Omaha daily bee., 1899-07-27
EMERSON WINS his FIGHT
Famous Stimmsl Case Decided in Favor Of
the 0o-Partnership.
PROPERTY is wRoNGFUtLY CONVERTED
Result Means that Nearly 100000
May He and Distrib-
uted Among the to
whom IL Belongs.


Few decisions that have been handed
down in recent years by the district bench
affect so many different people as that which
was delivered by Judge Dickinson yesterday
ir the famous Emerson Stimmel case, in
volving the disposition OF the assets OF the
Stimmel Seed company, which failed in
Omaha nearly six years ago. When Stimmel
went under he had in his warehouses vast
quantities of seed that he had purchased
from Nebraska farmers and for which he
had not paid. When the crash came the
Omaha National bank and Montgomery,
Charlton G. Hall succeeded in getting pos
session of the property and selling 1t at
sheriff's Gale on account OF Stimmels per-
sonal obligations to them. This left the
farmer creditors out in the cold and to this
time they have never realized a dollar. This
was Just before the hard times, when a
dollar was as big as a cart wheel to the
average seed raiser, and the circumstances
aroused a public sentiment that made the
case notorious throughout the Missouri
Valley. The farmers declared that they had
been swindled, and during the crisis that
followed they we're the recipients of general
sympathy.
Eventually Frank T. Emerson, who had
become a partner in the concern just before
the crash, took the case into court on the
ground that the debts for which the prop
erty had been attached were Stimmels per-
sonal obligations, and had nothing to do
with the business OF the firm. He contended
that the seizure of the property was conse-
quently illegal, and that it had operated to
defraid the creditors OF the copartnership
who were entitled to the benefit of whatever
assets remained. The farmer creditors to
the number of several hundred interviewed in
the case to protect their interests and so did
the Omaha National bank and Montgomery,
Charlton e Hall.
Long Fight I'm the Courts.
This was the beginning Of a protracted
and at times sensational litigation. The in
~terests that had secured the property made
a desperate fight to retain 1t and the fact
that fully 500, 900 was at stake brought
some of the most able attorneys in Nebraska
into the case. 1t was fought up and down
through the intricacies of the courts, and it
was not until the last term that it was
brought to a final issue. The evidence was
conclusively in favor of the plaintiff and the
farmers who had been euchered out OF what,
in those times, was a small fortune to each
of them. Every technicality that shrewd
legal heads could interpose was taken ad-
vantage OF, but the litigation was gradually
brought to the point Of adjudication.
The gist OF the testimony is reproduced in
the exhaustive decision that Judge Dickiu-
son has just filed. The court finds that on
January 6, 1894, the firm had assets that
amounted to $74, 992. 9S. OF these the biggest
item was the stock of merchandise at Oil
Jones street, in Omaha, which was worth
$37, 524.21. Additional stock in the ware
house at Waterloo was valued at 50, SOC 90.
There were accounts receivable that aggre-
gated $17,133.04 and the balance was COM
posed of notes, bills receivable, fixtures and
machinery.
1t is further found that the firm was not
indebted to the Omaha National bank, to
Montgomery, Charlton G. Hall nor to Phil
Stimmel individually except for the balance
to which he was entitled in the affairs of the
copartnership. None Of these parties had any
legal claim on the assets of the firm, which
should be applied to satisfy the copartner-
ship Indebtedness, of which the amounts due
to the farmers for seed purchased consti-
tuted the largest item.
Execution Illegal.
Continuing, the decision declares that on
January 6 assets that amounted to $40, 514.03
were seized by the bank and legal firm on
account OF a judgment that was against Phil
Stimmel as an individual and for which the
copartnership was not responsible. 1t is
decreed that the restraining order by which
the same parties prevented the receiver,
Frank A. Agnew, from proceeding at law
against them to recover the value of these
assets was wrongfully issued and that it
should be dissolved. 1t confirms Frank
Agnew as receiver in all his acts and now
instructs him to Immediately bring suit
against the parties for the recovery of the
assets that have been improperly converted.
1t finds that the total amount for which the
bank is responsible, including interest, is
now $S5, SS6.20, and that the amount for
which Montgomery, Charlton & Hall are
responsible is S5,714. 1t is explained that
the order by which these intervenors were
at one line allowed to withdraw from the
case has sacrificed the jurisdiction of the
court, otherwise the court would enter judg-
ment against them for the full amount in
this action. AS it is. judgment is entered
in favor of each OF the creditors of the CO.
partnership against the firm, and the re-
ceiver is instructed to proceed at once to
collect the assets and distribute them in
| satisfaction of thesa iudpmanta