The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-03-15
payment of $500 to Jewett e. Jeyett as at
torneys' fees was concealed from the cred


After the creditors had consulted about
the matter to some extent, and after most
or them and their representatives had left
the courtroom, WV. Watts, one of the de-
PENDANTS here, drew up an order to be en-
tered by the Floyd Circuit Court. That or
der was an effort in one sense TO bind the
creditors who were present at that meet
ing, but without the knowledge of any
other creditor. and without the knowledge
OF any representative of any other creditor,
and, at the procurement of the defendant
w. w. Waits. that court not only author
lied the continuance of the business of the
corporation and the completion of certain
contracts, but enjoined all creditors from
proceeding in any other court or manner,
except by intervention in that proceeding in
that court. 1t was declared by Mr.. Watts
at that meeting that the purpose and OBJ
Ject and scope of the proceeding in that
court was to wind up the affairs of the Nj.
Zier Company, and TO do this as near in
conformity to the bankrupt law possible
'On the 9Th day Of February, 1903, three
creditors of the M. Zier Company corpora
ton, representing the necessary amount
the statutory amount of claims, filed pc
tition In bankruptcy in this court On the
iith day OF February, 1903, these same cred
1tors filed In this court a petition asking
this court to appoint receiver for the al
legged bankrupt, NJ. Zier & Co. AS set forth
in the petition, matters and facts were
shown which at that time appeared to the
court to imperatively demand the appoint
ment of receiver, and the subsequent de-
velopments In this case have conclusively
shown that IL this court had not appointed
receiver at that time, and used every
e emo 70 get that property into, the posses,
nave failed to do its duty.
Common APPOINTED.
ION this 18th day of February. 1903, the
court, after due elaboration, appointed as
receiver of this court Frederick d. Con-
nor He WAS ordorad m fak a posoaccion of
the property of the corporation. NJ. Zier
e. Co., which company has since been adj
Indicated by this court TO be bankrupt.
The New Albany Trust Company was or
dered to refrain from any interference
with that property. Mr.. Conner went to
New Albany, filed a petition in the Floyd
Circuit Court on Saturday, Feb. IA, the
last day of the then term OF that court, in
which petition he set forth certified copy
or his appointment and the orders which
Judge Of the Floyd Circuit Court ignored
that petition. paid no attention to 1t what
ever, neither granted ii nor denied it, but
contemptuously continued Ii to the next
term of the Floyd Circuit Court, which
did not meet until three weeks thereafter.
On FEB. TO, 1903, w. w. Watts, the de-
PENDANT here. having obtained authority as
Circuit Court to appear here for that pur-
pose together with Henry E. Jewett, the
Company, the receiver appointed by that
court, appeared in this court. They OBJ
Jected that this court had no power to APP
appoint receiver that ii had no power TO
take possession of the property of this
bankrupt by summary proceedings.
i stop here simply to state that the
chief argument made by Mr.. Watts at that
time was that the receiver of the Floyd
circuit Court held by adverse possession.
1t was maintained upon that argument that
70 IA ha
session or this property out of the receiver
OF the Floyd Circuit Court because that
receiver held adversely. Counsel for the
defendants here who have argued the law
questions before this court upon this hear
ing have distinctly disavowed this conten-
tion- Mr.. Miller yesterday squarely stated
that there was no question of adverse pos
session in this case. After a full discus
sion Of this matter before this court on the
18TH and nth days of February, 1908, Henry
II Jewett as the vice president of the New
Albany Trust Company, and w. w. Watts,
the attorney for the New Albany Trust
Company, receiver, and the attorney for
the plalnt1n In that sultan attorney au-
thorized as he claimed by the Judge of
tnat court to present the matter here-vol-
unfairly, as the records of this court show
In open court offered TO turn this property
over to the receiver of the United States
Court. Both Mr.. Henry Jewett who was
vice president of the New Albany Trust
Watts, who was a lawyer, at that time
conceded, as Mr.. Miller stated here yes
terday. that the absolute right to the
possession of this property was in this
court. Thereupon these gentlemen, after
having conceded that the right to the pos
session of this property was in the receiver
of this court, after voluntarily offering to
turn this property over to the receiver of
TINS court, returned to the city of New AL
bany.
PROPERTY TURNED OVER.
Two days after, on Thursday morning
Feb. 10, in pursuance of that voluntary Of
lhar
over to Frederick ID. Connor, the receiver
of this court. the property and plant of
this bankrupt corporation. Mr.. Conner took
peaceable possession of that property as
the receiver of this court. entered into DOS
session, remained in possession, caring for
IT as he was bound under the law to do
until Friday night, the 10th of February
when, after dark Charles D,!iKelso Paw
1opd q. Morris, Claude Sittason and some
others went to this plant and forcibly. in
the night time, elected the receiver of this
court and took violent and forcible pos
session of that property. Tbereunon the
receiver having filed written statement
mere or the facts. citation was issued to
tnese gentlemen, among others to show
cause why they should not be punished for
a contempt of this court in interfering with
the peaceable and lawful possession of
sne properly OIL this bankrupt in the re-
The court here devoted its attention to
the law In the case and from a great nile
OF law books in front of him quoted au-
thoritleS on the question of Jurisdiction.
he closed with a review of the evidence
regarding the alleged acts of the defendants
as follows:
EVIDENCE REVIEWED.
so far the defendant Sachs is con-
cerned. the evidence clearly shows that he
took an active part in the proceedings
which eliminated in the removal of the
New Albany Trust Company by the Floyd
Circuit Court and in the appointment of
Mr.. Kelso as the receiver of that court:
that it was upon petition largely pre-
pared and sworn to by him that the court
acted in removing this New Albany Trust
Company and appointing Mr. Kelso: that
he was there during the consultation with
reference to the matter: that he aided and
assisted In planning the line of battle for
taking the property from this receiver; that
cess issued to the sheriff under which the
sheriff acted: and this court has no doubt
whatever that he was at the plant of M
Zfer * Co. Saturday afternoon after Kelso
was in possession with Keso looking over
the plant and making preparation with re-
gard TO the running of it. 1t has been said
here in argument by counsel that there is
an irreconcilable conflict in the evidence.
II is so stated by counsel on both sides
is not their province to say where the truth
lies and who has committed perjury 1T
is the province o. this court to say where
the truth lies and this court believes that
ID. A. Sachs In many important and ma
terial particulars committed willful and