The Washington herald., 1907-04-07
CREDITORS UNEASY
Look for Sensation in Martin
Brothers Litigation.
PETITION FOR BANKRUPTCY
Alleged ConceaIment OF Securities.
Assignment of Rent lists, and Petit
tioH for Receivers cited IS Acts Of
InsoIveney-strong BOX Faund and
May BE Opened Tomorrow.

Through the institution Of involuntary
bankruptcy proceedings against the Mar.
| tin Brothers. local real estate dealers and
brokers. an action taken yesterday by
/ certain creditors Of the firm for which
receivers have been appointed, It has de.
yeioped that criminal proceedings are con.
| templated. It is intimated by the attor-
aegs representing the creditors fling the
petition in bankruptcy that an investiga-
tien Of the firms affairs VIII reveal con-
ditions similar TO those existing In the
noted Waggamsn failure.
IN the petition flied before Justice Bar
nard yesterday by Attorneys John D
Daish, W. J. Lambert, and Fred A. Fen
ming. representing Fannie S. Reynolds,
Myrick II. Doolittie. and the Washington
Times Company. three specific acts OF
bankruptcy are aueged-the transfer OF
the firms rent lists. the request for re-
eeivers. and the concsalment Of eecuri-
ties. The court ruled TO show cause by
April ..
Firm Assigns Rent List.
It Is charged that the nrm assigned its
rent list to F. H. Smith & Co on April
I, after making an agreesaent whereby
the latter firm was 10 share the commits
sions with the Martin Brothers, whose
share was TO be turned over 10 the owners
OF the houses. This agreement, it is said
was 20 have held for six years, and Il is
alleged 70 have been rendered necessary
by the fact that the Martin firm had
collected some rents without paying the
money over 20 their clients.
The petition sets forth that the fact that
the firm applied 70 have the partnership
dissolved and 20 have receivers appointed
is equivalent 10 an admission of in
sOlvency end an act Of bankruptcy. In
regard TO the alleged c0neeafng Of secur-
tiles. Attorney fleming stated last night
that when he went % the firms Office
recently and asked 20 see a note Tor
ST. 80 made Out by a client OF his, the
members Of the firm stated that tie note
was not there, and that they did not
know where it was.
StronE Box Comes 10 Light.
It is claimed By Lee r. Martin. who
hIed a bill IN equity against his brother
Thomas 10 have the partnership dissolved.
that his brother had practically the en-
tire charge Of the business. and had mis-
it to its "irreparable injury"
Thomas Martin is supposed 10 be in such
a mental condition as 10 be unable 10
advise with his counsel. and Lee T. Mar
tin is alleged to be innocent Of all e0nnec-
ton with the failure.
Mrs. Thomas r. Martin stands vaiiantiy
by her husband in the crisis. and ex-
presses complete faith in his vindication.
With the FIRMS attorney A. +. /, Leekie.
Mrs. Martin found a strong box yester-
day in the Washington Safe Deposit Com
pany belonging 20 her husband She is
firm In the belief that IN this box win be
found securities TO offset the greater part
of the firms Indebtedness. She further
believes there is another box for which a
search viii be made tomorrow. Her hus-
band is said TO be In a mental condition
rendering It Impossible for him TO assist
in the search for the missing securities [
ana other assets.
Guy II. Johnson and Joseph p. Sullivan.
the receivers appointed BY Justice Clay
baugh, vii ask the courts permission 10
have the safe deposit boxes opened to /
There Is a general feeling among
the creditors that little, Il anything of {
benefit 10 them viii be found IN the box |
II is estimated that the amount of the /
ARMS Indebtedness has been greatly ex-
lggerated and that the liabilities may not /
reach y75,0o0.