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CHARGES SYSTEMATIC FRAUD Creditors of Defunct Globe Savings Bank Make Sweeping Allegations. NAMES CADET TAYLOR AS PRINCIPAL Alleges that He and Others Created Many Fake Companies to Evade Execution on Old Judgments. In an effort to recover on an old judgment for $1,405.19 and $88.60 costs, A. C. Wakeley and J. S. Cooley, attorneys for James M. E. Weckerly have been digging deep into the history of Cadet Taylor, present collector of customs at the port of Omaha, W. B, Taylor. his brother, Henry O. Devries and others. This history plaintiff relates in a petition is of such sensational nature that Judge Read yesterday granted an order restraining the Sherman & McConnell Drug company from paying rent to any of the defendants pending a hearing May 10, on an application for temporary injunction. Weckerly, who is said to be a laborer whose only income is the earning of his hands, in his petition, tells a long and somewhat complicated story which is in substance that the Taylor brothers were the principal movers in a scheme to defraud old creditors by shifting titles often, yet keeping them practically in their own hands. Plaintiff begins by relating that March 30, 1901, in district court he received a judgment against Cadet Taylor, Mount, Globe Loan and Trust company, Emma O. Devries, as administratrix, and the Globe Savings bank, for the sum above stated, which judgment is still in full force. Story of a Bond. It was, he says rendered upon a $50,000 bond executed to the state by the defendant, the Globe Savings bank as principal and Cadet Taylor, David T. Mount, Globe Loan and Trust company and H. O. Devries as sureties, about two years after the bank, which had been organized March 22, 1890, under the name of the Globe Loan and Trust Company's Savings bank, became insolvent and unable to pay its creditors. At that time, plaintiff avers, a state bank examiner, who later had charge of the bank, recommended applying to the district court for a receiver, but on June 26, 1896, the defendants, the Taylor brothers, Mount and Devries jointly and severally executed the bond above referred to, agreeing in It to settle in full all Habilities of the Globe Savings bank within three years of the date of the bond. By doing this they secured $55,000 assets and property of the bank, but when the three years were expired in June, 1899, plaintiff states, they failed to keep the promise to settle liabilities, among which was the plaintiff's $1,493.79 judgment. And they are, he alleges, still refusing to make such settlement. On April 5, 1901. he caused an execution to be issued on certain property the bank possessed and sold the same for the munificent sum of $8, since which time he has not been able to collect a cent more, although he tried it with another execution one week ago today. Formation of Corporations. A history of the Taylor-Devries evasion of executions is given and the chapter is one of the broadest and bluntest of his long petition. It sets out that Devries and the Taylor brothers in 1889 and 1890 embarked in various business ventures of a hazardous nature and anticipating the fact that these ventures might result disastrously to themselves and expose them to personal liability, in order to defraud their clients and customers and to provide an easy means of shifting about the title of their real estate and other assets, and thereby effectually defrauding their creditors, organized in the city of Omaha the following corporations: On November 8, 1889, the Globe Loan and Trust company, which became insolvent and ceased to transact any business about 1896. On March 22, 1890, the Globe Loan and Trust Company Savings bank, which became insolvent a short time after it was organized and whose affairs were taken in charge by the state bank examiner in 1896. On October 21, 1890, the Globe Building company On October 8, 1896, the Henryton Land company. On January 14, 1898, the Putnam Land tompany. On October 1, 1890, the Linwood Park Land company, whose control and management subsequently fell into the hands of Cadet and W. Beach Taylor and Devries. In all these ingeniously created concerns Taylor and Devries constituted the controlling element, associating other names with theirs only for the sake of appearances. Of the first, plaintiff says that one name, that of M. Eugene Culver, he believes to either be fictitious or a person not a resident in Nebraska, and he charges that the company became insolvent "through fraud of mismanagement," leaving debts and judgments that are still on the records. Of the Henryton Land company and the Putnam company, he says that the incorporations were simply hired to do the incorporating for the Taylors: that Cadet Taylor is prestdent and W. B. Taylor is secretary of the latter, and these companies and the Globe Building company were created, in 80 far as Cadet Taylor or Henry O. Deveries were interested and concerned, "purely for the purpose of defrauding the creditors of the Globe Savings bank and the Globe Loan and Trust company, and to afford the means and machinery to transfer the property and assets of the said several corporations from one to another, indiscriminately and interchangeably.' Some Sample Cases. In support of this allegation the plaintiff relates the history of several illustrative cases. He states that William J. Ijams and wife, on June 7, 1892, mortgaged lots in Oak Knoll east of Omaha to the Globe Loan and Trust company for $11,000, and that on June 15, just eight days later, the trust company assigned and conveyed the mortgage to the Linwood Park Land company, but without consideration, and that as part of the scheme to hinder the creditors the Linwood company brought an ac. tion in the district court in Douglas
