The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-05-17
RECEIVER ENTERED SUIT.
Forced TO Do So at the Instance OF
the General Creditors.

the General Creditors.
The suit of Charles Meyer against the
Stevens-Clark Company, Frank H., E. c.
and Fred G. Clark and the Savannah
Foundry and Machine Company was filed
in the Superior Court yesterday. Tho
plaintiff in the suit is the receiver of the
cooperation first named in The pstition and
has been required to institute the action
by some of It's creditors.
The petition gees at length into the his
tory of the Steyens-Clark Company and
the several corporations by which it was
succeeded 1t charges that at the time the
Irst named corporation became insolvent
1t sent out a circular letter to its credi-
tors, in which ID was recited that the com
pahy was in perfectly sound financial
condition, but that as one branch of its
business had proved Improbable it had
been determined to close this up. A state
meht OF the assets and liabilities was APP
pended, showing the company to be in
good financial shape. This statement
showed the company to be indebted to e
Z. clark, the father of Frank H. Clark
the president of the Stevens-Clark Com
pany, In the sum of about $1,000 The cir
cular letter stated that the eder Mr.
clark was prepared to waive his Claims
TO a prompt settlement of this account
ana was willing to wait until the ether
creditors had all been paid
II Is shown that at about this time the
OMara Foundry and Machine Company
was organized ard chartered. 1t had prac-
ucaily the same shareholders and board
OF directors as had the Stevens-Clark
company and was engaged in carrying on
the same lines of business. It is declared
IN the petition of the receiver that the
plan pursued was for the Stevens Clark
company to purchase large quantities of
material, while its credit was still good,
and to transfer this as soon as practical
Die to The O'Mara Foundry and Machine
company. The name of this latter corpor-
alton was subsequC ntly changed to the Sa-
vannah Foundry and Machine Company,
ana under this name il Is still doing a
large business in Savannah.
1t is said that instead of carving out
the promises made to the creditors as to
the settlement of it's accounts, by rea-
son OF which they granted the Stevens
Clark Company an extension of time of
six months in which to make its pay
ments, the notes given by the O'Mara
Foundry and Machine Company for the
supplies turned over to IL by the Stevens
Clark Company were transferred immedi-
ately 70 E. c. Clark and in this way
claims against The latter corporation
were paid in full.
When the application for rule to COM
pei the receiver TO institute this action
had its hearing in the Superior Court it
was stated by Messrs. Oliver and Travis,
the attorneys who represent the moving
creditors, that there was nothing of posi-
tive or moral fraud imputed by them to
anybody. Their contention simply was
that the action of the officers and direc-
tors of the two corporations, in trans
ferring assets from the one to the other,
constituted a case of legal fraud and that
In
discharged in this manner might proper
ly be recovered and the money thus ac-
cruing distributed among the creditors in
general The assets that were distribute
ed did not prove in the long run nearly
sufficient 20 satisfy all of the claims in
full and it is the fact that the father of
the corporations president was preferred
and his claim settled, while theirs suf-
fered, to which the general creditors have
made objection.