South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-04-07
FORGERY limited
IN PLOW CASE
Validity of Minutes of DireC-
tors Meeting One Issue in
Suit For Accounting.

Forgery IN tine recording OF the
minutes OF a meeting Of the direc-
torate OF the South Bend Pillow CO.
held I'm 1900. was limited at Friday
morning. when counsel for the
plaintiffs outlined the basis OF their
contentious In the application Of
Maria Casaday for an accounting
and receivership against the plow
corporation.
Tie alleged forgery was supposed
20 have occurred in the summer OF
1900 when A ID. Baker recorded
certain transactions said 20 have Oc-
Cured at the meeting. Further. 10
IS alleged, that ". J.. Casaday one
OF the founders OF the concern, and
president. later took the records Of
the minutes 20 the office Of the late
Judge Lucius Hubbard. where he
wrote across the side Of the ledger
that no such meeting had been held
and that the transactions and agree
ments as stated in the minutes 70
have been entered into, were fraud.
This point in the receivership pro-
ceedings may prove TO be one OF the
most bitterly contested.
The plaintiffs contention briefly
outlined in a presentation OF the
case upon which the basis of the suit
is made, were that Arthur j.. Baker,
assuming control Of the management
OF the pillow cOmpany's affairs upon
his fathers death, had been indis-
Greet in buying certain raw com
modities which We're used In TIE
g. Ln
welding process was such that the
agri; 'itural implements broke while
being used. that the concern sold
plows 10 mail order houses. placing
the wares of these people into COM
petition Nth the article which sales
men OF the South Bend pillow con-
Germ were trying 20 sell. that the
corporation was unable TO qualify in
many states as a bona fde concern
because il did not have a board OF
directors, and that the trade of the
concern had fallen of so that during
the year 1915 IL actually lost money.
No Evidence Heard.
The contentious OF counsel for the
pillow company and Arthur d. Baker
and others tended 20 refute the
statements made by the plaintiffs
counsel. None of the statements for
either side were put in as evidence,
nor was there any testimony intro
duced TO suOstantiate the claims Of
the two contending parties.
Another ground on which the
plaintiffs base their suit is that Ar
thur d. Baker was not qualified TO
act as administrator Of his fathers
estate. that he was an usurper, and
that the provisions in the late w. Il.
Bakers will. prObated Il years or
Whereabouts after the death OF the
decedent, empowering his son, as
trustee 10 vote the stocks given
under direction Of the will 10 young
Baker and William c.. Oren, w. G..
Bakers sOn-in-law, was invalid.
To refute the forgery idea thrown
out by the plaintiffs counsel. the
defense stated that certain increase \
in salaries allowed at the meeting
ia 1900, were collected by members
OF the Casaday family who were
elected.
recital OF the financial condi-
ton OF the corporation from it's very
beginning until last year by the de-
Tense occupied the attention OF the
court. il was stated that the assets
OF the pillow company in 1902 we're
S9O1.231.93, while ON June 80, 1915,
the assets we're $995.T95. The year
Is dividends on the investment re-
turned during the years 1903 TO 1915
inclusive. as stated We're: $12.6OO,
$4,000. $4,000. $4,000. $3.50.
S1S.9OO, $4,000. S5O.4OO. $37,SOO,
Ss1. 500. S37.SOO. $31, 59e and in 1915
s14,490. The average yearly dividend
was S25,264.41. The average yearly
surplus kept on hand in the bank
was shown To be $74,973.
Ii was agreed that Judge Walter
A Funk. who is hearing the case,
should report a special finding OF
facts with the conclusions of law
thereto.
The case Friday appeared as if il
would consume three TO five weeks
for a hearing. The history of the
corporation will be gone into in
great detail. and practically every
transaction that has any remote
bearing on the case viii be aired in
the court room.