The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-08-09
SUIT MAY BE INTERESTING.
Aberdeen Mill Receivership in the
L. s. Courts.


An order granted by Judge Speer in Ma
con was received for record by the clerk of
the United States court here yesterday.
The order authorizes R. f. Storrs. receiver
of the Aberdeen mill a Poulau, to issue n
receivers certificate for $500 for the pur-
pose of defraying necessary expenses con-
nected with the receivershp.
The papers transmitted with the order
show that John G. McPhaul. the principal
defendant, opposed the granting Of the or
der. This is only an item in what prom
ises TO be an interesting piece of litigation.
The papers in the case show that Mr.. Nc
Phaul, a leading citizen and wealthy
manufacturer of Pou4an, Worth county,
entered into an arrangement in 1897 with
J. Howard Bromley and other parties OF
Philadelphia for the purpose of locating
cotton mill at Poulan. Mr.. McPhaul
agreed TO erect mill building at a cost
not to exceed $4,000 on a lot of land owned
by him at Poulan. Mr.. Bromley was to
furnish the mill machinery and to lease
the mill property from McPhaul at an an
nual rental of per cent, with the option
Of buying it at an agreed price at the end
Of that time. A $I00, coo corpora ton was to
be organized Mr.. McPhaul did not take
stock in the company, but was given the
option of doing so in exchange for his mill
property.
Mr.. Bromley and his associates organized
the company and seventy-four looms were
furnished by Bromley, for which he receiv-
ed $500 of stock. The company was
without funds, however, and an agreement
was entered into between Messrs. Bromley
and McPhaul to put the entire property
into the hands of G. G.. Miluor Of Pittsburg
for the purpose of making an Issue of $i5.-
90 of bonds, from the proceeds of which
Mr.. McPhaul was to receive $4,000 in cash
and 81 600 in bonds in return for the prop
| erty contributed by him AS a preliminary
! to securing the issue of bonds Bromley de
sired McPhaul to sign a trust deed TO Mill
nor, claiming that this was necessary 10
making a deal TO dispose of the bonds
This Mr.. McPhaul declined to do on va
rious grounds and Bromley and his asso
ciates secured the appointment of a receiv-
er by Judge Speer on the ground that they
had been damaged by the action of Nc
Phaul in failing to keep his agreement.
and that a receivership was necessary 70
the protection of their interests.
Mr.. McPhaul in his answer. asserts that
Bromley never made good his promises
in the matter. That he did not succeed in
organizing a 100000 corpora ton; that he
did not put the amount of machinery in
the mill which he had agreed to put in;
that the machinery put In was of an OBJ
solete type and unfit for the work for
winch il was pIOpOseu 10 use H. anu MOI
worth the amount at which il is estimated
by Bromley in his petition. He denies
having agreed to make a trust deed for
the purpose of securing a bond issue, but
shows that he stated his willingness to
sign such a deed whenever the issue OF
bonds had been placed. He asserts that II
would have been impossible for Bromley
or Milnor to have placed the bonds under
any circumstances as the property on
which it was proposed to make the issue,
was worth much less than the amount
proposed. As he was not a stockhOlder
in the Aberdeen mills Mr.. McPhaul OBJ
jected to the placing of his property in the
hands of a receiver for the failure Of the
mill enterprise in which he was concerned
only as a creditor. Judge Speer, however,
appointed Mr.. r. r. Storrs temporary re-
ceiver. and afterwards confirmed him as
permanent receiver. The case cannot be
heard before fail. Erwin, duBignon, CHS
holm e. Clay of Savannah and D. H. Pope
of Worth county are attorneys for Mr.,
McPhaul.