The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-03-11
They Are Attempting to Absolve
Themselves from Contempt Of the
Federal Court.
RECEIVER KELso ON THE STAND
HE TELLS AN ENTERTAINING STORY
OF THE WHOLE AFFAIR.
Claims He Was Urged by the Louis
willie Attorneys to Disregard the
Rights Of Federal Receiver.

Great interest is being taken in the con.
tempt proceedings which are being heard
by Judge Anderson, of the United States
District Court. Special interest is taken
in the case by southern Indiana people,
on account of the fact that d. A. Sachs
and w. w. Watts. who are cited to show
cause why they should not be punished for
contempt, are Louisville men. In fact,
nearly all of the people interested in the
case are from Louisville and New Albany.
AS has been announced, the matter grows
out of the two receiverships of the NJ Zier
Company of New Albany. Yesterday was
the second day of the trial of the two Ken
lucky lawyers The case is attracting a
great deal Of attention from the southern
Indiana and Louisville newspapers and
several of these papers are represented.
The case is not finished, Judge Anderson
adjourning court at 5 o'clock yesterday
afternoon in the midst of the testimony of
Charles G. Kelso, the man whom Judge
Utz, of the Floyd Circuit Court, appointed
receiver of the M. Zier Company after Fred
erick Connor had been appointed receiver in
bankruptcy by the United States Court
Kelso is one of the men Judge Anderson
had already sent to Jail a result of the
action of the lower court He received
sentence of sixty days and is now serving
his time in the Marion county Jail.
He did not look like a man fresh from
behind the bars when he stepped on the
witness stand yesterday afternoon. He
was well dressed, his clothes looked as
though they had been well cared for and
he appeared to be well fed and contented.
His testimony seemed to be about the most
important of the day. The United States
district attorney questioned Kelso closely.
apparently with a view to showing that
what Objectionable acts he was guilty of
in the eyes of the United States Court
were largely through the persuasive infu-
ence of Watts aind Sachs.
AN ENTERTAINING STORY.
Kelso told the court very entertaining
story of how these two Louisville attorneys,
In the face of Judge Andersons appoint
ment of a receiver in bankruptcy, urged
him, as the receiver appointed by the lower
court to take possession of the property
in the hands of the other officers Kelso
stated that Sachs and Watts were so ur-
gent that they offered to stand good for
any costs that might accrue as a result of
his act He told the court that he sug-
gested to them that 1T was a rather serious
thing to interfere with federal authority
i'm this way. and he feared that he might
be fined for contempt, and there was a pos
sibiiity of getting into Jail. He described
how Sachs sought to allay his fears and
told him that he would pay any costs that
might be taxed against him IL he were fined.
Sachs further said to him, he related, that
he had never heard of any one being sent
to Jail for contempt in a civil case. Kelso
went on to say that prior to his appoint
ment as receiver for the NJ. Zier Company
he was acting as attorney for the United
States Tube Company, which was one of
the Nj. Zier Company's creditors. He said
that when his name was suggested in con-
nection with the receivership he asserted
that he could not serve in this capacity be-
cause he was an attorney of record in the
case He told how IL was then agreed be-
tween Kelso and Sachs that Sachs should
become attorney for the tube company
This plan was carried out, and Sachs acted
as counsel for Kelso as receiver of the
Floyd Circuit Court Tor the M. Zier Com
pnay's plant.
Another interesting witness. and one that
attracted much attention, was Judge Utz
Of the Floyd Circuit Court, the man that
appointed Kelso receiver. The court lis
tened to the testimony of Judge Utz close
ing G.. III. Hester. Frederick Connor, the
Inland Steel Company and others from
taking possession of the plant was issued
AT the request OF w. w. Watts. Sachs's
attorneys were rather searching In their
cfoss-examination OF Judge Utz.
ASKED ABOUT CONFERENCE.
The Judge was asked particularly about q
conference he and Lawyer Sachs and Law.