The Montgomery advertiser., 1906-08-09
CREDITORS FILE A BILL Cordage Company in Bankrupt Court. TO RESIST PROCEEDINGS : Judge Jones Names T.J, Reynolds
 as Receiver.
  Alleged That Montsomery Estabiish- ment which Leases conviets Lack cd Fnnds and Was Forced to
 suspend work.
 

On petition of certain of its credi- tors Judge Thomas G. Jones of the United States Court yesterday morning made an order to the Alabama Eordage dustries of Montgomery. to appear on August 23. and show cause why 1t should not be adjudged bankrupt,
 Meanwhile Thomas J. Reynolds, Free ident of the Fourth National Bank. one of the largest creditors of the com pany, was appointed receiver Of the cordage Company and made bond of s1,0o0 for the faithful performance or
 Counsel for the Cordage Company willnresist the bankruptcy procee1iugs.
 The creditors filing the petition Fourth National Bank, F. E. Johnstone & Go. and Dowdell & Joseph. all or Montgomery. The petition shows that the company is due the bank S4,0O0 on wS sssass o ssans nG'ss Pr SS
 Company, $500 on promissory note due July 80, 1906 The amount of the claim of Dowdell & joseph is not stat
 Aileged Act of Bankruptcy.
 As an evidence of the commission of an act of bankruptcy the petitioners state. That within four months pre- ceding the date of the filtng of this pc, August, 1906, the said Alabama Cordage Company, while insolvent, committed an act of bankruptcy in that It did Trust CO, a corporation. as a payment on the deht which 1t owed to the said Montgomery Bank and Trust Company, the sum of $500. the payment of which constituted preference in favor of the said Montgomery Bank and Trust Com pany and the said Alabama Cordage Co. did at divers times within the past four months pay to divers persons di- vers and Stindry sums. the exact amounts and dates of which are uns known to petitioners, which payments constituted a preference in favor Of said persons, so that by reason of said payments they were unable to get a larger portion of their claims than can be paid to or realized by your pett- tioners and other creditors of said Alabama cordage Company out of its
 The property of the cordage Com pany IS described by the petitioners as consisting Of about six acres of land in North Montgomery with the build suitable for the manufacture of cord. twine and rope. all of which Is valued at about s2o,00o. and books and book accounts to the value of about $2,000.
 Company Leased C0nvfcts.
 The reason given for the necessity of the Appointment of a receiver are that the Cordage Company has sus- pended operations at its plant for fack of sufficient credit <and capital to operate same, and 1t has contract of some kind with the State of Alabama for the hire of a large number of con- victs to wit, thirty convicts, or more, which it Tfcw has under it's control or direction by reason of said cqntract, and it will be necessary for the best interests of the creditors Of said estate to have some person who can arrange for fire insurance on the buildings and machinery on said property and ar range about some disposition of ana care for said convicts. and collect the accounts. and chose9 in action due to
 Upon hearing the petition Judge Jones made an order appointing Mr. Reynolds receiver of the company and directing the Cordage Company to ap- pear in his court on August 23 and judged a bankrupt a
 The stockholders of the Cordage Company are Sloan Yclng, a former ontgomerian who now makes hts home in New York. Frank McDonald, the estate of the late Donald McDon- aid, J. I. Mckinney and Sam sabel of Montsomery and M: MT, officers of the company are sloan Young, President: Donald McDonald Vice-P President. and Frank Mcdonald, Secretary and Treasurer.
 The large plant of the Cordage Com pany near Riverside Park has been fe- garded as one of the prosperous indus tries of Montgomery.
 Frank Mcdonald. Secretary and Treasurer of the Corbdage Company said that allegations made by credi- tors. that the company is insolven' was without foundation. He said that President Young of the company had