The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-04-19
FOR A RECEIVER.
Judge Pollock to Appoint One
for Uncle Sam Company.
Says Interests of Stockholders
Require Action.
JUDGE WILL WAIT
Does Not Indicate Who Is to Be
Named.
bankruptcy Hearing Won't BS
Held Now.
JUDGE WILL

A receiver for the Uncle Sam Oil
company will be appointed by Judge
J. c. Pollock of the United States dis
trict court An order to that effect
was handed down today
The appointment is made without
granting either the contention that
the property is insolvent as the petit
ton filed by Karnes, New and
Krauthof ailege or upon the bill of
complaint of H L. Thrill, a stock
holder of Charleston, Illinois.
The appointment is made on the
grounds that 1t is to the interests Of
the stockholders.
Everybody wants a receiver" said
Judge Pollock, 1.-The stockholders
want receiver, the creditors want
receiver. The receiver is appointed in
the interests of conserving the estate.
If it wasn't done it would be soon dis
sipated and there would be nothing
left for the stockholders. There is
little enough as it is and what there is
should be conserved.
This leaves undecided the question
of jurisdiction raised by the suit of
Judge Allen and also the appointment
of a receiver under that suit, the petit
tion for involuntary bankruptcy is
also left unacted upon. That will be
adtudicated in a few days" said Judge
Pollock.
In the open court Judge Pollock
stated that he did not have much
sympathy with the creditors of the
company but his sympathy was large
1y with the stockholders who had
been induced to invest their money on
glittering promises.
Twenty days is left in which to ad-
judicate the question of bankruptcy.
The company may reply to the petition
within that time and bring evidence
that they are not insolvent as claimed.
The receiver for the company will
h. rl1a i
Pollock stated that no suggestions had
been made to him as to men avail
able for the position of receiver. He
stated that he had made no decision
and did not know when he would
make the appointment.
The officers of the company claim
that the property is worth about $780,
600, with stock sold amounting to ap-
proximatel~ $1,230,00O. This would
mean that upon the present appraise-
ment as given in the court Thursday,
the stockholders would receive about
40 cents on the dollar invested.
After spending two hours and a half
in argument Thursday afternoon.
JUDGE Pollock stated that he would
take the whole matter under advise
ment.
5. H. Allen, appearing for H. L. Tir-
rill, claimed that the company was
solvent and that the act of assign
ment which is stated took place on
April 16 to I. NJ. Walker, r. N. Allen
and J. NJ. Patterson is void because
the board of directors did not make
the assignment The petition for in
voluntary bankruptcy is based on this
act OF assignment.
] B. Tomlinson, as attorney for h. H.
Tucker, argued that the court had no
jurisdiction That the case should be
tried in Arizona because the corpora
tion was an Arizona corporation and
the party suing was a resident and citi-
zen of Illinois, that Judge Pollock had
only jurisdiction between a resident and
citizen of one state as against a resi-
dent and citizen of another state, and
not as a citizen a resident of Arizona
territory and a resident a citizen of a
state
A demurrer covering this was entered
by TOmlinSOn.
Outside of the court room two names
have thus far been mentioned for the
office of receiver. The one of them is
State Senator W. S. Fitzpatrick of Sc
dan and the other is ]. B. Tomlinson,
attorney for H. h. Tucker. However 1t
Is probable neither one of these men
will be appointed
The action of Judge Pollock today of
course does away with the management
of the company by the three trustees
appointed by Tucker on the 18th of
April.
Tucker and his attorneys seemed to
welcome the appointment of a receiver
under the bankruptcy petition rather
than oppose it. This would indicate that
Tucker is tired of fighting the dissension
which has sprung up among some of
the stockholders and the fight which is
being waged from outside of the COM ,
pany.
The bond which the petitioning bond
holders in the action of bankruptcy will
be forced to file is the usual form fol-
lowed to protect the company from any
damage which may result from the fl
ing of an action of that kind against an
incorporated company engaged in busi-
ness.