The Bridgeport evening farmer., 1916-09-27
Third floor

The petition says Burr & Knapp
 sold mortgages for the Georgia Loar
 & Trust Co. to various customers o1 the firm of Burr & Knapp and ir
 many of these transactions acted as
 egtnt for the Georgia Loan & Trus' Co.,; that Burr & Knapp also acted | in many cases as the agent of the Georgia Loan & Trust Go. in trans hitting payment to the mortgages in cases where the mortgagors had
 paid off said mortgages to the said fGeorgia Loan & Trust Go.
 Poor Dcpositors F1eeced? | That for many months prior to the
 failure of Burr & Knapp, the firm has
 received the mortgage papers from many holders of such mortgages for the purposes of collecting said mort.
 gages and obtaining the money from
 the Georgia Loan & Trust Go. and
 had sent same to the Georgia Loan &
 Trust, Co,
 l That such mortgage papers amount. | ed to upwards of s100.000;
 | That Burr & Knapp received from The Georgia Loan &r Trust Co. as its agents to pay said mortgages, up | wards of S100,000, but failed to pay over same, and used same for other
 purposes and had no portion thereof | on hand at thet ime of said fail
 ure,
 l Also, that after failure, and while
 Chamberlain was receiver and trus-
 tee in bankruptcy, many of flhe per- sons whose mortgages had been eb-
 tained by Burr & Knapp for the pur- | pose of collection and for the pay
 ment of which Burr & Knapp had re- | ceived funds from Tine Georgia. Loan | & Trust Co.,, but had failed to pay
 same over to the respective mertga- | gees, wrote or consulted Chamberlain | about said matter, and although | Chamber knew, or by the use e1 | due diligence could have known that | The Georgia Loan & Trust Ce. which | was, and is, a solvent corporation, was
 really indebted to said persons, and
 was legally bound to pay the respec- tive amount comprising said in debted- ness, despite the payments already l made to Burr & Knapp and which had not been paid owed by Burr &
 Knapp, nevertheless Chamberlain ad-
 vised them that their claims were | against the estate of Burr & Knapr
 and not against The Georgia Loan
 Trust Co. of which Chamberlain was l then a director or the president and
 The Georgia Loan & Trust O.. at the l direction of it's directors and officers 1 refused to pay said claims
 Cover Trust Co.'s Finances | The additional assertion is made that thereby many poor persons were
 induced to present claims against the
 estate of Burr & Knapp and not against The Georgia Loan 6 Trust Go. and thereby The Georgia Loan | 6 Trust Co. has been saved a large
 sum of money, viz: upwards of $60,- | 900, while said poor persons So mis- | led, will lose an amount equal there | to, except for such small dividends as may be paid them from the estate of Burr & Knapp, which dividends are estimated at this time as not to ex- ceed the amount of ten per cen tum.
 The fourteenth and final assertion l is that The Watervliet Hydraulic Go. | is the largest debtor to the estate of Burr & Knapp and Chamberlain is, and has been for fNeny years, presi- dent of The Watervliet Hydraulic Co. Petitioners have requested and de-
 manded of Chamberlain that he resign from his trust as trustee of the bank
 rupt estate of Burr & Knapp, so that a proper and disinterested person might be appointed who might insti- tute proceedings to recover all the as-