The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-04-29
MARTINDALE ANSWERS.
Emporia Banker Gives His Side of the
Controversy.

VIM. Martindale, vice president of the
defunct Cross National bank at EN-
poria, by his attOrneys,L- B. Kellogg ana
c. B. Graves, has filed his answer TO
the petition in the suit filed against him
in federal court by United States DISTRICT
Attorney Lambert, on behalf OF Nor
ton Albaugh as receiver of the bank,
for $16O00O which is claimed to be due
the bank from Martindale.
AS the criminal indictments which
were found against Mr.. Martindale by
the federal grand jury cover the same
points as those in the civil action, the
answer probably outlines the defense
that will be made by Mr.. MartindaIe IN
the criminal proceedings He admits
that he is liable to the creditors OF the
bank for the amount of stock he had in
it, $34, 900. but claims that there is $780,
900 due him from the bank, which would
leave a balance in his favor of $4,000.
He makes a general denial of the al
legations of fraud which are charged
against him, and then sets forth his
claims regarding the $50. 600 which he
alleges is due him from the bank.
The civil case will probably come up
in the United States district court here
some time early in the fall, but the
criminal suit is set for hearing at Leav-
enworth in October.
The following is the answer which Mr..
Martindale makes in the civil suit:
''First-The defendant admits his
stockholders liability set out in the
first cause of action, but denies his
liability on all of the other causes of ac-
ton.
"Second-This defendant at the re-
quest of c. S. Cross in 1898, procured
from the Eureka bank, of Eureka, Kan,
upon his own individual obligation, the
sum of $4,000 in cash, which, at the re-
quest of Cross, was delivered to the
First National bank of EmpOria, and
used by it. This bank is indebted to the
defendant in that sum, and this defend
ant is entitled to have the same set off
and applied as a credit in diminution of
his stockholders liability.
'Third-That on October 8, 1898, this
defendant, at the request of c. S. Cross,
signed his name, w. Martindale, to a
note for $50 900, payable to the order of
sixty days after date, thereby personal
| ly Obligating himself. The First Ma
tional Bank of New York has sued the
defendant to recover on that note BY
the closing of the First National Bank
of EmpOria, this note was never paid,
and the defendant is entitled to an Off
set against his stockholders liability on
account of said note for 100000
''FOurth-That in November IA, 1898
this defendant, at the request of c. s.
Cross, Endorsed note for $4,000 to the
Fourth National Bank of ST. Louis He
is now being sued by the bank for that
amount. BY reason of this, the defunct
Emporia bank is indebted to the de-
PENDANT for that amount, and he is en-
titled to an offset against his stock
holders liability for 100000
The fifth defense is similar to the
fourth, except that it relates to an addi-
tional $4,000.
Wherefore the defendant prays judg-
ment in the sum of $50, 900, and that so
much thereof as may be necessary to
fully pay and satisfy this defendant s
stockholders liability, be applied there
on as an offset in favor of this defend
ant, and the remainder thereof be al
lowed and established as a claim
against the plaintiff as receiver to share
1 in the dividends of the bank"