The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-03-15
Judge Ander.on.. statement

In his opening remarks he dealt with the
facts in the case. giving an exhaustive and
comprehensive history of it. Some time
prior to the 18th day of December, 1902"
said the court. "a corporation located at
New Albany. existing under the name Of
M. zier & Co.. became insolvent BY
series of fraudulent entries on the books,
by padding the pay. rolls NJ. zier, the xice.
president and one Of the largest stock
holders of the corporation. had stolen from
the funds of that corporation $500. About
the 18th day of December. 1902, he paid this
5000 over to one Charles L. Jewett, an at
torney at New Albany, who. with his
brother. II. E. Jewett composed the firm
of attorneys of Jewett & Jewett. of that
city. OF this money $500 was paid over to
Charles L. Jewett as attorneys fees for
services to be rendered to the NJ. Zier Com
pany corporation in effecting settlement
of some kind with its creditors. The 5000
was paid over to Charles L. Jewett to be
by him paid to the agent of Minnie Zier a
sister-in-law of Michael Zier, and large
stockholder in the corporation.
This money was paid to Charles L. Jew
EFT under such circumstances that this
court believes that at the time IL was paid
over TO him he knew the manner I'm which
the money was abstracted from the treas
ury Of this company, and knew the fraudu-
lent purpose for which IL was handed over
to him. On the 18th day of December, 1902
or just few days before that, Ryerson &
Son, OF Chicago, creditor OF NJ. Zier &
Co., received s., 100 of the funds OF this cor
poration. On the 18th day of December
Col. Charles l.. Jewett went to the city OF
Chicago and took with him this 5000. II
the agent OF Minnie Zier, Mr.. Meargel, who
lives at Minneapolis. should meet him In
Chicago.
PAID MONEY TO MEARGEL.
''It is indisputable that he paid that 5000
to Mr.. Meargel. in the city OF Chicago. on
the 18th day of December. 1902 At that
time, and for some time prior thereto
Charles l.. Jewett had been the attorney
and counselor and adviser of M. Zier & Co..
and especially its managing vice president.
Mr.. Michael Zier; knew all about its az
fairs. and, as the attorney and confidential
adviser of Michael Zier and the corpora
ton, he went to the city of Chicago at the
time he paid this 5000 to the agent OF Min
ME Zier, as he himself testifies, chiefly for
the purpose of procuring the corporation,
Ryerson & Son, to bring a suit against NJ
Zier G. Co. in the Floyd Circuit Court. at
New Albany, In order to have a recSiver
appointed and to wind up its affairs. While
in Chicago he made that arrangement with
Ryerson & Son. He called up his brother.
ephone and told him OF the arrangement
That night the agent of Ryerson & Son
went to Louisville. The next morning Hen
ry Jewett met with Watts & Watts, the
attorneys of Ryerson & Son, and IL was
understood and agreed between them that
a suit should be Immediately begun in the
Floyd Circuit Court. that receiver should
be Immediately appointed for all the as
sets and property for this insolvent corpor-
alton. and that the New Albany Trust Com
pany. in which Henry E Jewett and
Charles +. Jewett were both stockholders,
and of which Henry K. Jewett was the vice
president, should be the receiver. A suit
was commenced on the afternoon OF Dec.
90 1902. Summons was issued Immediate
ly Michael Zier. in pursuance 10 this
rangement and understanding, with his at
torney. Henry Jewett. appeared before the
Judge OF that court in chambers and con-
sented TO the appointment or agreed 10 the
appointment, of the New Albany Trust
Company as receiver of the M. Zier & Co
property.
FRAUDULENT PROCEEDING.
1T Is said that this was friendly suit
To the mind OF this court IL was fraudu-
lent proceeding. II was collusive. 1t was
born in fraud. and the subsequent trans
actions down there show that IL reeked
with fraud from beginning to end. In my
judgment that proceeding by which the
New Albany Trust Company was made the
receiver of NJ. Zier & Co.. an insolvent cor
pcration, was in substance a voluntary as
sgnment In which the insolvent corpora
ton selected the trustee. the purpose and
scope OF which was the distribution OF the
assets OF this insolvent and subsequently
adiudicated bankrupt corporation among
it's creditors. On the 18th day OF January
this receiver filed in the Floyd Circuit
Court an inventory, and what IL has been
pleased to here call a petition for instruc-
tions as 10 how 10 manage the affairs OF
the receivership. Creditors. such as ap-
peared TO be so on the books OF the Nj. Zier
company were notified by mail TO appear
in the Floyd Circuit Court on the 2ith day
OF January, at a creditors meeting. This
creditors meeting was the most remark
ahle meeting of the kind that this court
has ever heard OF Ii was heed I'm the court
room, and II is said TO have been presided
over by the Judge. The testimony Is. by