The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-08-29
FIGHT OVER RECEIVERS.
Effort Made to Have G.. HI.
WhitcOmb and E. ]. Dallas
Removed.

J. W. Gleed has made application to
Judge Hook in the United States cir
cult court for the removal of George
H. Whitcomb and E. J. Dallas as re
ceivers of the Trust Company of Amer
lea, and the appointment of some third
party as receiver The application is
made on behalf of the eastern stock
holders of the concern, who claim that
the company is not being managed for
the best interests of all concerned.
No special charges are made against
the present receivers except that they
are not managing the receivership as
economically as might be done 1t is
stated that they agreed TO serve for
81. 500 year, but that they are now
asking for an increase.
The principal reason given for ask
ing for change in the receivership is
the allegation that both receivers have
been connected in the past with the
concern, and with it's predecessor, the
Kansas Loan & Trust company, as
legal advisers, and that they should
not be receivers. It is alleged that one
man could do the business as well as
two
the Trust Company Of America. which
succeeded to the business of the Kan
sas Loan & Trust company, went into
the hands of the receivers, practically
voluntarily. Mr.. George H. Whitcomb,
attorney for the company. and T. B.
Sweet, who had been at the head of the
company, were appointed as its receiv-
erS- Later Mr.. Sweet learned that an
effort would be made to remove him
and he voluntarily resigned, and Mr..
Dallas was appointed in his place.
Since the action for the receivership
was first brought. there have been num-
erous intervening petitions filed in the
action by the various stockholders
and creditors in the east, charging
gross mismana cement against Mr.
Sweet and George NJ. Noble who was
associated with him in both the Trust
company of America and the Kansas
Loan & Trust company.
The principal one of these actions is
one brought by the Scottish-A rnerican
Investment company of Edinburgh
which claims that the Trust Company
of America collected S5O. 900 worth of
its mortgages and never paid over the
money.
A w. Farrin; cashier of the Montpe-
lier Savings Bank & Trust company
makes AFFIDAVIT that his company sent
to the Kansas Loan & Trust company
IN June. 1888, a note upon which was
due $500, for collection and remittance
He charges that the money was duly
collected by the Trust Company of
America, but that the money was kept
by the company.
The National Life Insurance com
pany Of Montpelier. of which Charles
Dewey, a brother OF Admiral Dewey is
president. makes a similar charge. ex-
cept that the amount due was 81 100
George R. Fisk of Massachusetts,
ana Martha W. Baker of Ohio, also
make antdavits along the same line.
involving amounts from $500 to S17OO
Judge Hook heard the application
ana then continued the hearing until
November.
Attorney General GODDARD has also
begun an action in the state supreme
court to annul the charter of the Kan
sas Loan & Trust company It is a
quo Warranto proceeding to compel the
company Sts I1s- to show why it should retain
Its charter in view of the fact that it
las moved its offices outside of the
jurisdiction of Kansas
AFTER the company transferred its
Kansas business to the Trust ComDanv
OF America it is charged that it moved
It's offices to Denver in order to escape
the jurisdiction of the Kansas courts
At the same time it is doing business
under a Kansas charter
me suit brought by Attorney General
Godard IS to ascertain whether or NOT
corporation may organize and secure
charter under the law of Kansas. and
claim the benefits of the Kansas laws.
ana then move to another state where
II VIII not be itself amenable to kan
gaS courts.