The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-01-19
A CREDITORS BILL FILED.
Trying TO Set Aside the Chatham Fur
nituTe Co.'s Assignment.

Some Strong Charges Made Against
President Wimpy-Claimed That the
Mortgage to Messrs. E. F. & R. P.
Lowell Was Made to Secure an In
debtedness Of the Company to It's
President, and That the Meeting of
the Directors Which Authorized the
! Assignment Was Not Legal or
Binding.
This morning the question of whether
a receiver shall be appointed to take
charge of the assets of the Chatham Fur
niture Company will be argued before
Judge Falligant in the superior court.
| A creditors bill has been filed against
the company by the unsecured creditors,
the object of which is to set aside the as
signment on the ground that it has not
been made in a legal manner. Judge Fal-
| ligant granted an order setting this morn
ing as the time for the hearing, and in the
meantime MIR. E. F. Lowell, the assignee,
is restrained from disposing of any part
of the assets.
The unsecured creditors in whose
names the petition is filed, are the Union
Furniture Company, the American Furni-
ture Company, the Phillips & Buttorff
Manufacturing Company, the Wolf &
Kramer Furniture Company, the San
sheimer Paper Company, and the Chatta-
nooga Stove Company. The Indebtedness
of the Chatham Furniture Company to
the companies in the order above named
is s4S5.75, sl02.50, S1304O, s47.0O, $1S,6S
and 500 80 respectively.
TO SECURE PRESIDENT wIdPY.
The petition sets forth that the mort
gage on the stock in favor of Messrs. Z.
T. and r. p. Lowell to secure a note for
! a, 1884, 6, which was executed Jan. IL,
1894, was made for the purpose of indi-
rectly securing a debt due by the company
to one of its directors, Mr.. w. z. Wimpy,
who is also president and general mana
ger. 1t alleges that Mr.. Wimpy is en-
deavoring through Messrs E. f. and r.
P. Lowell to create preference in favor
Of himself for a debt due him by the cor
poration.
The petition distinctly charges that
Jan. President Wimpy made state
ment to the petitioners, in which he
| showed that the Indebtedness of the cor
poration to.him was "a, 2s1 20, but that the
names of E. F. and r. p. Lowell were not
shown on this statement. 1t states also
that President Wimpy said at the time
that the entire Indebtedness of the cor
poration was embodied in that statement.
THE OTHER MORTGAGE QUESTIONED.
1t is charged that the mortgage of
81 900 on the stock to secure a note of
that amount given to Messrs. Garrard
| Meldrim & Newman is not a legal and
| binding obligation of the company, be-
cause it is charged if this money was due
that firm, it was due it asa compensation
for services and advice in the preparation
| of the mortgages, the transfer and the
assignment. 1t is charged that these
attorneys were never legally employed by
| the company and that they are not there
fore entitled to receive this compensation.
ACTION OF THE DIRECTORS NOT BINDING.
1t goes on to state that the action pur-
| porting to be resolutions of the board of
directors of the company, which author
lied the assignment to be made, is not,
in fact and law, the action of the com
pany, and is not binding upon the corpora
ton or its creditors, because the sO-called
meeting of the directors was not legal
| and bona fide meeting of the directors,
as some of the company's directors had
| no knowledge whatever of such meet
ing, and as they were not notified, and
did not know the mortgages were going
to be executed or were executed until
they read of it in the public prints.
1t is charged that President Wimpy,
Jan 3, assured the counsel of these petit
tioners that the company was ina per-
fectly solvent condition, and that should
it become insolvent at any time he said he
would notify them of that fact and would
in no way seek to prefer any one Of the
creditors to the detriment of the others,
'such promise having been given" is the
language of the petition, "by said WImpy
to lull your petitioners into feeling
| of security, and thereby give him
self more time to consummate his fraudu-
lent design" The petition alleges that
the assignment made in pursuance of
this fraudulent design is void and OF no
effect because in the list of liabilities to
the company the Indebtedness of the
company to Wimpy nowhere appears, and
| the law requires that when a corpora
ton makes an assignment the schedule
of its Indebtedness shall be complete.
WHAT THE PETITION SEEKS.
| 1t is stated that while certain rent notes
aggregating 81, 1869 were executed to
Messrs, E. f. and r. p. Lowell, no lease
between the corporation and these gentle
men is set forth in the deed of assign
ment; that although the president under
takes to say that the company is insol-
vent, as matter of fact the schedule
shows that the corporation was solvent
at the time of making the deed of assign
ment, and that Mr.. f. f. Lowell, the
assignee, has not complied with the law
in not giving bond in double the amount
Of the property.
The petition asks for these reasons
that these mortgages be declared null
and void and that the deed of assignment
be set aside; that a temporary receiver
be appointed until hearing and that the re-
ownership be made permanent thereafter;
that all the defendants to this petition be
restrained from interfering in any
way with the assets; that
the assignee be directed to turn
over to the court all the assets of the
company, and that the creditors who
bring the petition may have Judgment
against the company for the amount of
| their claims.
The petitioners are repres euted by
Messrs. O'Connor and O'Byrne, and Mr..
Walter G. Hartridge.
The franklin Savings and Security.
The Franklin Savinps aud Coo,,;.,.