The news & observer., 1897-01-29
NO RECEIVER YET APPOINTED
The Action Against the Raleigh Paper
Company Continued.

What promises to be very long and
expensive law suit was begun yesterday
before Judge Robinson at Chambers here,
ON motion for the appointment Of a
receiver for the Raleigh Paper Company
| This company seems to be very much in
| debt and its affairs greatly tangled, and
| it lis probable that even after the receiver
is appointed and the court undertakes to
settle up the affairs of the company there
Will be big fight among the creditors as
| to priority Of their claims.
! The Raleigh National Bank holds first
mortgages for So, 500; the Vass estate
| has a claim also for $4,000 for material,
machinery, &c. This, it is claimed, comes
| in before the mortgage Besides this
| there are other claims, principally for
material for about $4,000. These latter
| creditors also claim priority over the
| mortgages.
But it was not for the settlement OF
these equities that the hearing was held
yesterday, but to determine whether or
not receiver should be appointed An
action was brought by the National Bank
of Raleigh to foreclose mortgages on the
| Raleigh Paper Company for So, 800 and
| the appointment of receiver asked for,
| pending foreclosure proceedings. The
bank in this action was represented by
| MIR. G. NJ Busbee and the defendant by
| Judge Boykin and Mr. Armistead Jones
and Mr.. w. G. Douglass; Judge Whitaker
appeared for the Vass estate and Messrs.
Il. III. Battle, w n. Jones, and r. 4.
| Gray in behalf of other creditors
The argument lasted for several hours.
| At its conclusion Judge Robinson. on
account of the absence OF Mr.. j. B. Brew
er, president of the company decided to
! take no action in the matter, but continue
the motion for a receiver until February
18th, when the hearing viii be resumed.
In this notice the Judge also ordered that
all the creditors of the company come i'm
and make themselves PARTIES TO the ac-
ton, so that the whole business of the
corporation may be closed UP in this pro-
ceeding.
The mills, situated at the Falls OF Neuse
about s miles from here, are very val
liable property, worth probably $4,000
They now have a good trade, finding sale
for all the paper they can make, but have
been in financial embarrassment for
sometime. They were established about
so years ago by a man named Jordan, but
were run for a long period by MIR. W. Il.
Askew. Then, after his death, they were
practically closed up until the Raleigh
Paper Company was formed.
The Raleigh Paper Company is a cor
p0ration of which Mr.. J. B. Brewer, of
Murfreesboro, is president and Mr.. J. n.
Holding, of Raleigh, is secretary and
treasurer. lit was incorporated in 1890,
Messrs. Holding and Brewer being the
principal stockholders. The mills were
run for three years by the company, and
in 1893 Mr.. Holding leased them for
term OF 6 years at $4,000 a year Since
making the lease he has put upon this
property over $4,000 of machinery and
improvements, having written contract
with Brewer i'm regard to these improve
ment. Mr.. Holding claims that it is the
violation of this contract that has
brought about the present embarrass-
ment Of the mills, Mr.. Brewer having
made a demand upon the National Bank
of Raleigh which holds mortgages upon
the property, to foreclose them at once
Brewer and Holding are sureties for
these debts, and Holding claims to
hold a written contract that Brewers
name should remain upon one of the
notes until 1898 and upon the other till
q later day.
The total liabilities OF the company will
probably aggregate $4,000. The assets
will reach $4,000, but Mr.. w. n Jones,
who represents some of the creditors said
yesterday that he did not think the com
pany would be able, under the present |
financial condition OF the country, ITO pay |
more than 80 cents on the dollar.
1t is certain that a receiver win be APP
pointed when the case is heard, and |
it is probable that Mr.. Holding will be |
allowed to retain his lease under the /
same conditions that he now holds it, if /
he so desires.
Prof. W. L. Poteat returned 10 Wake