The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1903-12-18
Creditors of MadeIia Warehouse Com.
pany Will Get Something.
Claims of the Directors Are OisalloW.
ed by Judge Caldwell.
History of One of The Hardest Fought
Cases in State.
From Saturdays Daily.

the receiver of the defendant corpora
ton, the Madelia Farmers Warehouse
company recover of the stockholders the
sum set opposite to their respective
names.
Second. That the following named
persons are entitled to be allowed here.
in the amounts set opposite their re-
spective names and recover judgment
therefor, the said amounts being princi-
pal and interest due upon their said
claims at date of this decision" There
follows list of 81 names for amounts
ranging from $3.50 to $3,2S7.50 and
amounting to Sll,659.53.
"Third. That the stockholders of the
defendant corporation who paid assess
ments in pursuance of the 9Th, finding
of fact herein are not entitled to have
the same allowed as a claim against the
same for the reason that the said pay
ments were voluntary.
Fourth. That the stockholders who
loaned money to the said corporation as
found in the eth, finding of fact, herein
are not entitled to have the same allow
ed on the ground that the Indebtedness
of the said corporation at the time ex-
ceeded the limit provided by the charter
thereof
Fifth, That the payees of the eight
THOUSAND collar note made On the 29th
day of May, 1895, under the facts
found by the 10th, finding of facts herein
are not entitled to have the same al
lowed"
Unless appealed, the lengthy litiga-
ton over the affairs of the defunct Ma
della Warehouse company have at last
been brought to a close. The COM
pany became insolvent in 1897, through
alleged dealing in options, and b. G.
Taylor of this city was appointed receiv-
er. Since then there has been constant
litigation to untangle the affairs of the
concern and to protect the interests of
the creditors.
Two years before the receiver was APP
pointed, the directors had given mort
gage to themselves on the elevator prop
erty and it had become due and been
foreclosed, the property had been sold
to satisfy the Judgment, and the direct
ors had bid it in for $4,000, which was
half of their claim. The time for re-
demption had expired, and the property
was theirs. There were no assets IN
sight, and the outlook for the creditors
was indeed gloomy.
Mr.. Taylor was then appointed receiv-
er, and he started after the directors. He
brought an action to have the mortgage
foreclosure set aside, and another ac-
ton to have Judgment for $4,000 that
they had gotten through third man.,
named Tanning, set aside. He was sue
cessful in both actions, although each
went to the supreme court.
Then came the final hearing on claims,
and the receiver attacked the claim Of
the directors for the $4,000 and the ST.
600 on the ground that they had not
managed the affairs of the corporation In
good faith and had been negligent, and
that large part of the grain had been
shipped out to pay option losses. The
result has been that Judge Caldwell has
LII g @boeo oJo;roc
Mr.. Taylor has sold the elevator for
$500, and the double liability of the
stockholders. of whom there are said
to be 1919, will bring in a little over $4,-
OOO.. The rent received for the elevator
during the litigation amounts to several
hundred dollars. The total amount which
the receiver will have to divide among
the creditors will be little over $4,000,
less the expenses of the litigation, etc.
The claims that have been allowed
amount to Sll,659, and the receiver ex-
poets to be able to pay the creditors
thirty or forty cents on the dollar. He
will proceed to wind up the affairs of the
concern. at once, unless the directors
take an appeal from the order of the
district court disallowing their claims.
Mr. Taylor's attorneys are Savage u
Purdy of Minneapolis, and the attorneys
for the directors are w. S. Hammond
and Seeoer & Lobben of st. James. Mr..
TAYLOR naturally feels much elated over
his success over the directors in his
efforts on behalf of the creditors, and
he is deserving of a great deal OF credit
for his persistency and intelligent and
upright management of the affairs OF the
receivership.
Since the receivership started, there
have been eight different suits commenc-
ed, in some way connected with the
company.
The stockholders who are affected by
the double liability requirement are
mostly Watonwan county farmers, and
the amounts which they will have to
hand over to the receiver range from
$40 to $780, 1t is said that some of