The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-10-06
GROUNDS OF THE APPEAL
The Suit Now Goes Up to the Circuit
Court Of Appeals.
PAPERS WERE FILED HERE YESTERDAY
Maj Guthrie Says the Circuit Court Had No
Jurisdiction in the Case ard That He
Was Cut Off From Intr:du-
cling Evidence.
chg Evidence.

A month ago Judge Simonton, of
the United States Circuit court, order
eel the sale of the Blackwell-Durham
Tobacco Company property at Dur
ham, n. c., by Receiver Hill, for not
less than $4,000,000. This sale was to
have taken place on November 9Th,
and it was expected that the American
Tobacco Company would be the pur-
chaser.
The sale will not, however, take
place on that date, being stayed by an
appeal taken yesterday by Maj. VIM.
\. Guthrie in the case of George
Arents and others against Blackwell
Durham Tobacco Company.
The petition for appeal, which was
allowed, and the appeal bond of $3.50,
together with the assignment of error
were filed early yesterday morning in
the office of the clerk Of the Circuit
court.
The assignment of error sets forth
that the decree of September 4, direct
ing sale of the property and assets
of Blackwelfs Durham Tobacco Conn
pany, and the decree OF April 9th APP
pointing receiver, are erroneous ana
against the just rights of the defend
ant. w. A. Guthrie, for the following
reasons:
/. Because tie Circuit Court held that
it has Jurisdiction of the subject matter
of the suit and appointed a permanent
receiver.
2. Because the Circuit Court held that
the bill of complaint stated cause or
action within the cognizance of the equity
jurisdiction of the court.
g. Because the Circuit Court holds upon
the facts found by it that it had juris-
dia.ion to appoint a permanent receiver
and decree sale of the property
A. Because the court held that the legal
owners of a majority of the shares OF
stock in a corporation created by and
under the laws of North Carolina, when
the corporation is in active business and
solvent, and before the term of cor
porate existence has expired, and with
out having committed any of the statutory
acts forfeiture of it's charter, can invoke
the equitable power of the couIt to dis
solve the corporation and wind up its
business.
5. Because the court holds that the act
of the defendant Guthrie in threatening,
as citizen of North Carolina, to Retl-
ton the General Assembly of the State to
repeal the charter of Blackwelfs Dur
ham Tobacco Company and wind up its
business under the provisions OF the CON
stitution of the State, is sufficient to JUS
tify the court in appointing receiver
and decreeing a sale of the property
6. Because the court held in its order
to the standing master that he need moi
take testimony respecting the character
purroses and designs of the American
Tobacco Company, thereby preventing th<
defendant from showing that the Amer
can Tobacco Company was the owner Il
equity of the stock in BlackwelFs Dur
ham Tobacco Company, land the same
was for its use and benefit in the namf
of the compliments, and that the purpose
of the American Tobacco Company was
to foster and create an unlawful monopoly
and trust"
T. Because the court held that all neces-
sary parties were before it as parties tc
this suit to enable it to enter decree
directing tho sale of the property and
assets Of Blackwell's Durham Tobacco
Company when the bill had been dis
missed at the instance of compliments
as to certain stockholders of Blackwell
Durham Tobacco Company, and they werc
not parties to the suit.
g. Because the court held that it hat
jurisdiction to decree the sale of the
property and appoint receiver.
0. Because the court declined to hold
that the bill CT complaint did not stats