Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1900-02-24
DISPOSITION OF ASSETS
Alleged to Have Fraudulently Abau-
dOned Ranch and Transferred
Property.

of Ph~ilipsburg filed objections to the fl
nal discharge of John and Herman Kaiser
who filed a petition in bankruptcy a short
time ago. The Kaisers were the owners
of a hotel in PhIlipsburg and the charge
IS made thai they fraudulently conveyed
and transferred their property for the
purpose of defrauding and cheating their
creditors.
The objections are made by Joseph A..
Hyde and James H. King, creditors ON be-
half of themselves and other creditors.
Among the charges enumerated IN the
objections filed are the following:
That said bankrupts have committed an
offense punishable by Imprisonment as
provided by the bankruptcy laws Of the
United States. That said bankrupts have
made a false oath in the schedule of prop
erty returned by them as all the property
belonging to them upon their application
to be adtudged b~ankrupts. That said
bankrupts have concealed assets from the
trustee appointed in said matter.
The creditors aLlege the facts to be as
follows:
After the filing OF the bankrupt petition
on the 18th day OF Sept. 1899 the cred
itors elected John s. Axtell trustee, who
was duly confirmed BY the referee Thomp-
son Campbell. 1t appears from the conn
plant filed in the case tina prior to July,
1893, John and Herman Kaiser owned q
lot and one story building in ~Philipsburg
and interests in the following quartz
lode claims: Boston, Montreal, New De-
parture, Black Rock, WEIGH, Hasmark,
Old Policy, Belle of the West and Minnie
mines and a ranch on Ross Fork of Rock
Creek.
Prior to this date John n Herman
Kaiser were the owners Of certain shares
Of the capital stock Of the M. & J. Kaiser
Water Co., of Philipsburg. Their exact
holdings are not known, but it is alleged
upon information and belief that it
amounted to about ltwo-thirds Of the CAPT
tai stock. At this time the Kaisers were
indebted to the First National bank Of
P~h.lipsburg In the sum Of SIT, 363. 46. Sub
sequent1y on january Is. 1894 r. A. Luke
receiver of the bank secured Judgment
upon said indebtedness for the sum of
81. 175.51. The Kaisers also executed to
Merrill & Hyde a promissory note for 3d.
1879 all Of which Indebtedness was as
signed to Joseph A. Hyde and James H.
King. 1t is alleged that no part of said
judgment or note has been paid.
The objectors atlege that for the pur-
pose Gf hindering and defrauding the said
creditors, the said John and Herman KAT
ser on September %. 1898 conveyed the lot
in Philipsburg. valued at $40, 600 to Mich
ael Kaiser for an alleged consideration of
$otOoVs ~ Is lis tllC5tu lHdl JOHH ANU
Herman Kaiser fraudulently abandoned
the ranch on Ross Fork and permitted
Michael Kaiser, their father. to appro-
pirate the same to his own use and that
subsequently they conveyed to Michael
Kaiser for the reputed consideration of
$1,000 the water right connected with the
ranch. TIL electors allege that no con
sideratiOn whatever passed between IA
Their and sons.
1T is further alleged that in furtherance
Of the fraudulent scheme to defraud the
creditors John and Herman Kaiser trans
ferred on July 1, 1898, their holdings in the
M. & ]. Kaiser Water Co., without any
consideration, whatever, to Michael
Kaiser. Mrs. Mamie Kaiser and Mrs. Jen-
ME Kaiser. This stock is alleged TO have
been of the reasonable value of $40, 900.
1t is also alleged that the mining claims
owned by the bankrupts were fraudll-
lently transferred to Michael Kaiser. the
said conveyance purporting to hav been
made to secure the payment of a note
dated July 30, 1893, alleged to have been
given to Michael Kaiser. also to secure
the latter as surety on a promissory note
executed by John Kaiser to Charles Mus
sigbrod, and also to secure the payment of
two prOmmissory notes made by John
Kaiser to Mary Schulz.
1t is alleged that these notes were frau
dulerIt in his that John and Herman
haLSeI were not indebted to NJ. Kaiser
and the notes were executed for the pur-
pose of cheating the creditors, and for
the purpose of encumbering the property
of the bankrupts. In September, 1898
Michael Kaiser secured a deficiency
Judgment against John and Herman
Kaiser fo. more than 50, 900 which he has
attempted to have allowed against the
said fbankrupts. The objectors claim that
the aisers We're not in%solvent at the time
Of filing their petition in lhankruntcv and
had more than sufficient property to liu-
uidate their Indebtedness and the court is
asked to refuse to discharge said bank
rupts and to order all matters staid until
the final distribution and trial of the ac-
ton brought by the trustee, TO recover
the above named property.