Every evening, Wilmington daily commercial., 1921-12-09
ROBERT \. RICHARDS
W|lLYS RECEIVER
Appointed by Judge Morris TO
Administer corpora atoms
Affairs Hare.


Robert ", Richards was yesterday
afternoon appointed receiver for the
NillNs Corporation. chartered In Della
wat', un the application of four New
York hanhs.
iudNc iiush NJ. Morris. sitting In tho
i'edutnl count, IN stnting hts decision
remarked that he conceived that ON
,he admitted facts, aud under the laws
II Delaware. n. Interpreted by "a long
line OF decisions. no other course was |
vron 20 HIM
Tho points urgcd by the defendants |
w,rc. nrst, that there wcrc no tangible |
assets In this state and secondly, that |
an assets are already In the custody |
81 rccrlNora already appointed in New
Jvrsvy, New York and ohio.
ilouds Nv tho amount of $4,000. TO
cover costs wcrc uNcd 10y .hc court.
ln presenting the ease for the plain
ilns, tho chase National Bank. Equit-
nhlo Trust Co, New York Trust Co.,
nnd the Chemical National Bank all
,i New York. Attorney Eldon Bishcc
81 NVw York rocanitulatcd the events
lradlng up 10 the proceedings. He
shid that the defendant corporation
has been Ia financial difficulties since
iUhiuary 1, being unable 60 meet it's
obligations, Tho creditors. including
,he creditor banks. the merchandise
creditors, nnd the first and second
preferred stockholders. have In the
nivantimu done an that was possible
W ,n,sro tho necessity OF a receiver
shin, However, on n hin nled two
weeks ano by a Toledo savings bank,
A. FHIfIts.fH -.
siiairiut, which appointment was fol-
luwvd 10y ono in tho First New Jersey
oisiilutH, another in the First New
Work. district, and moro sccently still
sno Ia tho Northern District of New
Nvth, making four In alt
~ tho most productive branch of
thu business, the Auto-l.ito 60, is To-
snird Ia Toledo, another branch In
el racuHo, ana tho unfinished plant.
representing an outlay cf $4,000. .OOO,
" in Now Jersey, the four receiver
shliH have lvral and physical posses
sluh of all tho assets of tho company.
the application IN Delaware IL due
w. tho provisions of the Delaware law.
that receivers appointed IN the doml-
'ile ut the corporation shall take
lWssvHsion % all assets wherever To-
'hlpdi With tho exception OF land
situated outside OF the state,
lor the drfondants. Robert A. Thach
.i New York said that he was prepar-
81 ANA would illc an answer covering
we contention of tho company. the
uutrndnnts Ia this case. lie made the
point That there are mo- tangible assets
~ Delaware, an the actual assets he
inh ih tho hands of the courts I'm tho
Various Jurisdictions whore receiver
,hlps have heretofore been granted.
ll' stated that two alternatives faced
'ho detohhant either a successful plan
' feofkenlEation or winding up Of
We enaifs, In tho latter case, ne be-
ioNcd Il possible that there would be
. residue that would com. into the
hands of tho Delaware courts for dis
INTUITION, Otherwise he could see no
necessity for this additional receiver
chin.
~ considering tho points made hy
THO counsel for tho defense. .tuars
Niufris said that previous decisions on
tho records of tho court disposed O,
We two ChiCf claims made by the DO.
f'hanit, namely, that the lack OF as.
svt of the cuatodianship OF the tanrt.
'l' assets hy other courts would op,r.
hto t0 make the receivorship IN thi,
state unnecessary. A. the inabilit,
" nay 80 current expenses was ad
hiileh hy the defendant. Il made nj,
uutf Hh the matter clear, and he womb
saio 10 appoint a receiver.
Ahlircw Z, Gray. for the defendants
said that ho wanted 90 make IL clea,
Wat lhe proceeding was not a fricndl,
81 vnllusiNo one, as he understood IN.
iiN'l'ii IN" possibilities of benefit I,
~ Nnhcetncd' n an arrangement fo
sHiftins ca the business could b.
bfouNht about, had led % a willingness
ON thu part OF The plaintiff 10 defe
tho appointment ~ receiver in Del
nNhin, Moreover. he stated. as IN,
tah.ihle ussots are already IN cour
hhhea, the argument that the appoint
in"nt uf "A Delaware receiver would n.
he,vsnaiy 10 prevent waste would no
held
Nt richards, having been sent for
helu brief consultation with th
auuto in ufdcr 60 got an idea OF IN
r"ihis of tho case later announcin
hls acceptance OF the appointment.
Nsw York, Dec. ss.-Frnnk p. Ken
h,s1h, one OF two Rncillnry receiver
~ the Nillys Corporation in the Ne,
notk district. was removed al his re
'uvst yesterday by Federal Jude
hhVN. Francis q. Caffoy OF this cit
was named Go serve in his place. wit
Clc,nont q, Minlngcr OF Toledo. OH,
. previous eppuintoc.
fh" news on the classified pae
vii Interest you. too