The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-08-18
AN ORDER SERVED ON II
Must Show Cause at Harneit Count
Court on the goth.
MANAGEMENT OF COMPANY CRITICISED
Officials Of the Raleigh Company Say The Suit
is an Attempt to Make Them Pay Claim
That They do Not Owe and That
They Will Resist in Courts.

An order was yesterday served on
the Raleigh Telephone Company direct
ing it to appear before Judge Robinson
on Thursday, August 18th, at Harnett
Superior Court, and show cause why a
temporary receiver for it shall not be
appointed. In the meantime the COM
pany is under restraining order to
prevent its disposing of any of it's
property.
This application for a receiver was
filed by the American Electric Tele-
phone Company, of Chicago, and is
based on the following allegations
1. That the Raleigh Telephone Com
pany was not regularly and legally or.
ganized.
2. That is has failed to make to the
Corporation Commission the reports re-
quired by recent laws.
3. That the defendant company owes
to the plaintiff $4,000 due by note and
protested, and $475 open account.
A. That it owes Crowder g. Rand ST.
700; Robellin q Co., $780, and owes
various other unknown accounts.
D. That the management of the Raj
eigh Telephone Company is inefficient
and inexperienced, and under the pres
ent management it cannot be run sue
cessfully; that men are in charge of del.
icate mechanism who know nothing
about it.
The plaintiff further claims that the
defendant is in imminent danger of in
solVency; that the company negligently
left holes in the street, so that woman
fell into one of them, and her suit for
damages is now pending in Wake coun-
ty court.
mat when plaintiff sold defendants
their apparatus they reserved title in
the same until paid for; that plaintiff
has demanded possession and defend
ant refuses to deliver possession.
On this statement of facts affidavit
was made for the plaintiff by Charles r.
Speed; and upon presentation of this
affidavit to Judge Robinson, on the 18th
of August, a restraining order on the
defendant was issued, forbidding the
agents, officers or attorneys of the Rail
eigh Telephone Company from disposing
OF any of it's plant or creating a lien
or mortgage on it, and ordering the de-
PENDANT to show cause before him at
Ellington on August 10Th, why a re-
ceiver should not be appointed
These papers were served upon Presi-
dent w. N. Jones yesterday Action lis
brought in Johnston county and is re-
turnable to the September term. Mr..
James ii. Pou and Judge r. B. Womack
are the attorneys for the plaintiff.
PRESIDENT w. NJ. Jones was seen last
night IN regard to the suit and he said
he looked upon it simply as an effort to
coerce the Raleigh Telephone Company
into paying a claim it does not really
owe. lie added: I'VE have ample money
TO pay 1T, and are willing to settle it upon
any Just basis; but the apparatus does
not come up TO contract and we are
spending much money having it put in
proper shape. We have had experts here
to examine it, and they sustain us in our
position"
One of the directors of the Raleigh
company said: Unfortunately for the
American company We have their contract
and correspondence and the testimony OF
experts as to their work. They have de-
layed us for months and ! think it very
likely that we shall sue them for dam
ages. Our losses on account of their de-
lays and imperfect work are heavy"
Manager Wynne said: 1.-THE reason Of
the suit is that the American Electric
Teiephcne Company wants us to pay for
apparatus that were not as represented
to US. We are having the deficiencies
corrected by another house and propose
to deduct the cost from what we had
agreed to pay the American company in
case its work had come up to contract
These corrections have been in progress
by us for three months past and we now
have our plant one of the best in this
country and will still improve it, Our
company is backed by ample capital and
is fully able to pay every cent we owe"