Adolpho Hegewisch scandal

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Adolpho Hegewisch scandal - ' IB ARE THERE ANY MORE? Many Charges Made...
' IB ARE THERE ANY MORE? Many Charges Made Against Adolpho Hegewisch. Tales of domestic worry. Judge Jonas Hutchinson Makes His Divorce Debut. Many 8totis from the Courts That W1U Interest Those Who Seek the Law's Aid. MISDEEDS OALORE. The creditor of the United State Rolling Stock Company who hare in the last few day i filed several petitions in the United States Court making charges against dolpho Hegewich, alleging that be has unfairly con ducted the company i business, united in one big petition yesterday praying that Hegewisch be removed from his office. He is alleged to have mismanaged the business, incurred use less expense, been grossly partisan in conducting conducting its affairs, taken more in fees than he was entitled to, and in abort has so utterly failed in the task assigned him that there are no funds in the company's treasury to redeem the $800,000 of receiver's certificates due and payable on Jan. 1 of the present year. The court is therefore asked to order the sale of all the company's property that the claims of the creditors may be ea.isfied. The petition is filed by twenty-seven twenty-seven twenty-seven of the company's creditors who hold in the aggregate aggregate receiver's certificates for $150,000. It is first charged that the suit asking for a receiver receiver was instituted under a full understanding understanding and arrangement between Cyrus D. Roys, Vice President of the company, . and Hegewisch Hegewisch who had been for some years the President President of the company. The bill cf complaint filed by Boys was not verified and no affidavits were presented in support of its averments, and the appointment of Hegewisch Hegewisch was based, it ia charged, exclusively upon the consent of Mr. Bays and the corporation speaking under the direction of Hegewisch. The unsecured creditors, the petitioners say, were not made parties to the suit, and had no notice of the appointment of Hegewisch. However, they say that relying upon the constant representations of Hegewisch Hegewisch that the certificates issued to them would be paid at their maturity on Jan. 1, 1892, they did not consider it necessary to go to the expense and trouble of watching the methods of Hegewisch until quite recently, when informed that the certificates would be dishonored, and efforts were begun with the evident co-operation co-operation co-operation of Hegewisch to sell out the property without .making provision for the payment of the unsecured unsecured ceditora' claims. It is set forth that the roty statements by Hegewisch that the property property was worth more than $2,000,000 over and above its debts were'grosaly false, and necessarily necessarily operated to deceive the coustand tbt if Hegewisch was not conversant with the facts he was utterly ignorant of the true financial financial condition and therefore unfit to be trusted with further control of the company. Touching Touching the charges of extravagance it is claimed that while the business of the company has decreased tha receiver's office expenses have not been lowered. Hegewisch is said to have paid out at the rate of $25,000 per year for legal expenses, and receivership accounts, and while (he mortgage debt of the company is only $67,000 per year, the expenses expenses for salaries, office rents and legal ex peases peases has been over $125,000 per annum. hile the official statement shows the supplies on hand December. 181)0, were worth $i,47O,0uO the value of the supplies now on hand only amount to $400,000, leaving a disappearance, the petition states of over $l,UU0,Ui0 without paying a dollar on the rece.ver's cer:itijates. Specifics allegations of extravagance are then made, and it is charged that the receiver has misappropriated $l,ltX by payments on an account witii the American American Surety Company, which became surety . on his bond as receiver. Hegewisch is also alleged to liave paid out $10u,UU0 to creditors . who had attacked the company's assets wnen the legal title whs iu the receiver. Regarding his own salary of $1,000 per month, it is put down in black and win e that Hegewisch received received $23,182.12 in thirteen months, and this item, it is charged, over the salary allowance is largely fictitious and excessive, and that Tlpuftwiftph incurred no Much oTmnia n receiver, but on the presentation of w mere general vouchers on 'expense" 'expense" account, unsupported by any receipts or particulars improperly retained a large proportion of such excess and to that extent extent has fraudulently "increased hia own personal salary and misappropriated the money in his charge," to quote the language of the petition. Other and smaller sums be is alleged to have misappropriated, and paid ome receiver's ce rune-ales rune-ales rune-ales without leave of court. In addition Hegewisch is charged with issuing large quantities of commercial paper without authority, and for the purpose of cheating, hindering and delaying creditors employed counsel to resist rendition of judgments when no meritorious meritorious - defense existed. The petitioners also charge Hegewisch with being partisan in his conduct of the company's affairs, and fully committed to the accomplishment of the scheme now being promoted by the shareholders shareholders and bondholders, who seek to sell out the property in their own interest. In con-' con-' con-' elusion the Court is asked to order all of Hegewisch's reports re-examined, re-examined, re-examined, with full liberty to the petitioners to challenge the same. It is also asked that the New York office be discontinued, and that the shops at Hegewisch, Hegewisch, Anniston, and Decatur be closed because because of ihe constant lone in the business. The petition winds up by asking . that Hegewisch be removed and a suitable and disinterested person be substituted aa receiver. receiver. The petitioners are Grvi Bros. & Co., Carnegie, Phipps & Co., the Congdon Brake - Shoe Company, the Tennessee Coal end Rail- Rail- . road Company, Beach A Bistiop Oadoen Iron Company, Curtis Bros. & Co., Brunt A Balu, Berry Bros., Milo's Tool Works, Alexander . Stewart Lumbr Company, Decatur Cornice and Roofing Company, A. J. Kirk wood & Co., P. O. Dodge & Co., Rogers, Brown ' A Mer-win, Mer-win, Mer-win, A. French Car Springs Company, Wat-kins Wat-kins Wat-kins & Fuller Lumber Company, Anderson, Du Puy &. Co., Thayer Lumber Company, Cleveland City Forge and Iron Company, J. P. Sips' & Co.. D. A. & C. A. Goodyear, Helms-backer Helms-backer Helms-backer Forge and Rolling Mill Company, . Schoen Manufacturing Company, the Ons Steel Company, and the Depoet Steel and Spring Company, Rogers, Brown & Co. Receiver Hegewisch yesterday answered a somewhat similar petition, filed by Orris Bros. A Co.. criticising the conduct of the company s anairs. jae denies tnat be was engaged in the effort at reorganization of the company, and aays a plan he submitted for reorganization was not adopted by the stock and bond-holders, bond-holders, bond-holders, most of whom live in England. Tha interest due on the mortgage indebtedness, and on which default default was made, the receiver say, wo gut ixriamM to go oy default default that foreclosure might be made but because the company was unable to pay the money. Regarding the claim that the business of the company shows a loss for the year laai, uie receiver aays hewnotpre- hewnotpre- Kred to answer that, aa the books for 1891 va not yet been dosed. If there is any lose.

Clipped from
  1. The Inter Ocean,
  2. 17 Jan 1892, Sun,
  3. Page 16

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  • Adolpho Hegewisch scandal

    NancyM3292 – 25 Jun 2013

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