The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-07-07
CROSS BANK AFFAIR.
A New Turn - Hearing May Be
In COIOradO-DepOsitOrs
Angry.


Gazette of July 6:
The readers of the Gazette do not
need to be reminded that on February
2S 1899, a suit was brought in the cir
cult court of the United States for the
district of Kansas in equity, entitled:
Fourth National bank of St. Louis,
complainant, against Morton AIbaugh,
receiver of the First National bank of
Emporia, +. c. Newman and Others"
1t is claimed on behalf of the COM
p1ainant that Martindale owes it $20,-
900 and interest from December 19, 1898,
and that he owes the First National
bank of New York $50, 900 and interest
and that he owes Union National bank
of Kansas City $4,000 and interest and
that he owes Ford Harvey $4,000 and
interest.
That these debts were, as between
Martindale and Cross, the debts of
Cross and that Cross had given to
Martindale several bills OF sale of the
Sunny Slope stock, and that the bills
of sale were in legal effect chattel mort
+ cages and that the holders of these
claimants, holding claims aggregating
$4,000 and interest were in equity en-
titled to foreclose these mortgages and
| scoop in the whole property now held
by Newman as administrator New
man, as administrator, is seeking to
have this Sunny Slope money go to all
! the creditors of Cross and, as he was
| owing large sums to the bank, the de-
! positors would thus be benefited.
| Judge Cunningham represents the COM
| plainant and the First National bank
! of New York, Judges Graves and Kel-
! logg represent Mr.. Martindale; I z.
! Lambert, Judge Buck and John Mad
! den represent Mr. Newman and Incl
| IDENTIFY all the depositOrs. Newman and
| Albaugh have been anxious for an
! early trial and it was supposed the at
! torneys were.
| The two banks represented by Judge
! Cunningham, have already taken the
| testimony of S. Nation, c. V Eskridge,
| Thomas Evans, H. c. Whitley, F. c.
/ Il a ri md fna ID
/ ministrator has examined ]. NJ. john
/ son, G. S. JObes, John Henry, George
| Plumb and Charles Johnson. The re-
| ceiVer and the administrator insist thar
| q fair share of this Indebtedness was
! the bona fide Indebtedness of Mr.. Mar
| tindale of the firm of Martindale &
| Cross, and that none of these bills of
sale was ever delivered to Martindale
| in the life time of Cross.
! One Of these bills, it will be remeIn-
! bered, was dated the day before Cross
| suicide.
The parties to the suit through their
| attorneys, by their last adjournment
| were to resume taking testimony to-
morrow morning. It was thought that
Mr.. NIartindale would take the stand to
account for these bills of sale, until this
| forenoon. This morning, Messrs. Gun
! ningham and Martindale's attorneys
! notified the other side that they in
! tended to appear before Judge Williams
| in. Colorado on the 14th inst. and there
! present Martindale to give his oral tes-
! timOny.
This would make it impossible to ex-
plain or controvert Martindale's testi-
! mony by the records and by Emporia
| witnesses who would be needed, unless
! they should go to Colorado, and Lam
! bert & Higgins and Buck & Spencer,
| representing the bank depOsitors and
! the Cross estates, would not, could not
| and dare not consent to the springing
| of that trap. They are very mad. They
| had assured the depositOrs of an early
trial. 1t is not their fault that it goes
over.
| Mr.. MartindaIe's side" is this: That
| ne desires the presence of the federal
judge to protect him from cross exam
| inatiOn which might hurt him in the
| criminal suit, and which cross -eXamin-
alton the referee taking dispositions, ad-
| mits without question.
| The depositOrs are naturally indignant
all the mornings developments and lay
| all the blame for it on Martindale.
| There is no ugly talk whatever against
| his attorneys, Judge Graves and Judge
| Kellogg, whom everyone believes are
| doing their duty by their client: nor
| against Judge Cunningham, who repre-
| sents the foreign banks. The talk for
| the first time since the bank failure is
directed at Martindale- The deDositors'
| committee IS especially enraged and JOhn
| Johnson, the chairman of the committee
| hunted up a Gazette reporter and asked
! permission to be quoted He said: 4
| want you to quote me as chairman of
| the depositOrs' committee. The com
! mittee has absolute faith in the way
| Lambert has conducted this case and in
the way Albaugh is closing up the bank
| affair. But at the course MartindaIe
| has taken and is taking in this matter,
| we are mighty mad. I want you to say
| that this committee is in a mood to
| raise fund to hire the best legal talent
| in this county to push the criminal pro-
| ceedings against Martindale to the Bit
| ter end. He is trying to protect his
! interests with money that we might
! have"
There was a rumor on the street a
| week ago that the agreement which was
| reached in making the trusteeship for
| Martndale's property, included an
agreement by Lambert and Albaugh
not to push the criminal proceedings
| against Martindale. This rumor is false
| No such agreement was reached, and
the criminal trial will go on.
Self preservation is the first law of
| nature. Martindale is not to be blamed
for trying to save everything he can
get out of the wreck. Neither is he to
| be blamed for not caring to go through
| a free-for-all cross examination with
Ike Lambert after him, when in an IN
guarded moment Mr.. Martiudale might
make an admission that would send him
to the penitentiary. A judge might rule
some of those questions out, but a ref
cree can not. Mr.. Martindale may OF
course, refuse to answer, but that would
in a measure prejudice his case. He is
not in an enviable position. He is prob
ably doing what he thinks is best.
Now that Mr.. Martindale has refused
to testify here in Emporfa, the case will
have to be continued and the old thing
is likely to drag along until the attor-
! neys eat their heads off in the deposit
! Newman and A1baugh or their attor-
neys who have done all in their power
to hasten the final disposition of the
| case.