The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-01-03
SUIT COMPLICATED
Receivers Certificates
and Bonds of Saw Mil!
Both Attacked.

ton, and r. e. Lee and r. G. Law
renee, of Lumberton, were in Raleigh
yesterday on their way to AshevilIe,
tition of Forrest ct al VS.. the South
ern Saw Mill and Lumber Company
and w. J. Edwards, receiver. asking
the removal of Mr.. Edwards from the
trust. Others who went to ASheville
to attend the hearing before Judge
Pritchard were Mr.. +. H. BuSbee
who appears for certain creditors and
holders of receivers certificates and
Messrs. Edwards and 7. c.. McNealy.
who is the superintendent of the
Saw Mil Company.
The developments of the case have
been fully reported from time to time
in the News and Observer. A new
and most important turn will be given
to the proceedings today, however,
upon motion, which is filed by the
attorneys for the bond holders and
the trust company, which seeks to
have declared invalid and non-effec-
tive some thirty thousand dollars of
receivers certificates, which were is
sued by Mr.. Edwards, under the au-
thority of Judge Purnell There
were in all about 900 of receivers
certificates issued, but of these 500
600 have been returned to the court
since the hearings in the case COM
glenced before Special Master Sewall,
IN Lumberton, whose report was sum
married. yesterday.
Attacks Jurisdiction OF Court.
It will be noticed that the motion
the substance of which is printed be-
low, attacks the jurisdiction of the
court TO appoint n receiver and take
charge of the property in the first
iIN<f 1Y md i- in, inc lNo @
been the contention all along that
the several suits started in regard to
the companies of which the South
ern Saw Mill and Lumber Company
was one organized by the Atlantic
Seaboard Company were collusive
and not brought bona fde.
The motion says:
she Union Trust Company, trustee
under the deed of trust. Robert L.
Forrest. A. n. Chanler, ct al bond
holders. on behalf of themselves and
all Others of the bondholders and
move the court;
That the suit of the Carolina North
ern Railway Company against the de-
PENDANT, the Southern Saw Mill and
Lumber Company, which said suit was
consolidated with the suit Of Robert
l.. Forrest, against the said defend
ants, be dismissed, for that the court
had no jurisdiction under the alleged
Bill of Equity filed in that suit TO
have taken possession of the defend
ants property, appointed a receiver
and issued receivers certificates be-
cause:
First. The alleged Bill in said suit
was not judgment creditors bill.
Second The suit was not cogniZa-
bic in a Court of Equity for that it
is simply a suit brought by one credi-
tor, not on behalf of himself and all
others. but, as alleged in the bill
il was brought for the purpose OF
recovering the sum of $4,000 due
complainant, the complainant being
an unsecured creditor of the defend
ant corporation"
Third. The defendant corporation
could not waive its right to require
the complainant TO reduce it's claims
to judgment before proceeding in a
Court of Equity, in order to confer
jurisdiction upon the court.
Fourth. The bill discloses no
equities in that it is not within the
jurisdiction Of a Court of Equity to
continue the operation of an insolvent
private property.
Fifth. The complainant in said
suit had his complete remedy at law,
and the bill discIoses no equity upon
which to found the jusidiction of the
court.
Sixth. The suit as instituted was
nor properly before the court; proper
parties were not before the court; the
suit was a collusive suit, and the court
was without jurisdiction.
And the said compliments further
move tie court that each and every
one of the receivers certificates issued
in said suit by the court be declared
illegal and void rs prior lien upon
the property of the defendant and as
a claim against its estate or fund in
the hands Of the court, for that:
First. The court, if it had iurisdic-
ton to administer under the bill, the
assets Of the defendant, did not have
jurisdiction to issue receivers certi-
ficates to operate n private insolvent
corporation and keep it a going con-
Germ.
Second That the court did not
have the jurisdiction to create first
lien upon the property Of the de-
PENDANT corporation without notice
to creditors and mortgages, and be-
fore creditors and mortgages were
parties to the suit.
Respectfully submitted.
IREDELL MEARES,
r. e. LEE.
Attorneys for Robert l.. Forrest, ct
as.
EMPIE {: EMPIE,
Attorneys for the Union Trust Com
pany, ct. ais.
TO Attack the Bonds.
1t is understood that Mr.. +. II.
Busbee, of Raleigh, will today file d
bill at the Ashevi ellTtaoideta
bill at the Asheville hearing, which
Will attack the bonds issued by the
Saw Mill Company, and which are the
basis of the complainants' standing
i'm the court. This measure is con-
sidered by the bondholders to be
taken as a retaliatory move to Off set
the attack which they are making
upon the validity of the receivers Ger
tificateS Mr.. Busbee is understood to
a. .rA.oSnla 10 ilnn hnIlnI.s Of caEtA II