Norwich bulletin., 1911-12-08
WESTERLY AND ITS INTERESTS
Receivers Appointed For Narrow Fabric Company of Columbus Elect Oficers-Appeal From Verdict in Cravasreer Case-Town Councils Special Session Fail ed to Grant Final License.

After being in secret conclave for an hour and forty minutes, the council meeting adjourned without granting the coveted liquor license. In addi- ton to the other applications presented during the evening was one for a re- newal from Horace E. Sisson for 65 Main street Ths clerk was authorized to advertise the applications and a hearing will be held Dec 23.
 The Westerly Marrow Fabric com pany. in which about $60,Oo0 or local capital is invested. was brought into 1lae ffoodlight of publicity by the ap- potntment Of receivers. move to checlmatsL tue alleged attempt of a feW of th0se financially interested to sef rrossession of the property and freeze out the majority of stockholders But for the master play Of one who represents the majority Tn the matter of the receiVership, the property would probabIy have been sold at sheriff's sale and become the property or hold CTS of notes against the company ana al a price that would enable the for nation of a closer corporation. perhaps reorganization under a different name and utilizing the property for some other manufacturing purposes
 Suits had been brought against the Westerly Narrow Fabric company by the Washington Trust company and by Charles E. Sherman and others, with the peculiar feature that one of the plaintiffs as an officer of the company would be a, defendant in the same case iF which he was plaintiff
 There was hearing Wednesday be- fore Judge Tanner in the superior court at Providence on petition brought by Capt Walter H. Davis ask ing for the appointment of a receiver for the Westerly Marrow Fabric com pany for the benefit of all the stock holders and creditors Judge Tanner granted the petition over the appoint r-ent of receivers. the petition naming Judge Edward NJ. Burke of Westerly, and the other parties in interest nam ing Charles E. Sherman, also of Vest erly- Both nominations were approved The lawyers present were Arthur M. Allen and Rush Burgess for petitioner, Seeber EdwaTds and Harry B. .Assard for certain creditors and stockholders. James c Collins for respondent cor poration-
 The Westerly Marrow Fabric com pany was organized almost entirely by Westerly capital, 1t being represented that the preferred stock would pay at 1eost seven and one-hah Der cent and that the common stock would be a profitable investment The company was to exploit the new Steere looms that were to rev0lutionize the narTaw fabric industry, but which failed to come ID to the standard represented. The company was formed with paid fn capital of $S4, ,500 and a new mill building was constructed at a cost of S3T,o0o. The business was operated for IS months and at the end of that time it is alleged that all the cash paid in had been expended and the company wae fn debt to the amount of s50,0OO.
 The building and equipment valua- ton is estimated to be S40,00o and it Is possible that If good sale can be made of the property that there will be about t10. 900 for distribution to the preferred stockholders. but nothing for the con- mon As the company was hopeless1y in debt operation was suspended and the raw material and such machinery as was szlable disposed of, but the looms are still among the assets.
 It is understood that the Washing ton Trust company suit Is to recover on notes of s2.oo0 and that the other is a suit to recover on a loan of S15,50O, with Charles E. Sherman, Frank Sher- man, Dr. John F. Champlfn, estate of James Weloh and William Clark as the plaintin In these suits attachments were placed on the mill property last September and was so guarded that the fact did not become known until the publication of the docket of the November term of the superior court for Washington county few weeks ago.
 Captain Davis brought his petition for the appointment of receivers on the ground that Charles E. sherman one cf the plaintiffs in 8 suit against the Westerly Narrow Fabric company, was treasurer Of the company and had en- gagged counsel to defend the suit in which he was one of the plaintiffs: un- der the statutes the duty of Judge Tan ner was plain
 The chief promoters of the Westerly Narrow Fabric company are not the largest stockholders, some of them not investing over $500 in preferred stock, ard the general impression that some parties foremost in the movement to improve the industrial conditions of Westerly, and who believed in the hon. esty and stability Of the undertaking. had been heavy financial losers in the project, is not true. The real condi- tfcns will probably be known when the receivers complete their investigation preparatory to the disposition of the property.