The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-08-08
RECEIVER GRAVES
MAKES SENSATIONAL
COUNTER CHARGES
Declares Western Realty Conn
pany Is Guilty of Fraudulent
Practices in Buying Savings
and Loan Stoeks-Johnson
Is Also Criticised.

Edward B. Graves, receiver of the
North American Savings, Loan and
Building association, yesterday filed his,
answer to the petition of the Western
Realty and Investment company, of
Minneapolis, who recently applied to
the district court of Ramsey county for
the removal of Receiver Graves, on the
ground thatsh he was not properly per-
forming his duties, that his expenses as
receiver were out of proportion to the
size. of the estate, and that his continu-
alton in the receivership was against
the interests of-the stockholders.
In his answer NJ Graves not only
specifically denies all the charges made
against him.. but sets forth number
of allegations which places the petit
TONERS and Public Examiner S. T.
Johnson in a rather unfavorable light.
There was to have been a hearing
yesterday upon the application for Mr..
Graves removal, but when7 the matter
came up before Judge Bum, who is in
chambers. julius Schutt, president of
the Western Realty and Investment
company objected to Judge Bum pre-
siding and filed an affidavit of preju-
dice, in which he asked that the mat
ter be heard by some other judge for
the reason that the affiant had good
reason to believe that on account of
the prejudice and bias on the part OF
Judge Bum the Western Realty and
Investment company cannot have
fair trial"
Upon the filing of this affidavit Judge
Bum postponed the hearing until Sept.
5, at which time some other judge Will
be in chambers.
Graves Makes Answer.
The answer of Receiver Graves to,
the application for his removal is
voluminous document, covering some
forty typewriter pages Mr.. Graves
says the petitioners are private Specu-
lators, who are endeavoring to buy up
the claims on the company of which he
is acting as receiver, and that in order
to secure the claims as eheaply as pos
sible it is charged that the western
Realty and Investment company has
attempted by fraudulent means to
show that's the assets are in bad shape
and by so doing have induced many
holders to sell their stock for much
less than it was really worth. The pc
titioners, it is alleged, have in this
manner acquired. claims aggregat1ng
something more than 100000
Specific charges are made against
julius Schutt, who, as president OF the
Western Realty and Investment COM
pany, is said to have pretended to ne
gotiate a sale of land belonging to the
estate in question in Utah. Receiver
Graves says Schutt pretended to have
a purchaser for the land, who was
willing to. pay $4,000, claiming the
only interest his company mad IN the
sale was to secure the regular commits
sion on the sale. 'Itiis charged that the
land was sold for $4,000 instead of
$4,000, and that the extra $4,000 was
appropriated by the Western Realty
and Investment company
Charges Against Johnson.
The answer also contains serious
charges. against Public Examiner S. I.
Johnson, who is purported to have
written letter to the Western Realty
and Investment company, in which he
stated that the affairs of the estate
were in bad shape and in which he
called attention to the disappearance
of some $4,000 which Receiver Graves
had not accounted for. Mr.. Graves
says neither Mr. Johnson nor any per-
son from his Office ever called on him
or examined the affairs of the COM
pany for which he is receiver and that
the letter written to the petitioners
was probably at their request, as it
was afterwards Autographed and dis
tributed among the stockholders for
the purpose of inducing them to sell
their holdings Mr.. Graves explains
the disappearance of the $4,000 by
explaining that it was transferred from
the mortgage fund to the realty fund,
and defies the petitioners to show
where his accounts are wrong in any
instance.
He renders tabulated statement of
every dollar received and paid out by
him to show that he has administered
the estate in a businesslike manner,
disposing of every piece of real estate
sold at figure higher than that at
which it had been appraised and listed.