The age-herald., 1898-11-05
". E. LEAKE NAMED :. AS RECEIVER Of the Gi|reath Coal and Iron
 Company BYCHANCELLOR CARMICHAEL On the Petition of the Union Bank & Trust Company of Nashville
 Claims of Fraud in Organi-
 zation of Company.
BYCHANCELLO OR CARMICHAEL

Late yesterday afternoon Chancellor Carmichael, upon bill filed by the Union Bank and Trust company, of Nashville, Tenn, appointed W. E. Leake as receiver of the Gilreath Coal and Iron company. The bill names as respondents the Gilreath Coal and Iron company Beton Gilreath, Julia M. Gilreath and A. C. Howze as as- signee of the Pocahontas Coal company, and is quite a lengthy one, and asks the relief prayed for on the following alleged statement of facts:
 That the complainants are the owners of judgment of s7OOo against Belton Gilrea th up on which numerous executions have been issued and returned by the sheriff mo property found." That A. C.. Howze, as assignee, conveyed to Belton Gi1reath, trustee, on the S1st day of December. 1897, certain properties valued at $14S0O, and ,nat on the 11th day of January, 1898, Bel ton Gireath, trustee, sold and conveyed said property by deed to Julia M. Gilreath, his wife, for consideration of $5, and the alleged claim that the money paid to A. c. Howze in the aforementioned sale was fur nshed by Julia Nj. Gilreath with the under standing that after title to said property. was vested in Belton Gireath he should tobFCy thC sriiiS u 1h. 1AiiSdi HID wife, and that this deed was made in exe- cution of such alleged understanding.
 The bill further alleges that on the 22nd day of January, 1898, Belton Gilreath pro- cured and caused to be formed and organ ized the Gilreath Coal and Iron company with capital stock of $25, 1000; that Julia M. Gilreath subscribed for 14S shares of the par value of s10O per share, in payment
 
 yeyed by Howze, assignee, to Belton Gill reath, trustee, and by him transferred to her; that Belton Gilreath subscribed for one share and D. H. Cabaniss subscribed for one share.
 The bill further alleges that the formation of said corporation was but scheme and device on the part of Belton Gilreath to hinder, delay or defraud his creditors by hiding out out or covering up his assets and property, under the guise of a corpora tion, and that said organization is a mere form and a fraud upon the incorporation laws of the state of Alabama; that in truth and in fact said property belonged to and is solely the property of Belton Gilreath, who is managing the same as president and general manager of said corporation, and same is under his sole and absolute control, and that he is collecting the moneys and profits arising from the operation of said mining properties and appropriating it to his sole use and not to the payment of his creditors, and petitioner in particular.
 That said Belton Gilreath is removing from said lands large quantities of coal thus irreparably injuring the same and inn pairing its value, and that unless the court takes charge of it through its receiver compliments will lose their just claims.
 These premises considered, orator prays that the court appoint a receiver, who shall take charge of the properties standing in the name of the Gilreath Coal and Iron company, and that the deeds from Belton Gilreath, trustee to Julia M Gilreath, and from her to the Gilreath Coal and Iron company be annulled and held as naught.
 That said property be decreed to be the property of Belton Gilreath and subject to the payment of .complainant's judgment and the interest thereon.
 It is further prayed that Julia M. Giireath and Belton Gilreath be required to surren- der to said receiver said shares of stock and all property of the Gilreath Coal and Iron company for such other general relief to which 1t may be entitled.
 The bill alleges that E. H. Cabaniss, who was a subscriber for one share of the capital stock of the Gilreath Coal and Iron company, was totally ignorant of the al legged fraudulent intent and purpose of Bel ton Gilreath in the formation of said cor poration and compliments exempt said E. H Cabaniss from any knowledge or notice whatever of said alleged fraudulent intent and purpose.
 The court required the compiainants to
 NH axa6 inc bond of the receiver at 5000, both of which were promptly made.
 The property of the Gireath Coal and