The Bridgeport evening farmer., 1916-09-27
CREDITORS OF BURR & KNAPP IN SENSATIONAL DOCUMENT DEMAND TRUSTEE CHAMBERLAIN'S REMOVAL

l (Continued from Page 1.)
 the note, upon which he was endorser. | Claim He Avoids liability
 That John c. Chamberlain has fail ed and neglected to pay said part of | said note for the payment of which
 he is bound, and thereby, is deprived
 of $1,1O1.6O, to which it is properly
 entitled while John c. Chamberlain
 has avoided liability upon said note
 to the amount of $1,101.60.
 That if an action were instituted
 against John c. Chamberlain, this
 amount could be recovered for the lcreditors of the said estate of Burr &
 Knapp.
 Reduced Own Liability | A fourth allegation recites:
 That shortly after the time of the failure of Burr & Knapp, on the 21sr
 day of September, 1914 and while John
 c. Chamberlain was receiver, the Wa
 tervliet Hydraulic Co. had on deposit
 with the City National bank $5,384.95.
 That on that date the Watervliet
 Hydraulic Co., was indebted to Burr &
 Knapp, $53,710.98, an' the total indebt-
 edness of the Watervliet Hydraulic Co.
 was about 100000, and that, therefore, a large portion of the sum of $5, 384. .95 could have been recovered by the rep resentative of Burr & Knapp for the
 benefit of it's creditors
 That in spite of this fact, and his duty as receiver, John c. Chamberlain, neither then, nor later as trustee of the estate, made an effort to collect
 this sum. or any part thereof, but in place thereof, as president of the Wa
 tervliet Hydraulic Co.,, drew checks to the order of the City National bank for $5,3S4.95 and caused the checks to
 be credited upon said SIG, 900 note which
 had been reduced by payments there-
 tofore made by the Watervliet Hy- draulic Co, to the sum of $8,000, hereby reducing the liability of John 1C. Chamberlain as endorser thereon to
 the extent of $5,as4.s5. although at the
 time said John O. Chamberlain well
 Knew said Watervliet Hydraulic Co. was tnsolvent in fact" | That by 50 doing, Chamberlain in- 1ured the. creditors of the firm of Burr G Knapp in the sum of between q, 900 and 5000 which the estate would oth- erwtse have been entitled to recover l from funds of the Watervliet Fydrau- lie Co.,.
 ! Another allegation sets forth: That while said John c. Chamber
 lain was receiver of Burr 6 Knapp, and while he was trustee in bank ruptcy, he made no attempt to dis-
 pose for a valuable consideration for I the benefit of creditors of said es- tate. but turned over to 6. corporation
 known as The Title Guarantee & 1 Trust Co.,. the mortgage and rent col-
 lecting and other profitable business which Burr & Knapp carried on be-
 fore the failure to the profit of both 1 the corporation and himself, who is
 the president and a large stockho1der
 therein. That. to assist in such p1r- 1 pose John c. Chamberlain, while he
 was representative on the estate 0 l Burr & Knapp for the benefit of creditors, and on or about tho 10th day of Novernbef, 1914, sent out this
 circular letter:
 Bridgeport, Conn. l November 10, 1914. To the Holders of Bridgeport Mortgages Issued Through Burr & Knapp:
 We have taken over the Bridge l port mortgage business formerly
 conducted by Burr & Knapp SO far as tho collection of interest and principal and care of the mort l gagged property is concerned. This business has always been con- dncted in tho past by Burr & Knapp without charge to, tho fn- vestors, and will be cared for by | us in exactly ths same manner, All money collected by us will be deposited in Tho Ffrst-Bridge- port National Bank in a trust fund, and will be paid out inms-
 diateiy upon receipt of proper coupons OF papers.
 You are at perfse+ liberty to collect this interest yourself If you wish or to place it's collection in other hands. if you so desire, but unless we hear from you to the contrary we will notify the mort gagors to pay us the interest and remit to you.
 Onf addFess until beeemter 1st, will be Ne, s2s Main street, after
 that date, Ne. ses Broad street, Bridgeport, Conn,
 Yours very truly, The City Title Guaranty, Trust A Safe Deposit Ce,
 J. O. Chamberlain, President A sixth assertion is that at the time of failure of Burr & Knapp, the firm
 had a valuable insurance business | which could have been sold fer con-
 siderable sum of money, for the bene-
 fit of the creditors of the estate. That John O, Chamberlain, as trus- tee, asked fer an order of sale of
 said portion of the business of Burr
 & Knapp and was directed to sell by
 public, auction.
 Refused Informatien That Irresponsible bidders at the auc- l tien were refused information such | as the contents of the expiration policy book, by said Johz c. Chamberlain and his agents, which information was | vital if the insurance business was to
 be sold at anything like It's fair value; That as result of failure to give
 such information. responsible bidders
 were deterred from bidding and the insurance business was purchased by The Title Guarantee c Trust Co.,, of
 which John O. ChamperIasn was pres- | ident, for the sum of t1,060; That objection was made to the con-
 firmation of sale and the referee in | bankruptcy refused to confirm and | directed that the business be sold over | again.
 That upon second sale, like re- | fI1SaJ to furnish inForyoofiop xr,os