The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-04-19
BANK MUST PAYIT
Judgment of $4,000 Against
Lawrence Institution.
Jury Holds That Money Should
Be Divided.
FAMOUS SHEARER CASE
Widow of Wealthy Wholesaler
Now a Bankrupt.
Turned Over All She Had to the
Creditors.
FAMOUS SHEARER CASE

In the case q Ord Clingman, trustee
Of the estate of Mrs. Maud Shearer of
Lawrence, against the Lawrence Ma
tional bank, the jury in the federal
court this morning returned a verdict
for $10.185.6S for the pIa4ntiff.
Inc trial commenced on last Saturday
noon and was not completed until this
morning. The jury was out IS minutes.
Clifford Histed of Kansas CITY repre-
scented the plaintiff, and Judge Barker
ana Judge Norton of Lawrence appear-
ed for the defendant
The particular issue in the case was
whether Mrs. Shearer had shown prefer
ence in paying off debts to theI Lawrence
National bank over other creditors
when she realized that she was in
solvent. This Is the point which the
plaintiff presented, and the jury accept
ed it.
Mrs Shearer was the wife of ]. j.
Snearer of Lawrence, who owned the
Shearef Dry Goods company of that
place. When her husband died he left
a great deal of property, some of it
however involved. She took active man
agement of his business affairs, and ac-
coFding to Ord Clingman the trustee
bought more heavily that was neces-
sary, with the result that almost un-
limited obligations were loaded upon
her shoulders. Mr.. Clingman says that
had she sold her property at her hus-
bands death and paid up all the debts,
she would have had fortune stiIl left
clear.
But in 1908 she found herself so heav-
lily involved that she filed a plea of vol
untary bankruptcy in the United States
court and it was granted her.
During the four months before she
was declared q bankrupt, Mrs. Shearer
paid off quite a large Indebtedness TO
the Lawrence bank, from which con-
I zt4n F191 T0v A.,
mortgages upon her homestead. The
sum was in the neighborhood of $4,000.
When Mr.. Clingman, the trustee, at
tempted to settle up the estate he de-
cided that she had shown preference to
the Lawrence bank, and that this money
should be divided equally among all the
creditors. The jury accepted this view
of the case this morning and returned
verdict accordingly.
While the jury was out, Judge Pol
lock discharged Mrs. Shearer from
bankruptcy. But one objection was
made, and that was that she had lived
in her homestead after she had been
ordered to leave it. This was termed
contempt of court by those who fled the
objection. An affidavit was produced to
the effect that Mrs. Shearer was power
ty stricken and simply had no place to
lay her head.
Judge Pollock took the latter view.
He said: 1T appears that this woman
was absolutely honest. She paid every
cent into this court when she was de-
clared a bankrupt and all of her for
tune. her homestead and everything
she had, was swept away Nothing was
left to her. The fact that she stayed a
few months longer in her home than the
court ordered is not going to be con-
strued as contempt by me. It is what
I should want any woman to do under
the same circumstances. She was hon
est in every way when she appeared
before this court. And for that reason
[ shall discharge her. This objection
will have no bearing with me at all.
Any one who comes here and makes an
honest confession of his holdings and
asks relief through the bankruptcy law.
will receive it and when the matter is
settled up, will receive a discharge But
I will not discharge any one who makes
a false statement before me"