National Republican. (Washington City (D.C.)) 1872-1888, 1877-06-22
LIVELY LEGAL TILTING.
THE CAPITAL PUBLTsHIN0 COMPAyF
COMING TO GRIEF

sharp Prncticing Between Paper Manufsc- |
turer and Newspaper Publishers-An In
junction Denied-On the Verge Of BANK
ruptcy.
Last Thursday George Hill, jr. through hi
attorney, =. W. Jones, ESQ.,, filed petition In
the Bankruptcy Court to adjudgc Tho Capital
Publishing Company bankrupt. Before the
necessary orler could be obtained The Capital
Publishing Company filed a bill In equity |
against Mr.. Hill to obtain q restraining order
returnablc yesterday morning at 10 o'clock.
The bill, stripped Of all It's legal paraphornn- |
liza, sets forth that J. N. Brown, previous to |
December, 1879, was business manager Of Tho |
Capital Publishing Company, and in that ca
pacity purchased paper from George Hill, jr.; |
that these parties conspired together to de- |
fraud the company, and to accomplish their |
purpose Mr. Brown made and delivered to Mr.. |
Hill promissory notes foi large sums Of money |
in pretended settlement of the moneys due
him by the company when there was no
such amount due; that Mr.. Brown, to pre-
vent the company from discovering the
| fraudulent transaction, falsifcd the books,
| and In consequence Of the conspiracy between
the two men the company has been induced to
ray to Mr.. Hill an Indebtedness which they
were induced to believe was much greater
than In truth II really was, and therefore gayo
notes for this excessive amount. The company
COucluue ny %N'nR thAt tney hre reauN 10 pay
all just debts which may be found due from
them to Mr.. Hill, and ask that he be compelled
to state an account and bring tho notes into
court.
In his answer Mr.. Hill admits some of the
immaterial allegations in tho bill. He
acknowledges that Mr. Brown purchased
paper from him and believes that through his
careful management the company was re-
| loved from the insolvency that II stood In
| imminent danger Of ut the time he assumed
| control. He stamps rs utterly false the charge
| Of conspiracy existing between Mr.. Brown and
himself to issue the notes and defraud the
company, and believes that the person who
made oath to the truth of the bill knew that
the allegation was false and untrue at the
| time he sworc to II; concerning the charge Of
| falscfying the books and making false repre-
sensations to induce the company to issue the
| promissory notes, he pronounccs II maliciously
| false. On the contrary, Mr.. Hill says that but
two notes were given by the company to him
since December, 1876, and both of these at one
| time, aud dated March PC, 1877. They were
drawn to the order of and Endorsed by Dom
| Piatt, in settlement Of the account that had
been long standing, and which had been eX-
amincd by the company and pronounced cor
| rect.
Further answering this paragraph of the
bill, Mr.. Hill says that he is paper manu-
facturcr and dealer, and rs such has been fur
nishing for several years different newspapers
published in this District with paper of the
same quality as that furnished to tho Capital
Company, and the price charged has been uni
form and precisely the same rates rs those
charged the Capital Company during the first
four years, and the allegation that he charged
more was in collision with Mr. Brown was
utterly false. He filed an account showing
the company was indebted to him in the sum
of Ss,0O7OI.
Mr.. Hill says that after repeated attempts
to collect the bill without result, on June 2
he instructed his attorney to notify the COM
pany that some adjustment satisfactory to him
must be made by II o'clock on June or he
would take coercive measures In regard
thereto. At that hour the attorney appeared
and asked an indulgence till June &, which
was granted, aud on that day the time was ex-
tended to June IL and again to June a. Dur
ing this time negotiations were pending for q
settlement Of the debt
The account was examined aud there was
dispute as to the accuracy Of the claim, and,
incredible as II might appear, (regarding the
plaintiffs bill of complaint,) on the morning
of the very day that this bill was filed the
complainant offered by his attorney to give
two notes In equal noieties fOrthe sum claimed
by Mr.. Hill, payable at one and two years, and
secure the same by chattel deed of trust upon
, all its property in this city. On the same day,
the company refusing to pay any cash 1.-THE
defendant requiring n portion) on account OF
the Indebtedness, Hr Hill proceeded to insti-
tute initial proceedings to place them In bank
ruptcy, and while thus engaged the subpoena
/, was served upon him.
, Mr.. Hill ayers that the company has pub
lishcd that its weekly issue is 10000 copies
, and he says that they obtained all their print.
, ing paper from him up to April last and that
, the regular and average consumption was
, sixteen rcanls per week, which would furnish
: only 1850 copies, and that the company |.
, either dcfnudins the public In making false
= statements, or him of i've reams of paper every
week since April, 1873.
In answer to the statement that the company
= Is ready and offers to pay all indebtedness
: Mr.. Hill says that it is false and intended only
! to deceive the Court; that the company Is
= bankrupt and unable to pay its debts, and filed
, the bill of complaint to invoke this aid of the
= Court thereon with view only to hinder, dc
!, feat, delay and defiaud its creditors. Mr.
Garnett appeared fer the company and Messrs
=. W. ID. Davidge and +. W. jones' for Mr.. Hill
= After the counsel for the plaintiff had spoken
. the Court did not deem IL necessary to hea
. from the other side.
His honor said that the merits Of the cas-,
! were so plain that further argument was no
> required. He dissolved the restraining order
and denied the injunction.
= Mr.. Hill, flush with victory, accompanied
=, by his counsel, went into the District cour
y and obtained an order from Justice Humph
reys on the Capital Publishing Company, t
, show cause why they should not be ad Judge,
= bankrupt, and made the order rcturnabl
,, | July &