Evening journal., 1905-05-08

OF $500 to their solicitor IN a former suit
against Miller and the sum Of S5I3e costs
in that former suit
Tho result OF this litigation was that
about two years after the advances thus
made by Mr. Honeclor the chamborlans
executed TO him personally "a mortgage
for Nilo0, which mortgage. one month
afterwards he assigned 90 himself as
trustee OF the Teas estate. Ia the dif-
ference between the amount paid Millor
and the total amonic advanced from the
trust funds In his hands, MT Honecker
has testified that there was included his
compensation as counsel for the Cham
bcrlains
From the time Of the assigning OF This
mortgage It appears chat numerous C
forts we're made to develop the Chambef-
nin property. all OF which efforts re-
suited In failure and loss 10 those cn-
gaged therein. For some reason, however
Mr. Honeclser seems 10 have believed th1 :
money wns TO be made from developins
thep roporty. With this end IN view, ia
tho year 1900. he organized a corporation
known as the Hockessn kaoln Company /
the original incorporators Of which were
John Burgess. Leonard E. Wales. Junior,
and Thomas J. Bowen, Jusior, the two
latter being then In Mr. uonecker's Of
nce. This corporation had an authorized
capital stock OF One Hundred Thousand
Dollars, divided into one thousand shnrcs
of the par value Of one hundred dollars.
on July o. 1900 Crcstimony page H. &cl.
Mr. Hoffockor as trustee and individually
made aw ritten proposition Co scll TO that
company for the sum of one hundred and
seventeen thousand, two hundred dollars
the land IN Mill Creek hundred, title 90
which he had acquired under foreclosure
proceedings had under the above mort
gape. together with certain buildings, MAJ
/ chinory. &c, thereon, and was to receive
In consideration therefor one hundred
thousand dollars In the stock of the COM
pnny, 10 be issued 90 him as trustee. and
the balance, amounting to seventeen
thousand two hundred dollars. 20 be an
open account with the company and pay-
able TO him personally. IN the same prop
osition suggesting that mortgage should
be negotiated to pay the open account
with him. Previous TO this time Mr. Hof-
feoker had used the money OF the Teas
estate. realized from the sale OF sccuri-
ties, to the extent Of about eighteen thous-
I
chlnory tools. sc In connection with the
lSaolin property, this in addition TO what
the Tens estate had before In the prop
erty, making total of upwards of thirty
six thousand dollars. Mr. Honecker also
claims TO have placed sixteen thousand
nve hundred dollars of his own money
the same enterprise.
Under the above proposition, which was
accepted by the company. and which was
Afterwards acted upon by the execution
Of "a mortgage for twenty thousand dol.
lars given TO Mr. lIOnecker, the Teas es-
tate was TO receive stock for ia interest
b and Mr. IIonecker individually was TO res
celve the obligation Of the company t1
repay him the amount he claimed {,
2 have advanced.
Notwithstanding the arrangement mad'
o. the stock OF the I1ockessin kaolin Com
j pany. when issued, as will appear OF
pages ~. ot seq Of the testimony takel
# before tho master was divided by Mr.
e Honecsor SO that he held as trustee Nv
e hundred and fifty shares, he gave him
e self individually two hundred and TWEEN
:, ty-seven shares. he gave TO John w. Bur
J. CESS one hundred and fifteen shares, an
a to various other persons the remainin
10 capital stock.
ne IL Is unnecessary 10 pursue further th
Al history Of the Hockessin 1<aolin Con
~ pany and Mr.. Honocker's dealings wit
the trust fund IN connection with
pr ending with the insolvency OF the COZ
Sc poration and the loss OF all the none
io invested, for as already stated IL may b
10 read fully IN details m the testimony b'
" fore the master and in the answer an
exhibits OF the respondent produced q
e. the hearing OF the rule The partial r.
b. view of Il which, I have already made
In sufficient TO show Mr. Homccker's metho
ID of dealing with the fund committed TO h
10 charge as trustee under the will o
n Joseph Teas.
90 The solicitors for the rule moving thi
as the rule be made absolute, suhmitte
b. that the following facts appear from n
OF testimony before the master;
81 THAT the trust estate which can
f. into the hands of Mr.. Honecker va
s. wisely safely and securely invested
is conservative securities. and that fro
nd time to time these securities have be'
Sc disposed of, and the proceeds therefro
usd I'm ways neither warranted by q
III trusts declared in the will nor by the VIZ
~ recognized rules governing the inves
a. ment OF such funds by trustees, whi'
se has resulted IN the complete and tot
p- destruction Of the trust fund. and tn
ill this was done by a solicitor OF the cou
"- of Chanoery
he ''2. That the trust funds were used
he the trustee for thep romouon Of specul
", tive industrial enterprises in which he
zee his personal capacity was interested.
he '8. That the trust estate was used
'o- the trustee for his own personal adva
he tage. and az least with the hope Of ma
FOR ing profit 10 himself in his indiyidl
'as capacity.
it. "A. THAT the funds belonging TO
ad trust estate were used by Mr.. Honecl
icy for purposes entirely disconnected w
md the trust under which it was held, a
ms for the furthcrance OF his own or
he clients interests
of And they conclude. that his trans'
his tions IN using the trust estate directly
indirectly for his own advlntage a
ms benefit. and thereby completely vast
ith and dissipatng Il, do not IN any SCI
ov- constitute a. mere error IN judgment,
be show an utter disregard of the trust
wn posed IN him In his capacity as trust
ec- and likewise such utter disregard of
led well settled and we'll known principles
his law and ethics as to render Mr.. IT
his fockcr's further continuance as soliC'
the I'm this court inlnoQgible"