The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-12

STANDS BY METHODS
In City Against WaterWorks the Re.
ceiyer Was Appointed Without
Hearing From the Owners
of the Property
There.

The matter of the receiversip of the
Fayetteville Waterworks Company was
heard before Judge Purnell in the Federal
Court yesterday and the receivership was
dismissed
This receivership had been ordered by
Judge Henry r. Bryan at Cumberland
Court, upon application of the City of
Fayetteville, and was done without no.
tice to the defendant waterworks COM
rany. The Fayetteville Waterworks Com
pany, the bondholders of which are New
Jersey people, applied to Judge Bryan to
have the case removed to the Federal
Court in order to ask dismissal of the
receivership. The bondholders being a
New Jersey corporation, out of the State,
and the amount involved being over $4,000,
Judge Bryan, as required by law. made
the order for the hearing in the Federal
Court
The matter has been before the Federal
Court for some time, and yesterday a
hearing was had before Judge Purnell.
The City of Fayetteville. on whose mo-
ton the receiver, DR.. H. w. Lilly, Of
Fayetteville, had been appointed, was rep
resented by Messrs. I. A. Murchison and
~ A. Sinclair, of Fayetteville, while the
defendant waterworks company was rep
resented by Messrs. H. L. Cook and
George M. Rose of Fayetteville, and
JaHes H. Pou, of Raleigh.
Preceding the appointment of a re-
ceiver the city of Fayetteville had brought
action to compel the specific performance
of a contract between the City and the
Waterworks company under an award OF
a Board of Arbitration for the acquire
ment by the city of the plant for the sum
of $4,000, while the Waterworks Com
pany held that the sum should be $135 ,00U
The waterworks plant in Fayetteville
had been placed in the city under con-
tract that at the end of ten years the
city could purchase the plant at the sum
named by three arbitrators. one selected
by the city. one by the waterworks COM
rany and the third man by these two.
The City named Mr.. Lawrence A. Will
hanson, the Waterworks Company Mr..
Walter L. Holt. and these two Major w.
=. Robertson, superintendent of the
Watcrworks Company at Wilmington.
These arbitrators agreed upon $4,000
as the price to be paid by the City to the
Waterworks Company for the plant. The
the figures of the arbitrator and named
$135OOO. Then it was that a receivership
was sought and this was granted by
Judge H. r. Bryan without notice to the
defendant company.
Besides the attorneys in the case there
were present yesterday in court Mayor
C. B. Mcmillan, Aldermen w. l.. Hawley,
ID. A. Mcmillan and ]. A. Pemberton, and
the receiver. DIR. H. w Lilly.
In considering the case Judge Purnell
declined to enter into the question of the
manner of the appointment. or the ap-
pointment of receiver by Judge Bryan,
but required that the attorneys confine
themselves to Tie question as to the
solvency or insolvency of the Waterworks
Company, misappropriat ton of income, if
such was to be shown, or other acts call
ing for the appointment of receiver
1t was upon this line that the examination
was made and the argument presented by
counsel, and after this the receiver was
dismissed by Judge Purnell.
After the argument the court remarked
that 'Tbe appointment of receiver I'M
der the Federal decision, 125 L. S. and 80
Federal Reporter and many others, is
matter largely in the discretion of the
chancellor or judge hearing the case, and
the State decisions are pretty much to the
same effect Hence this court will not
consider any argument looking to re-
view of the order of Judge Bryan, but
will say that it was correct and proper
as this court sees it, and no notice of the
application fer a receiver was required
on consideration of the bill But the