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NO RECEIVER YET APPOINTED. The Action Against the Raleigh Paper Company Continued What promises to be a very long and expensive law suit was begun yesterday before Judge Robinson at Chambers here, a on a motion for the appointment of receiver for the Raleigh Paper Company. This company seems to be very much in debt and its affairs greatly tangled, and it is probable that even after the receiver is appointed and the court undertakes to settle up the affairs of the company there will be a big fight among the creditors as to priority of their claims. The Raleigh National Bank holds first mortgages for $22,500; the Vass estate has a claim also for $12.000 for material, machinery, &c. This, it is claimed, comes in before the mortgage. Besides this there are other claims, principally for material, for about $10,000. These latter the creditors also claim priority over mortgages. But it was not for the settlement of these equities that the hearing was held yesterday, but to determine whether An or not a receiver should be appointed action was brought by the National Bank of Raleigh to foreclose mortgages on the Raleigh Paper Company for $22,500 and the appointment of a receiver asked for, pending foredlosure proceedings. The bank in this action was represented by Busbee and the and Mr. Judge Mr. C. Boykin M. Armistead defendant Jones by W.C. Douglass; for the Vass W. N. Jones, and appeared R. H. Mr. Battle, estate Judge and and Whitaker Messrs. R. T. Gray in behalf of other creditors. The argument lasted for several hours. At its conclusion Judge Robinson, on account of the absence of Mr. J. B. Brewof the to take in the matter,but er,president no action company,decided continue the motion for a receiver until February 13th, when the hearing will be resumed. In this notice the Judge also ordered that all the creditors of the company come in and make themselves parties to the action, so that the whole business of the corporation may be closed up in this proceeding. The mills,situated at the Falls of Neuse, miles from here, are very worth about uable property, 8 probably $80,000. valThey now have a good trade, finding sale for all the paper they can make, but have for been in financial embarrassment were sometime. They established Jordan, about but 50 years ago by a man named were run for a long period by Mr. W. F. Askew. Then, after this death, they were closed up until practically formed. the Raleigh Paper Company was The Raleigh Paper Company is a corporation of which Mr. J. B. Brewer, of is president N. of is Murfreesboro, Holding, Raleigh, secretary and Mr. J. and It was incorported in 1890, and Brewer treasurer. Messrs. Holding The mills being were the principal stockholders. three years by company, run 1893 for Holding the them for and in Mr. leased a term of 6 years at $3,000 a year. Since making the lease he has put upon this over $30,000 of and having a improvements, property written machinery contract with Brewer in regard to these improvement. Mr. Holding claims that it is the has violation of this contract that about the present the Mr. ment brought of mills, Brewer embarrass- having made a demand upon the National Bank of Raleigh, which holds mortgages upon the to foreclose them at once. are Brewer property, and Holding sureties claims for these debts, and Holding to hold a written contract that Brewer's name should remain upon one of the notes until 1898 and upon the other till a later day. The total liabilities of the company will probably aggregate $50,000. The assets but Mr. W. N. Jones, who some of the will reach represents $90,000, think creditors the said that he did not comwould be able, under yesterday pany the present financial condition of the country, to pay more than 50 cents on the dollar. It is certain that a receiver will be apwhen the case is pointed is probable heard, will and it that Mr. Holding be allowed to retain his lease under the same conditions that he now holds it, if he so desires. Prof. W. L. Poteat returned to Wake Torent westerday morning
