The Savannah morning news., 1901-07-07
WILLIAM LUDDEN CLAIMS AT
LEAST $4,000.
ASKS FOR INJUNCTION.
CHARGES THAT l.. 81 b. MUSIC
HOUSE IS INSoLVENT.


the Company-Was Forcibly Dis
possessed After Stay of Thirty
Days-The Case Set for Saturday.
Defendants Say They Are Solvent
and Will Fight.
In the Superior Court yesterday Judge
Falligant granted William Ludden a
temporary restraining order in which The
Ludden and Bates Southern Music House
is enjoined from making collections on
certain piano and organ contracts amount
ing to about s57 900. The plaintiff alleges
that the defendant company is insolvenL
and is indebted to him in an amount not
under $4,000.
The petition for an injunction was MED
through Adams, Freeman. Denmark and
Adams and Is against the Ludden and
Bates Southern Music House and the
Mathushek Piano Company. The music
house is incorporated under the laws of
Georgia and the piano company under the
laws of Connecticut. The petition flied
in court and argument upon which will
be heard by Judge Falligant Saturday
morning, is a lengthy one and contains
over forty paragraphs and allegations.
1t is stated that after negotiations, by
reason of the fact that the Music House
was largely indebted to the Piano Com
pany, and to the petitioner, and was I'M
able to meet it's Indebtedness, a tripartite
agreement was entered into between the
two defendants, and Ludden, on Aug. 16.
1899. 1t appears in the agreement that
the Music House was indebted at that time
to the Piano Company in the sum of $780,
161. SO, and to Ludden in the sum of
$91, rs. 1t is charged that the Music
House was then unable to meet it's in
debtedness, and is now insovent,
The plaintiff alleges that as soon as the
agreement was executed, he assigned and
delivered to Henry S. Parmelee certit-
Gates representing two-thirds of the cap
ital stock of the Music House, procured
the resignation of ]. A. Bates and j. d.
Murphy, two of the companys directors,
and that Henry C. Parmelee and c. c.
buckingham were elected in their stead,
all in accordance with the agreement. AS
further agreed in the contract at the first
meeting of directors in September, 1899,
Parmelee was made president of the
Music House.
IL is charged that about April, 1900, the
music and merchandise stock was materi-
ally reduced without the consent of Lud-
den, to whom it had been pledged as Sc
curity, under the agreement. The differ
ence in the valuation of the stock by lbs
reduction is estimated at nearly $3.50.
1t is further shown that under the DON
tract the Indebtedness to Ludden was to
be paid off by payments of 81, 900 per month
for one year, beginning June !, 1899, and,
after June l. 1900 payments of 81, 800 a
month were to be made until the indebt-
pdnpSS maid in fulI agreed
that as often as payments were made to
Ludden the Piano Company had the right
to draw 50 for one paid to the plaintiff.
The petitioner recites that up to the first
of last April the money was paid, and
that then $3.50 was paid on account of the
April payment.
The plaintiff charges that between June,
1899, and April, 1901, the Piano Company
received about $4,000 more than it was
entitled to under the agreement and that
1t is continuing to collect more than it
is entitled to, in total disregard and in
violation of the rights of the petitioner
as a creditor of the Music House. 1t is
further shown that Henry s. Parmelee
is president of the Music House and the
Piano Company and that Henry F. Parm-
elee, his son, is vice president of the Mu-
sic House.
1T is commended that the Mathushek
or under the conditions agreed upon. The
prices were raised and payments were
demanded before they were due under
the agreement 1t is charged that be-
cause President Parmelee's pecuniary in
terest in the Piano Company is larger
than in the Music House the company
has received the $4,000 which 1t is not
entitled to under the contract. 1t is
further charged that the Music House
ok ffod I,xyI racfdav,t
to purchase pianos and organs of other
makes and styles, such as were needed
proftably to prosecute the business. 1t
is also commended that the Music House
failed to pay to Ludden the amount due
him under the contract and Still fails
and refuses to pay him.
The Music House is charged with hav-
ing failed to carry out one of it's obi
cations when it did not assign to Lud-
den piano and organ lien contracts on
which amouts are due. 1t is cont tended
that there were other violatios of the
contract, and 1t is charged that Parme-
lee has not conducted the business for
the benefit of the creditors Of the Music
House, save only his Piano Company, and
his individual interest, and that the
rights of Ludden have not been regarded,
and that no effort is being made to sub
serve them in any way.
1t is related that the Music House be-
ing in default, Ludden, on April 8, last,
through his attorney in fact Jasperson
Smith, took charge of the music mer-
ohandise and fixtures, together with the
books of accounts and money on hand,
contained In the store at No. 140 Bull
street. 1t is claimed that the property
taken covered everything in the building,
save the pianos and organs, and things
connected with that business 1t is alleged
that the petitioners attorney Smith
placed in charge of the property NJ Tenn
pie Taylor, who remained in possession
thirty days. At the end of that time It is
charged he was Illegally and forcbly dis
possessed by the representatives of the
Music House, at the instance OF President
Parmelee.
IT is shown that on April 10 the plaintiff
wrote the Music House and notified them
that because they had broken the con-
tract the full Indebtedness was due md
that the piano and other contracts with
books and papers had been taken A
similar letter with 1913 shares of the stock
OF the Music House was sent on the same
day 10 the Plano Company. Ludden
AYERS that for many years the Music
House had been indebted 10 him. and the
course has been to transfer to him the
piano and organ contracts made with
the Music House. and due 20 II as Sc
curity for this Indebtedness. At the time
te tripartite agreement was made Lud-
4 20 huA