New-York tribune., 1905-01-05
BROKERS ARE INVOLVED.
ReceiUershp asked for Under1cood,
FankhauSer 6 Co.
tBT TELEGRAPH TO THE TRIBUNE. !

Trenton N. j., Jan. An order signed by
Chancellor Magic was filed here to-day requir-
ing Underwood. Fankhauser & Co. brokers. of
No. 27 William-st.. New-York City. to show
cause next Tuesday at Newark why a receiver
should not be appointed for the corporation on
the ground that it is insolvent. The rule was
obtained by the Chaplin National Bank, Of
Springfield, Mass, which has unsatisfed
judgment for S10,113 against the Underwood
company This judgment was given in the Su-
preme Court on December 10 last. Pending the
return of the rule the company is enjoined from
transactng any business or from disposing Of
any of its assets
1t is set out IN the bill that the Underwood
company was incorporated in 1902 with an au-
thorized capital stock of 100000. the object
specified in its charter being to carry on a gen.
eTal brokerage and commission business Will
lam II. Underwood is president and Charles K.
Fankhauser secretary. These with r. w. Fank-
hauser, constitute the board OF directors The
bill charges that on the failure of the company
to pay the State franchise tax of 500 for ap-
plcation of the Attorney General, it was then
ordered to desist from exercising any of the
powers conferred by it's franchise. The COM
plainants state that they have been unable to
discover any tangible assets of the company, ex-
j. Korb, of Warner, Wells & Korb, sets forth
that he was Informed by counsel for the I'm
thing toward settling the judgment.
The corporation of Underwood, Fankhauser & Co
is engaged in the promotion business. At offices
yesterday afternoon the president, William H. Tn
derwood made the following statement:
Referring to the matter Of the Chaplin National
Bank. which obtained Judgment against US in De-
cember. in New-jersey, the facts these:
We had indorsed paper TO the extent of $1,000
which discounted at the Chaplin National Bank
They have entered suit against indorsers
This suit brought without our knowledge, ana
were not notified Of the suit until after judgment
had been obtained. The plaintiff claims service
was gotten at the Corporation Trust Company OF
New-Jersey, which represented Underwood Fank-
hauser & Co. a New-Jersey corporation. BY
some error after notice given to the Corpora
ton Trust Company. we were not notified, hence
judgment was obtained by defau {. AS soon We
knew this, took steps TO have the judgment
vacated, and that matter is In the hands of
attorney.
Their present action is simply inexplicable our
a defence on this claim. which we desire to have
and shall endeavor to have the case reopened when
We put in our defence. which is both legal
and proper. We are not very much worried about
this matter except for the annoyance 1t brings
When this suit is reopened. and if they tfTen oh
tain judgment, stand ready 10 pay, We do
all other just claims on presentation.
Yes. there was collateral given to secure these
notes. to the extent OF $4,000 in bonds The matter
will be unquestionably satisfactorily adjusted in
legal and proper way.
The maker OF the notes indorsed by Underwood
Fankhauser & Co., Mr.. Underwood added, was a
Western concern, which has recently become bank
rupt.