The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-01-30
EMBARRASSED FIRMS.
The Business Difficulties of Three Firms Con-
sidered in Judge Taylor's Court.

Judge Taylor told the attorneys interested in
the application for receiver on the part of the
Mauch Chunk Bank and others against A. L.
Wright & Co., to prepare papers for the appoint
ment, with the necessary bond He advised
them to select some one for the trust, and re-
port to him on Monday morning. If they could
not agree. he would select some one. All ques-
tons as to the validity of the mortgages will
come up hereafter, and if it appears they are
valid the Judge will direct the receiver to pay
them. If they are not valid, they must take
their place IN pro rata distribution.
In the same court the S. NJ. Rumsey Manu-
featuring Company, of ST. Louis, applied fora
restraining order against ]. Giles Smith, the
plumber. The complaint alleged that defendant
was lnsolvent and unless restrained would
mortgage his property in preference to certain
creditors. to the plaintiffs injury, to whom he
owed 5000. The restraining order was issued and
made returnable at o'clock in the afternoon
at which time defendant filed affidavits denying
the charges and asking to be relieved from an in
junction. Upon this action the plaintiff filed a
petition for receiver and the continuance of
the restraining order. The petition will be heard
to-day. Mr.. Smith says that his creditors will
meet Feb. 4, when a compromise will be
reached, as those representing 40 per cent of
the claims against him have agreed to this. He
places his liabilities at ST. 900 and his assets some
Judge Taylor also received further pleadings
IN the case of Emley g. Co. against w. @. Was
son and Others. The defendants filed their
answer and also ross-complaint the same
facts being alleged in both, but the crosscom-
plant calls for receiver. Mr.. WATSON alleges
that Finley came to him with false representa-
tions as to the value of the business He told
him if he would put small amount of cash
49, 500) into the concern, he could have
half interest by letting his share of
the profits pay for the remainder
of the value. After short experience WATSON
found that the business was not such as ne had
been led to expect Finley then agreed to- his
withdrawing and gave his note for the So, 500.
La time, Dir. WATSON says. the note fell due, and
he was about to sue upon it when Emley pro-
posed to organize a joint stock company. Was
son. for the $500, would be allowed large
share of the $50 900 capital stock, which is said
to be far in excess of the value of the
Plant and its business. He charges that under
the management of Finley Il Son the company
has become insolvent 1t is also charged that
there Is disagreement among the stockholders,
there being two alleged boards of directors one
with Emley as president and the other with
Thomas Chandler in that Office. At the stock
holders meeting in January Finley left because
| he Saw the management was going to be taken
| from him. WATSON states that he has advanced
$4,000 to the company, and that his claim is the
largest of any. There is a mortgage for $9, DOC
| on the plant The assets are $40 000 and
| liabilities $24, 000 The question of appointing a
receiver will be argued to-day.