The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1912-09-24
Who Was The Receiver For
Business Of |. E.. Penn
Allegations Are Also Made
Against The Latter
Other Items Of Interest From
The Court House

"A suit In which some sensational
allegations are made, was filed Friday
morning in the court of common pleas
OF Knox county by The Jesse French
& Sons Piano Company Of New
Castle, Indiana, against Ward J. Wal
ters, l.. J. Penn, r. |. Francis, II. G..
Penn, Charles A. Welsh, Anna NJ.
Cook, u. l. Secor, Henry SPAIN, Ethel
SPAIN, w. A. Gibson and Mrs. w. A.
Gibson.
The suit is brought to recover the
sum of $4,000 for the alleged mis-.
management of affairs by Ward j..
Walters, while acting as receiver for
the business of l.. G.. Penn OF Mt. Yer
non.
All the defendants, with the excep.
tion of the first named, are bonds
men for Ward j. Walters, while he
was receiver for l.. c.. Penn.
The plaintiff states that II Is a cor
poratio of the state of Indiana and
a creditor of l.. G. Penn. The state.
ment is made that this suit is brought
by the plaintiff and others who are
similarly situated and whose inter
ests are identical and whose names
are too numerous to mention.
The allegation Is made that on Feb
ruary II, 1908. Il. |. Francis filed a pc.
tition in the court OF common pleas
.nl t,.aY E.t. hn
pointment of receiver for l., c.
Penn, then engaged In conducting a
music and piano store in the city OF
Mt. Vernon. The statement Is made
that on February II, 1908, the said
Ward j. Walters was appointed an re-
ceiver OF the business and gave bond
in the sum of $4,000 with the bonds
men whose names appear as de-
PENDANTS In this action.
The allegation Is made that the re-
ceiyer did not comply with the con-
ditions OF said obligation aud did not
faithfully discharge his duties as re-
ceiyer.
outset employed l.. c, Penn to assist
him In his duties and surrendered the
control of the business to the said
l.. G. Penn and that the latter wasted
and disslpated the assets which came
into the hands of the receiver, Wal
ters. II Is claimed by the plaintif
that /. c. Penn used large sums In
paying the claims OF creiitors and
that the receiver permitted l.. c. Penn
10 withdraw large sums from the as.
sets and proceeds of sales aud dissi.
pate them with the full knowledge Of
the said Walters.
The lurther allegation IL made that
the said l.. G. Penn took the assets
and devoted them to his own use
that he financed n lecture course, "a
medical enterprise, "rhe Hiawatha
Park Il Amusement Company, an
insurance and real estate venture, a
Board of Trade" and In other ways
converted. dissipatod. squapdered and
lost the assets In the lands OF the
receiver, Walters. and that there was
squandcred IN this maner sum
greater than $4,000.
The plaintiff alleges that the re.
ceiver failed to discharge his duties
but allowed the said l.. G.. Penn to
conduct the entire business,
II is alleged that the receiver
bought up claims of creditors and con,
cealed from the court his act of man.
agement
II In claimed that Receiver Wal.
ters Permitted l.. C. Penn to purchase
his own goods and that he did pur.
chase goods TO the amount OF S56G.30
and sell the same.
II is further alleged that the receIy.
er abandoned his duties aud per.
mitted Penn to have the absolute
control and dominion over all the as
sets and that he was allowed to sign
nis name TO negotiable papers aud to
purchase property on his own &C.
count.
The plaintir therefore prays for a
Judgment In the sum OF $4,000 from
the hondsmen.
The attorneys for the plalntln In