Coeur d'Alene evening press. (Coeur d'Alene, Idaho) 1907-1929, 1908-06-27
MORRILL, RECEIV-
ERSHIP is VOID
In B. r. Lewis Lumber Co. Case
Says Supreme Court

/
OF John cronan VS.. W. W. Wood,
Judge. and the B, r. Lewis company,
wherein It Is declared the act OF Judge
Wood In appointing a receiver In the
case OF the Exchange National bank
Of this city w. the Lewis Lumber
company absolutely null and void.
and has issued a writ Of prhibition
directing that the court Immediately
discontinue the receivershlp in this
case.
The action by the Exchange Ma
tional bank was brought for the pur-
pose of collecting a claim against the |
company in the dictrict court here
about two months ago. The bank.
at the time IL brought the suit, made
motion asking for the appointment
OF Fred morrill,. attorney for the
Lumber Go, as received. and the mo-
tion was granted and Morrill, APP
pointed as receiver.
John cronan was one OF the cred
itors of the b. r. Lewis Lumber COM
pany, and shortly after Morril had
been made receiver and taken pos
session OF the mill he instituted an
action against the company on a note
OF $1,000. and at the same time
moved that the appointment OF n re-
ceiver In the case OF the Ex-
change National bank against the
Lumber company be vacated and
set aside The motion was
argued at length before Judge
Wood at Standpoint, and after the
submission OF argument the matter
was taken by him under adviaement
When he rendered a decision. which
was a few days after the motion had
come up for hearing. II was In faver
of the reeeiyership and an appeal was
prosecuted by Cronan to the supreme
court. The contention made by the
attorneys for Cronan In the district
!. court and those upon which they
: prosecuted their appeal was that In
D the appointment OF the reeeIvershiE
e there existed collision between the
Lumber company and the bank. and
& that 1t was made for the purpose Of
n hindering and delaying creditors;
d also that the receiver was a non
n resident and an attorney for the com
o pany. and lastly that a receiver c0ult
4 not be appointed to run a going con
d Germ not a public service corpora
l. ton.
e The opinion rendered by the cour
,r Is yoluminous. covering over fort,
n pages of reading matter. but tn
lie court. after a lengthy duscnasion o
C. the various contentious raised BY IN
lie attorneys for Cronan. states that al
X ter a careful consideration OF the cas-
IN In all of its phases that the court Ia
Il arrived at the conclusion that a re
as ceiver can not be appointed TO ru
ID a going concern that Is a priyat
ID corporation. but that can only be don
a. in cases Of public serving oorpori
NJ tions. and that the court acted with
IN out Jurisdiction in appointing the RI
r. ceiyer-that the order IL void, an
Il. then issues a writ Of prohibition d
N. recting that the receivership be in
ck mediaiely discontinued.
Ne. According to the decision hande
he down BY the court. the recelverEhi
Ily BY reason OF the fact that the cou
Al In making the appointment exceeds
he bis Jurisdiction. Is null aud vo
at from the beginning, and this stat
m leaves the Lewis Lumber eompaI
In AT the present Just the same
Err though no receiver had been appoir
on ed, save for existing judgment by Il
X Exchange National bank against Il
be company in a position to 20 into
a court Of Law and prosecute bis elaI
be against It to a final terminate
What the result of the decision "
be is speculative. but the opinion {
pressed by those familiar with {
case and the Law applicable to II,
u that the creditors may now proce
against the company and prosecu
q. their claims TO q judgment. and
ion resources Of the company. under
at rection Of the court. be appllad
cen discharge OF the claims held BY I
old many creditors Of the company.
me John n Flynn and Earl Sand
!. are attorneys for cronan in the ca