New-York tribune., 1900-12-01
RECEIVER FoR GUARDIAN TRUST.
Ex-Ir-DGE BLACK. OF MISSOURI. APPOINTED
u SUIT OF JOHN n. GATES
hND OTHERS

S. Louis Nov. 30-Judge Amos Thayer, in the
United States District Court, has appointed F. NJ
Black, OF Kansas City. receiver OF the Guardian
Trust Company OF which A. +. Stilwen is presi-
dent. The appointment made on Judge
Thayer's decision in the suit recently brought by
J ". Gates, Of Chicago. and other stockholders
The receiver was formerly Justice OF the Missouri
Supreme Court.
In his opinion Judge Thayer says:
The proof shows with reasonable certainty that
the officers and directors of the defendant company
porations 10 engase In various enterprises OF
hrhly speculative character: that funds of the
company 10 large amount have been invested in
the stocks and bonds Of surh concerns. which had
AZ the time no market value; that money IN con-
siderable sums hac been loaned 10 such companies,
other occasions without any security; that some
- -. 49, ,,,S,,- 80 20 t,,,,st5 ,Saroi, "a Lse1
wholly lost. while uthcr Of such enterprises are
is doubtful and uncertain
appears 10 have been such identity I'm personnel Of
,.oyeHTnirg bS5V ~ ne tTl1st ,or9nsnV fhat il is
were fairly considered as properly guarded in any
In addition to the acts aforesaid. the proof shows
that The defendant company has made large in
vestments IN real property. apparently without "A
shadoW oi authority unoer lts chaiIer; sggh l uh-
auihorzed Investments having resulted IN ths
locking up of The company available means and
Furthermore, me Court entertains doubt that
The defendant company has PAID ne and probably
not earned, such payments being made for the. pur
pose 81 allsylug suspicion 10 the condition Of
the comtanF and creating a false impression that
n was in a prosperous condition.
The Court expressed the opinion that the act
creating trust companies does not authorize the
acquisition Of securities by such companies either
investment collateral for loans unless
they have an ascertainable market value and may
be properly termed Investment securities and
finds thar IL Is unsafe for the company 10 continue
fhe further transaction Of its customary business
until u has realized upon some Of It's assets and
liQu!dated SIS Indebtedness. The receivers bond
WAS placed At 100000.
Kansas City No. Nov s0-The petition for a re-
ceivership was filed in Kansas City on October %
last-the day before the stockholders We're to have
held a meeting TO elect board Of directors
The Gates petition also asked FOR injunction 10
prevent the holding OF the meeting Judge John f.
PAiiips granted the injunction and later date
;or hearing on the reoeivershlp question.
The petitioners cOutendvd that StilReI took ad-
vantage % them in the character Of securities
placed m a reorganization OF jhe company The
bonds OF The old kansas City. Pittsburg and Gulf
kailrcad nOW tue Kansas City Southern, in Wbirf
Gates Is Interested figured IN the bll and the
contention mace that the stock holders were IN
danger OF losing $g1.Oo0 II Stilwen were allowed
40 carry out his plans.
when apprised OF the appointing OF a receiver
to-day Mr. Sulwe declared that he had expected
the action and was preparing 10 form a new com.
pauy. which viii, he declared. finance the Kansas
City. Mexico and Orient Railway. which he IS pro
noting.