegation in the petition in the civil case
which he admits is that he Is liable to the
double liability as a stockholder. He de-
nies all the other allegations point blank,
and in his answer, which is in the nature
bank receiver for $4,000. OF this sum, he
says $4,000 should be set aside to cover his
stockholders liability and the remainder,
SIG. 900, should be established as his claim
against the bank, to be paid to him as all
other creditors are paid by the receiver.
All references to unlawful transactions by
himself and Cross made in the original pc
titlon are completely ignored in his an
swer; He sets up tive separate defenses.
against the bank: They follow:
holders liability set out in the first cause
of action, but denies his liability on all of
the other causes of action.
"Second-This defendant, at the request
nj nrOCllrpd
Eureka bank, of Eureka. Kas., upon his
own Individual obligation, the sum Of 10000
in cash. which at the request OF Cross r. ,,,
of Enporia, and used by it. This bank
is indebted to the defendant in that sum,
and this defendant is entitled to have the
same set off and applied as a credit in
diminution of his stockholders liability.
'.Third-That on October 3, 1898, this de-
fendant, at the request of e. s. Cross,
signed his name, w. Martindale, to a note
for $4,000, payable to the order of the First
National bank of New York, sixty days
after date; thereby personally obligating
York has sued the defendant to recover on
that note. BY the closing of the First Ma
tional bank. of Emporia, this note was
never paid and the defendant is entitled to
an Offset against his stockholders liability
on account of said note for $4,000.
o1rth-Ihat to on November BE- a. l this
indersed s note e for re $1,000 T. to the Fourth
National bank of St. Louis. He is now be-
ing sued by. the bank for that amount. By
reason of this. the defunct Emporia bank
is indebted to the defendant for that
amount, and he is entitled to an Offset
against his stockholders liability for $l0,-
OO0."
The fifth defense is similar to the fourth
Wherefore the defendant prays 5udg-
ment in the sum of 100000, and that sc
much thereof as may be necessary to fully
pay and satisfy this defendants stock.
holders liability be applied thereon as ar
offset in favor of this defendant. and the
remainder thereof be allowed and estab-
lished as claim against the plaintiff az
receiver to share in the dividends of the
bank"