The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1922-09-30

H. IS to Be
ted
Nine Waterloo Company OF.
ficers 10 BE Taken Into
Custody for Alleged Con.
tempt of Court.
Ignored the Receivership

Arrest OF nine officers Of the Water
loo Creamery company for alleged
contempt OF court IN defyIng an or.
der 10 turn over their property to
Herbert s. Daniel. receiver. was or.
dered yesterday by the United States
marshal. on wrlts OF attachment
signed by Federal Judge Woodrough
In Norfolk. Thursday.
Men who were to be taken into GUS
tody are lie Roy Corliss, president;
Bert Il. corliss, vice president; Oscar
Wendstrand. treasurer. +. q. Kinney,
secretary; A. l.. Allen, Charles Burk.
land. Or. J. u. Fickes, George Cherry
and stephen s. Van Horn. directors.
They undertook TO continue opera.
tion OF the company. attempted to
raise funds from stockholders by
assessing $40 per share and Illegally
offered TO give security by trust deeds
covering the company's property in
return for these funds. the receiver
reported to the judge.
Hearing Saturday.
| All these acts were done after Sep
tember Q. the day on which Daniel was
named receiver, and after Daniel had
notified the officers and their attorney,
william J. Hotz, that d!r""'"-" no
longer could transact the company't
business without authority from the
court. ...
Sum OF Si03 on deposit In the Mer-
chants National bank, Is all that
came into the hands Of the receiver,
he reported
Hearing OF the nine Is set for to.
day In federal court.
Coriss is under indictment already |
for alleged misuse OF company funds. |
Affidayits filed in support of the
contempt order show copies OF letters |
dated September 16. sent to stock.
holders by lie Roy Corliss, calling
on them to advance $4,000 to fight
the receivership.
Letter to Stockholders.
"Do not let your stock go overheard
when $40 per share will save It," he
wrote. IF you don't, your entire In
vestment will be lost because re-
ceiyerships are 80 per cent disastrous
to stockholders interests. For money
advanced, you will receive trustees
certificates which is secured by all
property Of the company, subject to
existing encumbrances. II you haven't
the cash, loan your credit by sign
ing enclosed note"
Another letter from Corliss to Pc.
ter Witt 1915 Hickory street, asks
Witt to toin other stockholders in
buying some company property at Six.
teenth and Pierce streets, for 100000.
MY brother and | cannot handle 1t
ourselves now, as we advanced s40,-
900 in the past year, but we hold our
selves in readiness to put in money In
an emergency to carry the thing
through" Corliss wrote.
Petition OF Intervention.
A petition of intervention in the
Waterloo case also was filed yesterday
by Charles c. King, who obtained a
judgment of $5,S26 against the com
pany in Cotton county, oklahoma,
January 2S, 1922.
The Alamito Creamery company,
subsidiary to the Waterloo, is the
most likely source Of immediate rev.
cnue to creditors, Daniel reports, but ,
the Alamito has liabilities Of $71 500.
1t has accounts receivable OF $92,212,
the main item Of which is $4,000 from ,
the Nestle Food company, which is
secured to a Minnesota bank. Liti-
cation must ensue to settle this claim,
the receiver believes.
The Waterloo has an authorized ,
capital Of s3,000.000.