The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1912-12-05
JUDGE C0TTERAL HOLDS
PERRY AN INTERESTED PARTY
His Retention as Receiver Of The
Iron Company Violates Spirit
Of Bankruptcy Laws

The hearing on the motion todis-
qualify Receiver II. J. Perry Of the
Southwestern Iron company, vas con.
tinued before Federal Judge Gotter
al this morning Attorneys EriXon.
who filed the notion and Frank II
Mcclure, counsel for Mir Perry
argued the various propositions at
length, and Judge Cotteral at the
close Of the argument. oyerluled the
motion, but held that Mr. Perry was
disqualified by reason OF interest in
the matter at issue.
Violated Spirit of Bankrupt Act
The Judge In reviewing the testi
mony, and the record and papers ID
the case, said that il was admitted
that Mr. Perry was president and
stockholder in the bankrupt COMPANY
and had acted in these capacities
since June last That while there was
no reflection on the honesty and abi
ity Of the receiver. the spirit Of the
bankrupt act would only permit per
son wholly disinterested 10 act as trns-
tee, and that fairness to the creditors
also demanded such alsInteredness in
a person holding such a position The
fact that AIR. Perry held stock IN the
company, was an officer. that his
brother was large creditor and 9th
or matters brought out that would
have a tendency to cause an interest
ed party to show any partality in any
direction, the court thought sufficient
to disquaify the receiver
Receiver Should Be
Disinterested Party
Attorney Mcclure, for Receiver Per
ry declared that this action on the
part Of Attorney ErXon was prompt
ed by desire for revenge on account
Of the latter not being appointed al
torneg for Mr.. Perry The court held,
however. that even If this was true,
the facts Of Mr.. Perry's shown inter
est in the bankrupt concern sdll ey-
listed. and was sufficient cause for re-
moval. however Erixon might have
been actuated The court said chat
absolute impartiality and disinterest
edness was demanded in receiver.
and the law viewed with a Jealous eye
the actions of receivers and would |
not permit even the suspicion Of any
interest IN the officer serving in such /
capacity.
The court permitted Mr. Perry to |
continue to act as receiver until the |
creditors could hold meeting and So
lect his successor. \ meeting Will be
called at once and new receiver |
recommended to the court
Perry was named as receiver only |
few days ago.
Didn't Serve The Writs
Attorney Erixon asked for sub
poenas for John w Thomas inventor
OF the Thomas frog and former Pres
ident Martindale Before the writs
could be served Thomas had left the I
city for Kansas city and MartiudaIe !
had gone south, presumably to oklaho-
ma City. 1t develops that Thomas
was the person who told EriNon that /
'4f he did not let up on his fight on /
Perry he would be disbarred
Lows Testimony
In regard to the testimony of Harry /
Low. before Referee Burford. concern
ins the Conklm stock. the following
is taken from the official stenograpA-
er's notes:
II. /. Low. sworn and examined by /
MIR Mcclure: Did Mr. Martindale
have any conversation with YOU re-
Gently about your TESTIMONY i'm regard /
10 the Alice Conkliug stock
A. Yes he asked me about #.
o What did YOU tell him
A. lie asked me if recalled him /
telling me about charging that TO his /
account and told him no didn't
o. What did he say them