The Covington leader. (Covington, Tenn.) 18??-current, 1921-02-24
HARD FOUGHT SUIT NOW
in Upton COURT

/ Savannah, Ga, and William Simon
ton, local attorney. administrator ad
Item Of the estate of A. f. Churchill
The suit was brought on behalf Of
the compliments by the legal firms
Of Metcalf & Metcalf and Riddick &
Riddick, of Memphis.
The chancery suit is the latest
chapter in the long story of the liti-
cation between the complainant COM
pany and the old Gulf Compress
Company, which was declared insol-
vent in the federal court at Memphis
following proceedings instituted in
1908 by Mr.. Churchill and other cred
itors and stockholders.
Among other orders issued in the
cause was one requiring all creditors
of the Gulf Compress Company to
file their claims against the com
pany. In pursuance of this order the
Merchants Cotton Compress e Stor-
age Co. filed their claims in two
petitions, one for $28,611.07, filed in
February, 1910, and the other in
July, 1916, for an additional debt Of
$69, 1890. An order was made re-
ferring these claims to special
master and ordering him to take
proof and report what was due. In
October, 1916, this master filed his
report allowing both claims in full
of the Merchants Storage Company.
Later Judge Mccall set aside the
larger of the two claims and the
matter was then taken to the circuit
court Of appeals at Cincinnati. The
higher court reversed the case and
upheld the finding of the special
master. Thereupon the Gulf Com
press Company and its receiver, G..
G. Hanson, sought to take the mat
ter to the, supreme court, but the
effort failed, leaving the Judgment
of the Cincinnati court in effect.
The death Of Judge Mccall occur
red just after this mandate reached
the district court and no action was
taken thereon until the special SEES
sion Of the court held BY Judge John
WI. Peck. Judge Peck entered a
judgment for the amount found to
be due by the special master with
interest, amounting In all to $751;
629.16.
1t is for rs per cent of this amount
that the suit was filed. This com
promise Of the claim is owing to the
sale Of the property formerly owned
y the Gulf Compress Company, and
an agreement whereby Mr.. Churchill
not only purchased most of the lien
claims on the property, but also
purchased most of the claims Of the
general creditors at rs per cent. on
the dollar. The sale Of the property
is set out in the bill as follows:
After the litigation against the
Gulf Compress Company had been
pending for d number Of years an
order for the sale of all its property
of every kind was ordered in March,
1917. The properties Of the COM
pany were thereupon advertised and
were finally sold in May, 1917.
Practically all Of the property was
purchased bv Mr.. Churchill, included
the lot being the property known
as the Coyington Compress Company,
located in this city.
The chancery court Of Upton
county is asked in the bill to order
this compress property sold to sat
isfy the claims of the complainant
corporation. The bill sets out as
reasons for this the fact that COM
plainant's claim against the Gulf
Compress Company was one Of two
not included in those acquired by
purchase BY Mr.. Churchill. 1t sets
out further that having acquired the
majority Of the claims against the
Gulf Compress Company, Mr.. |
Churchill was the only bidder for
the properties, with the exception
of one small piece in Louisiana, and
that the sale Of this, with the price
paid BY MFR. Churchill for the other
amounted to only enough /
to satisfy the liens against the COM
pany.
The bill recites that the two gen
eral creditors, whose claims had
neither been satisfied nor acquired
by purchase, were the Royal IN
surance Company and the Merchants
Cotton Press & Storage Company.
Both of these announced their dis
satisfaction with the terms Of the
sale and their intentions to file ex-
ceptions thereto. Thereupon, the bill
states, Mr.. Churchill entered into
negotiations with the two creditors
named and agreed to pay rs per
cent. Of such judgments as might
be rendered In their favor in the
court Of last resort Suits brought
both, BY the insurance company and
the storage company were then pend
ing in the circuit court OF appeals
At Cincinnati.
The agreement to settle these
on a rs per cent. basis
when finally rendered was entered
into, the complainant asserts, by G.
4. Fitzhugh, representing the Gulf
Compress Company, and 4. X. Rid
dick, for complainant. 1t Is further
claimed that later a written agree
ment was entered into bets ween
complainant and G. G. Hanson, agent
for Mr.. Churchill and manager Of
all the presses bought BY him at
The sale. This agreement confirms
The oral agreement already existing,
II is claimed.
When Judge Peck's final order was
entered and the representative Of
MFR. Churchill in Memphis was asked
TO settle the claim Of 1921 1928. 16 on
j rs per cent. basis by paying the
sum Of $40, 407.28. the request was
but it was proposed through
counsel to pay Is per cent. Of the
original Judgment Of $98,95O.97 If
would abate the inter-
sst allowed in the final order. This