The Montgomery advertiser., 1903-10-25
PETITION TO JUDGE CLARK
Criminality Charged to Ware
 h using Companies.
Material Placed in Storage Said to Have Been Appropriated-Long List of Banks Implicated
 in the Matter.

Shattan0oga, Ienn., Dct. A.-A petiLon was filed in the United States Court here today by Thomas G. Bush, Thomas A. Gillespie and o. L. Hurlburt, trustees in bankruptcy of the Southern Car and Foundry Company, against the Export Storage Company; Security Warehous.ns Company, National Security Company and a long list of banks doing business in all parts of the United States, making sensational allegations under oath.
 It is given out that criminal proceedings will result. .a
 In the petition 1t Is alleged that the Southern Car and Foundry Company through its officers, June IS, 1851, entered into a contract with the Export Storage Company leasing the plants of the com pany at LenioI and Memphis, Tenn, and st Gadsoen and Anniston. Ala, and also agreement by which the storage com pany claimed to have leased to 1t per- ssonal property and to issue for 1t ware house receipts. It Is alleged that at the same time the car compGny made an agreement with the Security Warehous- ing Company whereby the latter company agreed to receive in storage personal property and to issue receipts therefor. It is further stated that since that time va- rious receipts have been issued by the warehousing company and that the car company has pledged these receipts as collateral security for money borrowed from banks all over the United States, and later the National Security Company made contract by which 1t agreed to guarantee to the holders on the receipts that all the obligations should be kept.
 The trustees alleged that the property kept in alleged storage were not In any kha af fhA car company; that no signs were put ur to indicate the claims of the warehousins company; that the latter never took pos session and that the ear company had free access to all materials, ard that the alleged custodians of the warehouse. com panies were paid by the car company.
 It is claimed that sfter these contract: were entered int othe car company con tinued to carry on it's operations as be. fore and that the company dealt with thu material on the premises without regard to whether warehouse receipts were is' sued for them or not It is claimed that the only requirements was that the total quantities of the materials of the various classes on hand and in manufacture should equal the aggregate amount Of re- ceipts outstanding.
 1t is caIn1ied that since the company went into the hands of receivers. the warehousing company has placed tags on matter at the various plans and that al the Anniston and Memphi. plants these aggregate 90 per cent. of the stock. and that the warehouse receipts outstanding exceed $1.0o0.00o.
 The netitioners allege that the whole purpose in making the agreements with the warehouse companies vas to obtain for matter on hand and in process Of manufacture. the receipts of the said warebousing companies so as to allow the car company to obtain loans on materials and that the purpose of this was known to the warehousing company and that the carrying on of business IT. this manner uas with the knowledge a.Id consent of the warehouslng company
 While the record entries were made ot said receipts and of the property there fin described by the so-called custodian and sometimes tags were tndlscriminate- Iv placed on various piles of material in nossession of the Southern Car and Eround,y Company, this constituted prac- ticaliy the whole transaction, so that al inc time the receipts held by the defend onts were issued, the said warehoustng asvtem WIS in effect nothing more than a device of book keeping to which the op' erotinz department of the Southern Car and Foundry Company paid no attention whatever. -
 After charging that the State laws oi Alabama and Tennessee we've not obeyed in registering the charters on the ware house companies the receivers charged that al of the receipts held by the de- fendqnts were issued while the Southern Ca rand Foundry Company ;7as insolvent most of them within four months pre- cedjnR the bankruptcy and that said at tempted transfers and encur. brances were in fact and in law a fraud on the cred itors of the car company
 A previous order had been issued by Judge Clark placing the receivers in pos session of all this property. and on the petttion .ed today an injunction was is' sued to prevent the sale or disposal of the property.