The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-06-07
BIC LAW SUIT.
Opening Skirmish in Hood Mar
tindaIe Case.
Former Vice President Of First
National is the Plaintiff.
WOULD SET ASIDE SALE
Claims $5O,5OO Was Not
Enough For His Property.
AlsOAsks For Damages Amount
ing to $3.50

The arguments on the motions in the
Martindale case in the district court
were con menced this morning. The
case is that brought by William Mar
tindale, of Emporia, to have the judg-
ment Of the federal court regarding the
sale of land made by the receiver of
the First National bank and ordered by
Judge Hook, set aside and also for $685.
900 damages.
The case is virtually Martindale
against Calvin Hood, who bought the
land; I. Z. Lambert, one of Hoods at
tcrneys and also U. S. attorney, and
R. T. Battey, trustee. The attorneys on
the Hood side are Col. c. n. Sterry, Of
Los Angeles. Ferry & Doran and Gleed,
Ware & Gleed of Topeka, and John
Madden of Emporia. On the Martindale
side are Rossington, Smith & Histed,
Carver & Larimer, A l. Redden and
A H Horton.
The suit grows ont Of the assignment
of 5000 acres of land by Martindale at
the time of the failure of the First Ma
tiOnal bank of Emporia. Martindaie
was indebted to the bank in the sum Of
S1l5000- The principal assignment he
made was the 5000 acres Of land. Ford
Harvey was a creditor to the extent of
$4,000. He brought suit in the federal
court to enjOin Battey from selling the
land on the ground that he was about
to commit fraud by selling it to his
friends for less than 1t was worth. The
court was asked to take charge and to
issue a restraining order against Battey.
Nearly All the CIeUlLOTS entered their
appearance and became parties to the
case. The court entered into a stipula-
ton with the creditors that they should
each attempt to determine what was
the highest price the land would bring.
Eight days was given for them to make
the report and the report was made
that the bid Of S41, 900 made by Calvin
Hood was the largest. The court or
dered Battey to sell the land for that
amount. AT that time Morton Albaugh
was receiver of the bank. A special
agent and lawyer were sent from Wash
ington to EmpOria by the comptroller
OF the currency and they made a report
that Albaugh had no right to become a
party to the case in court and to agree
to the sale of the land and that the
comptroller must approve 1t to make
the title legal. The representative from
Washington agreed that SO 500 addition
al should be paid by Hood before the
comptroller would approve the sale.
Hood paid the money rather than have
litigation. Two years elapsed and Mar
tindale filed a suit in the Shawnee DIS
trict court against Battey as trustee
and Hood and his attorney, Lambert
and E F. Brown, the receiver who sue
ceeded Albaugh, and banks and indi-
viduals who were creditors, and claim
ed that the land WIS worth SAC, 600 and
that Lambert and Battey and Hood
conspired to sell the land for 81, 900 and
that they had accomplished it. He said
his debts amounted to $4,000. In the
that the judgment of the federal court
be set aside and the deed for the land
issued to Hood be cancelled and that
further he be awarded $88 600 damages.
The creditors then petitioned the court
that If this is done that the money for
damages and the land be applied on
the payment of their claims. Demur-
rers to the Martindale petition were
filed in the district court ant the argu-
ment was made upon them.
In the opening argument J. W. Gleed
said: This suit was brought by Martin
dale. There is a cross petition filed by
Brown who succeeded -Albaugh as re-
ceiver OF the First National bank at
Emporia- We maintain that Albaugh
to all intents and purposes is before
the court and Brown is in his place
here in this case. In the cross petition
it is stated that Albaugh became a
party to the suit and that Albaugh and
others filed a statement in the federal
court that the offer of c. Hood was the
best that was made. We say that this
man Brown stands in Albaughs shoes.
It is not charged that Albaugh COM
mitted any fraud nor was in the con-
spiracy Albaugh is unimpeached by
the plaintiffs and defendants. If they
have charges against Albaugh they
must make them and the court can rot
imply them. Albaugh comes here by his