The daily sentinel., 1909-06-07
SUIT TO
SECURE HOUSE

tIOOOE
Today in the district court a most
Interesting civil suit was filed
The Sherman W. Moody Jewelry
Company. which is now composed
largely of the creditors of Sherman
w. Moody, who was unable to meet
his financial obligations and retired
from the business some six weeks
! ago, is the plaintiff, while Attorney
Sam Berry is the defendant.
The iewelry company claims that
/ it and it alone holds the legal title
TO the handsome residence on Ouray
avenue that was occupied by Sher-
man w. Moody, and that his transfer
ring of the property to Attorney Ber-
ry was Illegal and the result of a
conspiracy to defraud said company
of its rights
About $4,000 is involved in the
suit. Attorneys McMullin q Stern
berg represent the plaintiff COM
pany.
The papers in the suit are lengthy.
and the transactions of Sherman w
Moody in a business way since he
came to the city are detailed at con-
siderable length.
The papers set forth that in Sep
tember. 1903, the Sherman w.
Moody Jewelry Company was organ
ized with capital stock of SIS, 900;
that Moody owned and controlled the
stock, but that he was insolvent when
he came here from the east, and that
the only resources he had after or
ganizing the company was the stock
of jewelry he purchased from NJ l..
Roberts.
IL iss f,.,- ha ha
money from the sherman w Moody
Jewelry Company and began to make
Investments: that in 1907 he was
more insolvent than ever. but that
in April. 1908, he, with merchandise
or money of the Sherman w. Moody I
Jewelry Company, purchased lots 2 i
and % in block 64, Grand Junction,
from Elsie II. Rubarts tthis is the
residence ON Ouray avenue) that he
made improvements thereafter on the |
and that the money he used |
was not dividends paid him by the
Sherman w. Moody Jewelry Company |
of which he was the controlling stock |
owner.
1t is declared that in the fail of
] 90S Moody planned to defraud his |
creditors by entering homestead til
tie to this property, which, the com
pany alleges, could only be held le-
gally or transferred legally by the |
company itself. as funds of the COM
pany had been used to purchase the
The homestead filing was
made, and the company alleges that
il was an illegal filing.
After Moody failed, at the solicita-
ion of the company in April. about
April ! he transferred the property
Q the company that was then con-
.rolled by his creditors. The COM !
pany then, II is set forth, entered into
an agreement with Attorney Berry, |,
who was then occupying the proper
ty. whereby it was to remain there
until May as tenant. -,
Later. it is alleged, Moody ar
ranged. without the consent of the |
to sell the property to At |
torney Berry, and the latter secured |
a quit claim deed and placed 1t on
file.
Now the company declares that af-
terward Moody wanted the quit claim
deed withdrawn by Attorney Berry
and the property turned over to the
company. but Attorney Berry de-
clined.
The company declares that any
transfer that Moody may have made
was entirely Illegal and fraudulent.
and that Mr.. Berry has no right or
title whatever to the property
The court is asked to appoint re-
ceiver for the property; to have the
receiver collect rental from Mr.. Ber-
ry, and to dispose of the property at
sale in order to protect the conpany's
rights and to satisfy an Indebtedness
to the amount of $4,000. composed of
two mortgages-one for $1,000 and
one for $4,000. the first held by T.
C. Caldwell and the latter by build
ing and loan association-thats stands
against the property.
The residence involved is one OF
the prettiest and most modern bum
galows in the city. 1t is valued at
about $4,000.
Mr.. Moody is now at some point in
the northwest
There is very likely to be a spirited
contest over the ownership of the
property, owing to the numerous per-
sons and corporations involved.
The Woodmen will be in session
this evening.
FOR RENT-Modern Z room house
for the summer. No children, 93S
Main-st