The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-07-27
BUTTE News.
WANTS AN ACCOUNTING
A Suit Instituted by the Sim
mons Hardware Company.
A CONSPIRACY ALLEGED
On the Part or the Defunct Firm of
Freyschlag, Huffman q Co. Of
Philipsburg-M Matters in the
District Court

suit was instituted in the district
court yesterday by the Simmons Hard
ware company against E. c. Frey
schlag, Joseph A. Hyde. Frank Durand.
James Patten, Josiah M. Merrill, John
p. Rains and H. G. Mahan. for the
purpose of securing an accounting of
the affairs of the defunct firm of Frey
schlag, Huffman & Co. of Philipsburg.
1t is alleged by the plaintiff that the
defendants entered into conspiracy
for the purpose of defrauding some of
the firms creditors
In May, 1895, the Simmons Hardware
company obtained Judgment ag ainst
Freyschlag, Huffman & Co. for 81, 059.-
20, but no property has been found up
on which the judgment could be en-
forced, and it remains unsatisfei.
Some of the defendants above named
were directors and defendants of the
Ph1lipsburg firm, and the latter on July
], 1888 for the purpose of dafrauding
Its creditors, executed a note to the
defendants for $31,S27, and they as
signed it to Joseph A. Hyde and Josiah
M. Merrill. 1t is claimed that both the
note and assignment were made with
out considerati ton and wholly with
fraudulent intent. The company at
the time was conducting large NOR
camille establishments at Granite,
Phflfpsburg and Combination, and
was possessed of property valued at
$25O.O00, while it's indebtedness was les
than 100000. 1t is alleged that on
Sept. rs. 1893, Reins and Durand and
other directors of the company entered
into conspiracy to defraud the cred
1tors and to convert to their own use
the property of the company, and
made written agreement to divide
les Af Anf@tty
in pursuance of the agreement they
caused r. A. Luke, receiver of the
First National bank of Philipsburg,
to commence two suits against the
company, one for s2031 and another
for $7S.61, and caused the property of
the company to be attached. The
claims upon which the suit was
brought. it is alleged, were not then
due. The parties also caused other
parties to bring suit against the COM
pany for various amounts, and agreed
to make no defense, and permitted
judgments by default to BE- taken.
Others creditors attempted to inter
vene and asked leave of court to de-
fend the actions, whereupon the Off
GERS of the company, in order that they
might not be obstructed or delayed in
having the property sold under en- ex-
ecution, so they could buy it in for
much less than it's real value, and de-
fraud the plaintiff and other creditors,
entered into an agreement with the
intervenors whereby the complaints in
intervention were withdrawn and dis-
missed, and the property was sold and
purchased by James Patten and others
for ISL $50, less than one-fourth of the
real value of the property. After the
sale the defendants above named took
possession of the property and proceel-
ed to dispose of it, and converted the
proceeds to their own use. The Sim
mons company claims to have received
the first knowledge of the fraud only
recently. The court is asked to require
the defendants to give an accounting
for all the property and profits receiv-
ed by them. and deliver over to the
plaintiff and other creditors of the
old company the profits and property,
according to their respective rights,
and to decree the defendants to be
trustees of the property received by
them for the benefit of the creditors.
Jessie c. Knox yesterday commenced
an action against Mary Mcdonald to
enjoin the enforcement of judgment
for $331.65 obtained by Mrs. Mcdonald
last March, because Mrs. Kncx has an
offset judgment against Mrs. McDon-
aid for $21S.35. obtained in March, 1898,
the latter judgment being unsatisfied,
except to the amount of Sc. In another
suit in the district court between the
same parties, the defendant Mrs. Knox.
got Judgment for s23 costs. which also
remains unpaid. Mrs. Knox further
says she has a deficiency claim on 2,
mortgage against Mrs. Mcdonald ior
$3.50, and she asks judgment for that
amount and the other sums named as
offsets against Mrs. McDonald's judy
ment, and that the latter be restrained
during the tendency of the present
suit from attempting to enforce her
Judgment. Judge Clancy issued a re-
straining order.
The Montana Smelling company, one
of the defendants in an action brought
by the Anaconda Copper Mining COM
pany, yesterday filed its answer and a
cross complaint for $4,000 damages.
The suit arises over the smelter built
at Twin Bridges by the defendant COM
pany, and the latter alleges that the
Anaconda company contracted to put
in lead smelling plant for $4,000, AID
guaranteed to make 1t work success
fully. 1t is claimed that the plant
never did work, but the defendant, be-