The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-01-22
THE EMPORIA AFFAIR.
The Excitement Over the Sale
of the Martindale Property.

"A QlSDaIcn EI1pO1Ada SATURDAY
night says:
About $50 of the depositors of the
defunct First National bank met this
afternoon in the court house to take
some definite action regarding the sale
of the property of William Martindale,
who was forced into bankruptcy
through the failure of Charles Cross !
The meeting was called to order by
John Johnson, chairman of the deposit
tors committee.
THE depositors' committee reported
through its temporary secretary. Geo.
Plumb, who carefully reviewed the
movements connected with the bank
failure up to the present time. He read
letters and affidavits to show that
Trustee Battey had been approached by
other bidders, three of whom had larger
bids than the one accepted from Calvin
Hood and George Newman, and that
they were refused consideration. He
said that he had Judge Carver of To-
peka come here the day that Major
Hood promised to deliver the deed Of
the Martindale property on payment by
the depositorS' committee OF $41,O0O ana
interest to date of deed and the delivery
of a bond obligating the committee to
pay to the depositors within one year
the sum of $4,000 additional.
Mr. Plumb said that Major Hood
had failed to carry out his agreement,
insisting instead that he (Hood) not the
depositOrs should be paid the $4,000 in
addition to the 1900 paid by him Tor
the property.
Charles Harris then spoke in defense
of Major Hood. He charged that PLUMB
had asked Hood not to bid on certain
mineral lands in order that Plumb him
self might secure them. Plumb denied
the statement.
Resolutions were adopted demanding
that the property be decided back TO
said Battey as trustee without further
consideration than the $4,000, together
with the interest acCTUin2 during the
time said amount has been invested; or
that it be conveyed to the committee
representing the depositOrs of the First
National bank of EmpOria for the con-
sideration of 100000 as heretofore pro
posed.
Charles Harris, who is one of the
depOsitorS and representative from this
district in the legislature, declined to
7.Another resolution was adopted
authorizing the depOsitOrS' committee
to bring suit to set aside the sale, and
in the event of failure, to request the
| receiver of the bank to commence pro-
ceedings against Mr.. Battey's bonds
men,
Trustee Battey announces that he
Will bring a libel suit against PIumO
and others for charging him with any
Irregularities in connection with the
sale of this property.
A State Journal representative has
endeavored to learn the important facts
in this matter and in inVeSUiga ting it
number of entirely new phases are put
upon the case. This is mainly because
at the meeting in Emporia on Saturday
efforts were made to allow only one side
of the case to be heard. Representative
ChaS. Harris, one of the depOsltors, was
objected to when he spoke and only
with the greatest difficulty did he sue
coed in getting his statement before the
meeting. He was hOWled down, but
stood his ground.
Afterward Mr.. John Madden, who had
Af1aa
meeting and state the majors side of
the case, was not permitted to talk and
absolutely refused an audience. Mr..
Harris, it is learned, is a depositOr who
was interested to about the same extent
in the bank failure as was George
Plumb, both having about $500 in the
bank at the time of the failure.
There is no doubt that Mr.. Harris
sensational statement about George
Plumb is true. 1t is given on the best
of authority that Mr.. Plumb went to
Major Hood and asked him to not bid
on some Kansas and Missouri Coal and
Land company stock held by the bank,
Plumb saying to Hood that if the latter
would not bid the stock could be bought
at a low figure. Plumb saying to Hood
| that he would then give him the priv
ilege of taking half of the stock at the
/ price Plumb might pay.
| To go into the history leading up to
! this excitement, Senator r. T. Batty
| of Florence was agreed upon as trustee
to sell the real estate of VIM. Martin
! dale for the benefit of the First Ma
| tional bank to which Martindale was in
| debted. The appointment of Batty was
agreed upon by Mr.. Martindale and all
| his creditors Batty made a personal
! inspection of the real estate, estimated
| it's value at $37 900, concluded that it
! was best to sell it in a lump. close it up
| quickly and not dispose of it in a man.
ner that would require several years
| and compel the maintenance of the re-
! ownership with all of it's expenses until
| the lands were all sold.
| This decision of Mr.. Batty was con-
/ CURED in by every one of the Martin
/ dale creditors. A bid was received
! from J. O. Patterson for $40 600. A
/ meeting of all the creditors of Martin
! dale was called and all with the ex-
/ ception of Ford Harvey and H. Miller
1 voted to instruct Batty to sell the prop
/ erty for SAC, 900 if he could do no better,
/ but not to let the $40, 900 offer get away
AR. Miller wished time to examine
the property. He did so later, but did
4 not make a bid. Mr. Harvey to whom
/ Martindale was indebted about $4,000
meanwhile returned from Europe and
/ intended to examine the property. The
| trustee, however, decided that he would
! advertise for bids and did so. Major
/ Hood put in a bid of $41 000 but after
wards was informed by Mr.. Batty that
! on account of an injunction he could
not accept any bids at the present. The
trustee asked Hood if he wished the
! bid to stand and was told yes Mean
while it was decided the property should
| be sold under the supervision of the U.
/ S. court. Mr.. D. S. Miller went to Judge
Hook, represented the depositors and
urged that Judge Hook approve the
sale at $4,000. not knowing that even a
! bid of SAL coo would be offered.
Major Hood says that on January g.
| Mr.. Batty called on him and said that
. the creditors of Martindale, including
/ the receiver who represented the stock
! holders, Judge Cunningham Who repre-
J scented a large number Of claims. Ford
! Harvey and others all Joined in the re-
/ quest that the United States court or
der the trustee to accept his bid of SAL
II 600 and receive the cash for the same
/ Il then" said Major Hood, with Geo
! W. Newman who Joined me paid Mr.
Batty $1,000 with the understanding
/ that all the creditors were not only sat
isfied, but had urged the receiver to
make the sale on my bid A few DAYS
4 afterwards, learning that some of the
depositors of the First National bank