The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-04-17
DECLARED A BANKRUPT.
ADAMS DRUG, PAINT AND OIL co IN
THE HANDS OF A RECEIVER.


Appointed Temporary Receiver.
He VIII Remain in Charge Until
the Election of Trustee by the
Credftors-Dlrected to Assume Con-
troll of the COmpany's stock and
Outstanding Assets and Convert
Them Into Cash-COmpnny and It's
Officers Prohibited From Inter-
fering in the Management of the
/ Business.
The Adams Drug, Paint and Oil Com
pany has been adjudged bankrupt by the
United States Court. The case has been
referred to Referee in Bankruptcy A. H.
AlacDonell and Mr.. Edward S. Elliott has
been appointed temporary receiver of the
insolvent corporation.
The orders of Judge Speer embodying
these dispositions of the elements of the
case have been filed in the Office of the
clerk of the court here.
An account of the meeting of the COM
pany's creditors, he'd before the referee
for the purpose of taking testimony in the
case, has been given in the Morning News.
AT that meeting the now bankrupt COM
pany, after a hard fight, acknowledged
that il was in an insolvent condition and
consented through its attorney to be adju-
dicated a bankrupt and to have its business
wound up in a bankruptcy court Armed
with this consent and the testimony in
The case Mr.. Hartridge appeared before
Judge Speer in Macon and made the mo-
tons to have the company declared a
bankrupt and for the appointment of a
temporary receiver to take charge of and
manage its affairs. Both motions were
granted by the court and Mr. Elliott ap-
pointed temporary receiver.
The order appointing the receiver directs
that he take immediate charge Of all of
the stock in trade of the Adams Drug,
Paint and Oil Company, consisting of
drugs, chemicals paints, oils, builders
material and other articles and of the
fixtures contained In its two places of
business. 1t further directs that he as
sumo control of the accounts of the COM
pany and of its outstanding assets, includ-
ing all promissory notes that may be due
il. collect them as soon as possible and
reduce them to money. The stock in trade
is to be sold 10 the best advantage, at
either wholesale or retail, but in all in
stances for cash. The receiver is required
10 give bond in the sum of $4,000, which
is to be subject to the approval and ac-
ceptance of the clerk of the United States
Court.
The company and it's officers and agents
are prohibited. during the tendency of
the receiVership, from disposing of any
of the as cts or stock in trade, from car
rying on the business or in any way in
terfering with tine administration of the
corporate affairs by the officer of the
4 court. The receiver is appointed custodian
of all Of the company's property not spe-
chcally mentioned and consigned to his
4 charge, and will take possession as soon
Il as his bond has Leen offered and accept
ed which Il is expected will take place
some tine during the day. He will con-
tnue in charge until the election of
trustee Oy the creditors, which, under the
law providing for the selection of such
an officer cannot be done in less than ten
days from the date of advertisement of
the election and notice given to the cred
itors.
Under the order of the court, the further
proceedings in the case are referred to the
referee, before whom the meetings of the
creditors will take place and all other
business that remains to be done will be
transacted. The procedure in bankruptcy
IS trife cumbersome and hedged about
with many wholesome but time-consuming
restrictions, so that it is probable that
month or more will elapse before the bust
ness of the company is finally wound up.
The property of which the receiver is
directed to take charge includes that mort
gagged to trustees to secure the issue OF
bonds made some time ago by the COM
pany. The proceeds of the sale of these
bonds were paid over 10 certain of the
creditors, and these payments, which it
is alleged by the other creditors were pref
erences, form the main question in dis
pute and were the basis of the applica-
ton to have the company declared an in
voluntary bankrupt. If the preferences
are legal and valid the proceeds of the
sale by the trustee will, of course, be
subject to this mortgage; if they are not,
as the unsecured creditors contend then
the entire fund Will go into the registry
oil the court for division pro rata among
all who have Claims against the company.
In the meantime it is stated that there
as some disposition among those interested
III the case or a part of them to effect
composition, by which the claims of
the creditors will be settled on a certain
agreed basis and the company permitted
10 continue in business. Just what foun
uauon there is for this report could not
De definitely learned, but it comes direct
from one who is on the inside and pre-
sutnaply in possession of full information.