The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-08-08

is. Lyman and J. G. Waters
Accuse D. b. Hite.
Federal Judge Wouldn't Allow
One to Be Entered.
Attorney Herrick Says Company
Will Be Ex0nerated.

At Leavenworth Thursday Judge
Hook of the federal court refused to
grant a decree in the Kansas Mutual
suits allowing the Phillips case against
the company to be compromised.
This was q move in the case OF tha
policy holders suit against the conf
pany to prevent the Reorganization of
the company. Capt. J. g. Waters, at
torriey for J. B. Hyman and others,
made = statement that another COM M
In addition to the capital stock Tor the
assets of the company.
Rossington, Smith & Histed In
formed the court by letter. on behalf Of
they wished to be heard. Captain
Waters started considerable excitement
In the court room by making his pro-
test.
Captain Waters said: Our firm acts
as solicitors for Mr. McWhirk in q case
making almost the same charges as are
In the Phillips case, and we protest
this Philips case on the bill in an
swer. We charge that it is collusory
and for the private advantage of Mr..
H1te and the insurance company and
probably for Mr.. Hite's client. In this
case the question was raised by the de-
PENDANTS at the commencement of the
suit that D. r. Hite was incapacitated
by reason of his previous employment
by the defendant from appearing in or
ant Phillips, and that it would be an
act of bad faith for him to continue in
the prosecution of this suit. This mat
ter was referred to N. II. LOOMS az
This report has never been made, and
as we understand it no order OF the
court has been made abrogating the
reference. Shortly after this Mr.. Hite
commenced a libel suit for $4,000 in the
district court of Shawnee county by
reason of the statements of the defend
ant insurance company in this suit.
We would suggest that these are facts
from which might be drawn the infer
ence that In an agreement to try the
case upon the bill in answer Mr.. Hite
and the insurance company had come
to some conclusion and understanding
as regards their personal affairs which
would be settled at the same time
I'VE further understand that Mr.. Hite
has made the remark that Mr.. Phillips
had received personally, or was to re-
ceive, receipt for his assessments for
the next two years as his consideration
for the consenting to this scheme and
which was wholly personal to himself.
We further call the attention of the
court to the fact that in this case grave
charges were made against the insur-
ance company and it's officers That
the insurance company had abandoned
its business authorized by its charter
and was conducting in violation of law
a business of insurance that was not
authorized by it's charter and which was
q departure from the purposes for which
1t was created. That the officers of the
breaches of trust and had diverted and
used unlawfully funds belonging to the
insurance company which were sacred
funds and not to be entrenched upon or
the purposes for which they were cree
ated.
Il think it proper to further cali the
attention of the court that Mr.. Hfte has
in his pocket money from two men who
were his clients as we'll as mine, who
had paid him for his services in this
suit while he has gone to work and
made this secret agreement with the
insurance company without informing
his clients of its purposes to carry it
out without them having any knowledge
of it whatever
At this point in the statement Judge
Hook interposed and said, TT might be
well to name these gentlemen
Mr. j. 5. Lyman arose and said, "Mr.
Waters, name me as one of Them
Mr. Hite jumped to his feet and with
Almightys sake sit down, Hyman, for
God Almighty's sake sit down. You
don't understand this move at all. If
you did you would be perfectly satis-
fed"
II won't sit down." shouted Hyman.
you have $500 of my money You're
scoundrel and 1 propose to stop you
from practicing law any more If 1 can"
Hite was pale but he made no answer
to the outburst of Lyman and the court
took no official notice Of the episode
Mr.. Hite said he had not gone to
Leavenworth with an idea that charges
of personal nature would be made
against him.
Judge Hook said to r. T. Herrick,
DO you wish a decree which will bar
the other policy holders from Investigate
ing the charges of embezzlementa against
the officers?"
Mr.. Herrick said, Eyes, that's what 1
want"
Judge Hook said. "a decree Of that
kind can not be entered by this court
until after a thorough investigation of
the affairs of this company and these
charges by this court"
Mr.. Herriek said, "Your honor we
have answered under oath showing
where every dollar has been expended
be great expense to make an investf-
CATION and it will be necessary to put
two witnesses against, everyone OF these
statements made under OATH"
1.-THE court has nothing to do with
that" replied Judge Hook, 1.-THE investi-
cation will be made
Attorney r. T. Herrick was asked by
a State Journal reporter regarding the
case.
ssThe Judge did not grant the decree
yesterday" he said. HE has taken the
matter under advisement and informs
us that he will inform us Of his corclu
sions In the case in a week. He has
returned to Michigan. I feel confident
that when the case is eventually settled,
the insurance Company will be vindica-
ted
The officers of the company say that
the charges of Attorney Waters are un-
true, as well as unjust and irrelevant:
that there is no decision to reorganize
and will be none pending the decree
Travelling in an Auto.
IF'rom the London Autocrat.1
We went up and down the crowded