The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-04-12
RECEIVER FOR THE ANVIL.
Judge Barrow Made the Receiver
ship Permanent.


terday morning. the receivership of
Mr.. John Morris is continued and he
is instructed to collect and conserve
the assets of the insolvent corpora
ton.
The concluding argument for the
plaintiffs in the application for injunc-
ton and receiver was made before
Judge Barrow by Mr.. Robert j. Travis
and Immediately after Mr. Travis had
concluded, the opinion of the court was
pronounced. This was as follows:
1T seems to me that it is the duty
of the court to appoint a receiver in
this case because have been unable
to find any way by which have the
power to grant the relief that 1 think
the case demands without a receiver.
The conclusion to appoint a receiver
has been arrived at with great reluc-
lance, and it is only, as 1 have said
before, because l have no power to
require the defendants at this stage
of the case to do what l think equity
requires to be done.
THE officers of The Anvil are, not
only honest, but they are competent
this case, l don't know of any better
men that l could find in whose hands
to put such business. What is it that
demands in this case that a receiver
be appointed? There has been no dis
honesty, no fraud committed, so far
as the evidence discloses. by anybody
connected with the case. There has,
however, been a violation of the rule
for the administration of the assets of
a inc 10 TIT Of
the plaintiffs.
Claim Should Have Been Paid.
ain October, 1901, the claim of the
plaintiff, Slavery, became matured
obligation against the Anvil. 1t was a
claim for insurance on the life of her
father. The case from North Carolina
stands upon the same footing-it ac-
crued and became a matured obliga-
ton few days after the Slavery
claim. At that time, the Anvil was
insolvent, and it was known to it's di-
rectors to be insolvent, and, when
say insolvent, l mean that it's assets
were not equal to it's liabilities. The
familiar rule for the administration of
the assets of an insolvent concern,
whether a natural person or an arti-
fetal one, or the assets of a dead man,
require that payments should be equal
anu PiO-ldlcQ dInOllS Oil CldlillS VI llAC
same rank and dignity. In the familiar
instance of the representative of the es-
tate of a person who dies insolvent
and intestate; if he pays a claim which
is of lower rank and dignity to an
other, and leaves unpaid the claim of
higher rank and dignity, or if he pays
the whole of one claim and leaves him
self in a position where he can't pay
another claim of the same rank and
dignity, the rule is well-known to every
lawyer that he must make restitution.
The conclusive presumption, in such a
case, is that he had funds to meet
other claims of equal or superior rank
and dignity.
1.-The facts in this case show that af
ter the Anvil became insolvent, and af-
ter it was known to its directors to
be insolvent, the directors paid in full
three claims of equal rank and. dig
nifty with the Slavery claim, and the
claims of other plaintiffs, and paid
nothing to the plaintiffs. I can't see
any difference, in law, between that
case and the case where an admins
traitor, in administering the assets of
an insolvent estate, pays, in full, for
example, an open account against the
estate, and leaves unsatisf1ed a judg-
ment.
No Dishonesty Imputed.
81 don't put this decision upon the
charges of misrepresentation of the
funds of this corporation by the direc-
tors to their own benefit. 1 look upon
the payment of the note in the Citi-
zens' Bank as an unauthorized pay
ment-just as if they had paid it with
out their names being on it at all.
They paid Nelson; they paid Jordan,
and they paid Smith-all in full-and
these plaintiffs were not provided for.
Il think it was the duty of the di-
rectors, when they realized that the
concern was insolvent, to have mar
shalled it's assets. They should then
have made arrangements to pay
equally and pro-rata upon all claims,
according to their rank and dignity
those of the highest rank first. The
claims of these plaintiffs, so far as the
evidence discloses, were of the highest
rank and dignity. They should have
administered upon the assets in their
hands without discrimination in favor
of any one creditor against another.
Il can think of no better illustration
than the one I have given as to the
duty of the administrator of the estate
of an insolvent intestate. Substantially
the same rules apply to the directors
of an insolvent corporation when they
ascertain that a condition of insolvency
exists. If L had the power, at this
stage of the case, to make a decree !
would so order, and would direct, that
the claims of those plaintiffs be ad-
vanced enough to make them equal
with what has been received. by other
creditors holding claims of the same
rank. The difficulty which confronts
me is that this would be in the nature
of a final decree, and l am of the
opinion that 1 have not the power at
this time to make such decree. I
think this is what will have to be done
if l am correct in my view of the law
in this case. But it will have to be
done in the final decree. 1t could not
be done by an introductory order be-
cause it is the subject matter for a
final decree.
1T is, therefore, ordered that the ap-
pointment of John Morris, as receiver
of the assets of The Anvil be made
permanent, and that he give a bond,
with sureties to be approved by the
court, in the sum of two thousand, five
hundred dollars Cs2, 500), conditioned for
the faithful discharge of his duties as
receiver"
In accordance with the terms of the
decision, the books and other records
of The Anvil will be delivered to the
American Guild and such payments as
are made by that corporation to The
Anvil will be turned over to the re-
ceiver. Mr.. Morris will account for
their disposition.
-~-o-s-
MEMORIAL TO CHISHOLM.
Bar Association to Take Action