Weekly Arizona journal-miner., 1905-05-31
Court Declines to Rebuke Sale Order
(From Thursdays Daily.)

of attorneys for certain creditors
 against the motion to set aside the
 previous bankruptcy proceedings,
 which resulted in an order for the
 sale of the property.
 This latter action was taken by the
 stockholders, who allege they hold a
 majority of the stock, and who are
 represented in person by Benjamin
 Blanchard, and in court by Attorneys
 R. E. Morrison and IF Fitch. For
 the management and officers of the
 property Attorneys Hawkins and Ross
 attended the session. After hearing
 nearly three hours of argument from
 both sides the matter was taken under
 advisement by Judge Sloan.
 In reply to the motion to set aside
 the order of sale and in sustaining the
 oemurrer, Attorney J. N. Ross took the
 ground that the appellants had no
 legal standing in the matter. He
 explained in brief the history Of lhe
 present litigation, showing how the
 company had madea general assign
 ment of its property in favor of ere
 ditors, then of bankruptcy being Hd-
 judged, and the final order of sale. lie argued that the petitioners had be"n
 given ample time to adopt proeee,i- ings to check the action of the nan aeement prior to its having reached 'ts prcsent stage, and quoted numeroas authorities in support of his contention. He made a special effort to show that all claims to be met were absolutely honest debts of the company, and that each step in the proceedings had been regular and legal. He explained that the efforts of the opposed stockholders showed nothing to guarantee the pay ment of the creditors, nor to help the company out of its difficulties; that no attempt had been maGe on their part to correct the wrongs within the corporation, and that under the cita- tions he would show, the stockholders now opposing the sale had no stand ing in law. His entire argument was along this line, applied to the law in the matter and not to the facts. In conclusion he urged that his demur- Ter be sustained and the matter be fin ally settled as it now stands.
 For the petitioning stockholders At torney Fitch addressed the court, be- .uIslqo ussq pHq E0ldnI4usq 10 luam ginning by declaring that the adjudg ed by legal fraud, and was not an &C., tual act of bankruptcy, based upon the trust deed as given, quoting au- thorities to bear out his view. He SIX emfwy smfwyp emfwyr C urged that by influence of company officials local creditors with claims lggregating but about $500 presented their bankruptcy petition, when the had at the same time some s700 on deposit in the bank with which to meet these claims. He explained | that in the trust deed were g notes | of $1 900 each, payable on demand, which were not meant to pay creditors i with, but which would accrue to the | giving them.
 "Then what becomes of the rest of | the creditors not enumerated,' eonti- | nued the attorney. "To call that l trust deed general assignment is a nisnomer. That deed of trust was | never brought before the court at | all, or there would have been no such | as have taken place. That same deed of trust was the only basis for bankruptcy proceedings"
 Here the court called the attention | of the attorney to the fact that he was to reply to tbe demurrer and not | present the facts in the case, but prove his right to appear legally. Attorney l Fitch then quoted authorities to show under what conditions stockholders nave the right to act, urging fraud | md conspiracy, together with the i'm possibility of getting relief within | he corporation as good and sufficient of his positions in the natter in question. It was upon this ground that the argument was made 70 the noon hour.
 Judge Sloan immediately announced le would take the matter under advise nent, whish brought Attorney Robt. Morrison to his feet, when he explain d that an order had been made for he sale of the property May 27. He asked in view of this order what night happen to the stockholders.
 It was then explained that the sale ould not be concluded until after the ourt had made confirmation of it, and Tudge Sloan said he would not take etion on this point until after he had |