The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1900-12-01

personal property Of the Scranton Lace Curtain
Manufacturing company.
We admit that William Creighton, one Of the
use plaintiffs in said Judgment, was a member
OF the board Of directors OF the Scranton Lace
Curtain Manufacturing company, but we CLAIM,
that Creighton and Burch, the Use parties In
said judgment, had the right to have said judg-
mcnt SO entered; that the judgment 20 entered
was to secure moneys that they had actually
supplied to the Scranton Lace Curtain Manufac-
turing company and paid on their behalf, and
the amount the sheriff was directed to collect on
said execution. TO wit: $C2,sI00s was the
amount owing to Creighton and Burch, and that
fact has been determined by a verdict in the
court Of common pleas Of Lackawanna county In
an iss,ic framed TO determine the amount owing
to Creighton and Burcl. That the Indebtedness
| fof which the said Judgment was entered was a
valid Indebtedness and the samc enforcible at
law; that the company was not insolvent at the
time OF the entry Of said judgment and the iss'i-
ing OF the said execution.
The defendants deny the allegations contained
in third paragraph Of plaintiffs BILL that there
was no authority at law for the entry Of the
judgment above referred to. and say that there
was full warrant and authority for so doing and
that the amount that the sheriff was directed to
collect on said Judgment was proper and corr
rect amount. and that fact has been determined
by verdict Of jury in an issue in Lackawanna
county, nm issue framed to determine tile amount
owing upon said Judgment. We deny that the
entering Of the judgment aud the issuing OF the
execution thereon was done for the purpose OF
having sheriff's sale Of the property, and then
having 1t purchased by the defendant, and 9th
ers and q new company organised which would
not include the plaintiffs in this case and the
other stockholders. so that the plaintiffs would
lose the amount invested by them in this COR
poration. The personal property sold on the eX:-
cution issued on said judgment, No. 44o, March
term. 1897, was purchased by Creighton anu
Burch. They caused the said personal property
so purchased by them to be sold at the highest
and best price that could be obtained for the
same, and the amount they SO received they
used In paying the indebtedness OF the Scranton
Lace Curtain Manufacturing company.
The real estate sold on said Judgment was
purchased by Charles II. Wccs in trust foi
Creighton and Burch. the estate OF Catherine
Winton and ". j. Anderson, trustee, aud the
same was not bought in the interest OF Creighton
and Burch alone, and neither the said william
Creighton nor Creighton and Burch had any
power or control over the said Charles f.Wellcs,
trustee, or Of the said property. new corlcr-
alton was organized and called the Scranton
Lace Curtain company lh organizing ;he said
company each and every OF the stockholders OF
the Scranton Lace Curtain Manufacturing COM
pany were invited to become subscribers for and
holders Of stock in the new corporation They
were subscribers for stock in the new company
who were not stockholders in the old company.
John NJ. kenmerer did not become sto"khold
CT. We informed and believe that Il. 5.
Robinson, s. b. Robinson and Aaron Mcdonald
were asked to take stock in the proposed new
company and declined.
The directors of said company knew that the
claim OF Creighton and Bulch was valid claim,
;nd that the judgment entered was on bond
given in July, 1906, to secure the said Creighton
and Burch for su:h sums as might be owing
them by tho said Scranton Lace Curtain Manu-
featuring company, and that said company had
no grounds to prevent a sale Of the property
on the said judgment. nor money in the treasury
Of the said company to meet the said obligation
To the fourth paragraph Of the plaintiffs bill
of complaint would say that we have no
knowledge Of what notice Stephen Chappcl may
have given to William ii. Taylor, receiver ap-
pointed by court Of common pleas OF l.acka-
wanna county. We deny that the said Herbert
W. Taylor was acting under the direction OF
John NJ. Kemmerer and William Creighton, and
we further deny that lie had any right, power
or authority to stay the said sale on the judg-
ment in favor of the Lackawanna Trust and Sale
Deposit company to the use OF Creighton anu
Burch.
1t is true that the real estate purchased by
Charles II. Weles rs trustee was sold to the
Scranton Lace Curtain company, but we deny
that the said company was formed in pnr-
suance of plan made by and between Will
liam Creighton and John NJ. Kemmerer prior to
the entering OF judgment in favor of the Iacka-
wanna Trust and Safe Deposit company. trustee,
to use Creighton and Burch. No re-organiza-
tion OF the Scranton Lace Curtain Manufacturing
company took place, but q new company having
new charter was formed under the name OF
the Scranton Lace Curtain company. John NJ
Kemmerer is neither stockholder, director or OF
fcer in the newly organized company, and we
deny that there was any understanding or agree
ment between the said Kenmerer and the said
Creighton or between any other persons that the
Scranton Lace Curtain Manufacturing company
property should be sold and a new corporation
formed. We deny that William Creighton has
made large profits by reason of any of the facts
set forth in the plaintiffs bill Of complaint or
in the organization Of the new company.