Arizona republican., 1903-12-17

The interest of the cOmpIalnantS in the stock was set forth along with the objects of the organization of the cor poration. It was also represented that
 the corporation held 975 shares of the Ashland Cattle company, of which
 there were 1000 shares and as the
 owner of this stock the company own
 ed and controlled 4,0S0 acres of land in
 Maricopa county made up of detached
 parcels ranging from forty to GAO
 acres. This is the land which in 9
 general way it was understood had
 passed from the farmers into the pos
 session of the sugar company and in
 the complaint it's value was fixed at
 $963.720. Then there is recited the fact
 of the trust deed given by the Eastern | Sugar company of the Detroit Trust
 company to secure an issue of bonds
 to the amount of $SOO,O00. Bonds to
 the amount of $132.000 were issued and
 a part of them are held by one of the
 compliments in this action. The rest
 of the bonds are in the treasury of the
 company and the complaint states
 that on account of the condition of the
 money market they could not be sold
 hence the insolvent condition of the
 company.
 The complainants say that they have
 made an inquiry among bankers and ] financiers and have become satisfied
 that conditions are rapidly changing
 for the better and that it will soon | be possible to make a profitable sale
 of the bonds if they are put into the hands of a receiver. It is represented | that the receiver with full power to negotiate the rale of the bonds could prevent the winding up and dissolution
 of the affairs of the company.
 ! The need of ready money for carry | ing on the enterprise is pointed out. 1 for the payment of debts. for the pur-
 chase of seed and for the satisfaction ! of the contract of the company with the American Construction company.
 The only property of the companv | it was shown, consisted of it's books and papers and office furniture at its registered office in Jersey City and at it's offices in Detroit and Phoenix. The | importance of the early completion of construction and the beginning of the manufacture of sugar IS pointed out. otherwise what might become valuable assets of the company would be de stroyed or wasted iu the attempts of creditors to recover their claims.
 Upon this showing the New Jersey court granted the application for receivership and appointed Cortland Parker of New Jersey one of the re- ceivers and Howard I. Shepherd Of Detroit the other. MT. Shepherd is the secretary of the company. The com pany, it's officers and agents were en- joined from selling, transferring or otherwise disposing of the property or from interfering with it's management by the receivers.
 The papers in the case were for Warded to Judge C. r. Ainsworth and
 were filed in the court of this dis ftrict where all the property of the company lies. At that time Judge Kent had gone to Clobe and the bil of complaint was sent to him there. On December 10 Judge Kent took an- cillary jurisdiction and granted the aD- plication in line with the order of the New Jersey court. The appointhent of Parker and Shepherd as receivers was approved for interlocutory pur- poses within the jurisdiction of this court their bond as ancillary receivers being fixed at S20OO
 It was further ordered that the com plainants should from time to time file in this court certified copies of all orders or decree of a general nature in any way affecting the property of the sugar company. The defendant company was ordered to transfer all it's property and assets books. etc. to the receivers and the company and it's agents were restrained from in any way dispOsing of the property or from doing any thing to interfere with the receivers in the discharge of their duties
 The creditors of the company were restrained from instituting any action or proceedings at law or in equity against the defendant company for the recovery of their claims.
 The Eastern Sugar company has al- ready executed deed to the receivers to all it's real property and also q bill Of sale for all it's personal property. These documents were filed by Judge Ainsworth last night in the office of the recorder.
 Mir Shepherd, one of the receivers. IS | expected to arrive in the city this morning. Though no word has been received from him regarding his plans it is expected that work on the sugar factory will be shortly resumed.
 It will be seen from the nature of the complaint and from the order of the court that the receivership was lloN Hiut lOI the IeSCul0S or anything l from a wreck, the object of most re ceiverships, but to make sure the as- sets of the company and to carry for | ward the work for which the company was formed. It is believed that under l the new arrangement the sale of | the remaining bonds of the $S00,O0O is sue can be affected.
 The principle Arizona creditors of | the company are F'iheld & Gallagher | and the Alhambra Brick company. The | total contract price for the construc- | tiOn of the factory was $5SS,2OO to | which was to he added any sum in | excess of S60,OO0 which the construc- | tion company might have to pay for | freight. It was estimated that the | sugar company would have to pay as much as $60,OOO. Payments were to be | made to the construction company as | follows: s50O0O upon the execution of | the contract; $26,00O when required by the construction company to pay for certain machinery; s25,OOO upon the completion of the foundation for the main building and thereafter the con- structiOn company was to receive S5 npr cent of the total value of all