The Washington times., 1902-06-25
Decision This Morning
on Appointment of
Receiver.
Mr.. LAMBERT'S AFFIDAVIT
Majority Directors Said Not to Object
to Court Taking Charge of Affairs of
Company for Purpose of Straighten-
ing Them Out.

GERS of the Standard Butterine Company
as to its management resulted yester-
DAY in the affairs of the organization
being thoroughly ventilated in the To-
cal courts.
AS a result of a suit filed against the
Standard Butterine Company on Mon
day by Mr.. Charles F. Nesbit, to re-
cover $4,000 claimed to be due on a
promissory note. he later in the day
filed petition asking for the appoint
ment of receiver to take charge of the
assets of the company. Soon after the
suit ct law was filed a meeting OF a
majority of the board of directors was
held, and it was decided to confess
judgment on the note and also not to
oppose the appointment of a receiver.
1t appears from what took place in
Equity Court No. l, before Justice
Hagner, when the matter came on for
hearing that Mr.. Walter P. Wilkins,
president of the Standard Butterine
Company. was not consulted about the
matter Of the appointment of a receiver.
AMI he was there to oppose such ac-
tiol. He was represented by Attorney
Henry E. Davis, while the company was
represented by its attorney, Wilton
j. Lambert.
Decision Expected Today.
The matter was not finally disposed u
and Justice Hagner stated that he would
announce his decision this morning On
the petition to appoint receivers &c take
charge of the assets of the company.
Attorney Daniel o'Donohue. represent
ing several stockholders, appeared 1T
the hearing and asked that on behalf of
his clients they be allowed to inter-
vene. in their own interests. They also
supported the petition for the appoint
ment of a receiver.
In reply to the opposition of Mr.. Will
kins to the appointment of q receiver or
receivers to take charge of the assets
of the company. Mr.. Wilton J. Lam
bert, the secretary of the organization.
filed the following affidavit, which was
read to the court:
Mr. Lambert's Affidavit
81, Wilton ]. Lambert. on oath say that
am the duly elected and qualified sec
retary Of the Standard Butterine Com
pauy: that as such. under the bylaws.
] am entitled to the custody of the
common seal of the company that said
seal had been uniformly kept in the
safe at the company's Office, ct Langdon,
o c., under my official custody; that on
June 23 1902, presuming said seal was
in its proper place, l visited the Office
of the company. in order to obtain the
same, and found that the safe had been
opened and the seal taken therefrom:
that l was informed by clerks in the
Office that the seal had been taken by
MIR. wilkins and clerk, Mr.. Donnelly,
a short time before, and that 1t was
then supposed TO be in Mr.. wilkins
private Office at 20S Ninth Street north
west, Washington D. c.; that l at once
visited the said private Office of Walter
P. wilkins. there and then meeting Mr..
wilkins. and demanding of him the seal
of the company, and receiving response
from him to the effect that the seal was
not there, and he did not know where
it was.
81 further say that as soon as the
rotice of the proceedings instituted
on the law side of the court by Charles |
r. Nesbit were brought to the attention
of myself and the vice president. Mr.. |
Harrison Crook, we Immediately called |
together such members of the board OF
directors as We could reach and had |
meeting at which the resolution ap-
pended TO the statement of Harrison |
Crook heretofore fled in this cause |
was passed and was duly signed by moro |
than a majority of said board, acting |
as they believed and still believe in the |
interests of the company, and the stock
holders thereof.
In Financial Difficulties.
az further say that for some time
the Standard Butterine Company has
been in financial difficulties, and been
much pressed for money; that a great
deal of money has had to be borrowed,
and that some weeks ago the directors
became so anxious concerning the fnan-
cial condition OF the company and man
agement OF the same by the president Of
the company. that they employed an ex-
pert accountant to furnish them with an
accurate statement, as far as might re
possible, OF the true condition OF the
company; that go far they have been
advised that the company is indebted
upon promissory notes to the extent of
s171 ,674.5i; that In addition to this there
is an amount OF floating Indebtedness,
the exact amount of which ] am not
at present 6 !vised.
81 further say that II has been the
endeavor of the board for some months
TO try to place the company's business
upon a substantial basis. but that they
have been much handicapped by reason
of inability to secure recognition of
their orders by the executive head of
the company; that the general supervi-
sion OF the company has been presum-
ably In the hands of the executive conf ,
mittee. but that they have received very
little attention from the president OF the
company. and frequently have had their
directions and orders violated: that as
an incident thereof, not long since they
directed that no branch houses should
be opened, and almost Immediately after
such direction. the president of the com
pEny proceeded TO Camden, n. j.. assum-
Ing TO act on behalf of the board, and :
purchased a branch house at a cost OF
4. COO and that since the purchase OF
laid branch house. there has been loss !
to the company as aforesaid IN said in Z
stsnce Of about S5,f00.
Money Raised on Notes.
THAT the consideration for 81 900 above
referred 10 was made up to the party 4
n question by crediting a bill which q
be owed TO the company to the extent o; =
Z. 600: that some weeks ago $4,000 was
.aised upon two notes of the company, =
ndorsed by certain members OF the D