The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-08-11
RECEIVERsHIP QUESTIONED.
Suit Of the First National, of Mauch Chunk,
Against the Encaustic Tile Company.

Yesterday the First National Bank. of Mauch
Chunk, Pa, filed a complaint against the United
States Encaustic Tile Company and John L.
Mothershead, in which it is stated that the
defendent company had, prior to July "a, 1884,
become indebted to divers parties in sums aggre-
eating $3.50, 900. 1t is then set forth that, on the
day named, James G. Douglass, John Dunlap,
stockholders of the company, and Isaac n. Pat
tison, creditor thereof. prayed for the appoint
ment of receiver for the company. When this
application was filed in the Superior Court, it
was in time of vacation, and no called CT special
session or term of said court was held to take
action on it. 1t is alleged that no summons or
other process was issued by the
clerk of said court, and that
with the petition was filed the an
swer of defendant company admitting all al
legations and confessing that a receiver ought to
be appointed. With these papers the attorneys
for both compliments and defendant went be-
fore the Hon. Lewis G. Walker, Judge of
Superior Court No. 8, in chambers, and in the
presence of James G. Douglass and William w.
Lyon, asked for receiver, which was granted in
the appointment of defendant Mothecshead. It
-
were drawn by one and the same person, and
that the appointment was made in accordance
with previous agreement between the parties
concerned. Mothershead took charge of the
property and began his service as receiver. The
complaint then details the judgments obtained
against the company by the National Park Bank,
of New York. w. G. Warren and other creditors.
The plaintiff claims that said appointment
of receiver was null and void, and alleges want
of jurisdiction on the part of Judge Walker. A
claim is made that the judgments referred to
and the executions thereon are liens upon the
property of the tile company, in the order of
their rendition.
The complaint alleges that on the 10Th day of
May, 1885, after said judgments and executions
became lien, the United States Encaustic Tile
Company filed an answer to the complaint of
Douglass, Dunlap and Pattison, which was for
the purpose Of having ratified all proceedings
taken in the case during vacation. decree was
then given confirming Mothershead as receiver.
The plaintiff then states that failure to enforce
its judgment by execution on the property of the
company was caused by the receiver,
who is now in possession, refusing to
allow the sheriff of Marion county
to make a levy said property 1t is
further alleged that if the said Mothershead
undertakes to sell the property of the company,
or if the sheriff undertakes to enforce the lien
of plaintiff by virtue of execution, confusion
and doubt as to the validity of the sale will ensue.
1t is sought by the First National Bank of Mauch
Chunk to have the receivership declared null and
void, and the judgments referred to pronounced
valid. Plaintiff asks that sufficient portion of the
property be applied to the payment of said judg-
ments, which, it is asked, shall be given prefer
ence above any rights Mothershead may claim
as receiver.