People ex rel. Wright v. Weigley

• Decision Date: 02 April 1895
• Citation: 155 Ill. 491,40 N.E. 300
• Parties: PEOPLE ex rel. WRIGHT v. WEIGLEY et al. SAME v. AMES, Sheriff.
• Court: Illinois Supreme Court

155 Ill. 491

40 N.E. 300

PEOPLE ex rel. WRIGHT

v.WEIGLEY et al.

SAME

v.AMES, Sheriff.¹

Supreme Court of Illinois.

April 2, 1895.

Appeal from appellate court, First district.

Proceedings by the people, on the relation of Robert W. Wright against Frank S. Weigley, Almon W. Bulkley, and Edward E. Gray, composing the firm of Weigley, Bulkley & Gray, and Albert T. Ames, sheriff of Boone county, for contempt of court. Defendants were convicted, but the judgments were reversed by the appellate court. 51 Ill. App. 51. The people appeal. Affirmed.Moses, Pam & Kennedy, for appellant.

Weigley, Bulkley & Gray, for appellees.

The Northwestern Shoe Company is a corporation organized under the laws of this state, its business being the manufacture and sale of boots and shoes in the city of Belvidere, Boone county. On the 2d day of September, 1892, certain of its creditors sued out of the Boone county circuit court writs of attachment, in aid of suits in assumpsit against the company, and the sheriff, Albert T. Ames, one of these appellees, levied the same upon the personal property of the company. Thereupon Jacob Graff, one of the stockholders, as sole complainant, filed a bill in the superior court of Cook county, making only the attaching creditors, the corporation, and sheriff defendants. The bill alleges the existence of the corporation, engaged in the business of manufacturing and selling boots, shoes, etc., with capital stock of $75,000, $9,300 of which was owned by the complainant; that up to September 2, 1892, it had carried on its business, and then had on hand a large quantity of boots, shoes, and other merchandise, in its factory at Belvidere, and also owned the machinery, building, and premises upon which its factory was located; that its plant and business were valuable, that it had acquired the good will of the customers to whom it had been furnishing goods, and to whom it could in the future furnish goods if permitted to do so, in the usual way of trade; that September 2, [155 Ill. 493]1892, the Merchants' National Bank of Chicago and other creditors of the corporation caused suits to be commenced against the company in the circuit court of Boone county, returnable at its September term, 1892, and on the same day (September 2d) caused writs of attachment to be levied upon the merchandise and personal property of the company by the sheriff of said Boone county, who now holds the same; that, by reason of said levies, the company has ceased doing business, and is thereby deprived of the benefits of its good will and the use of its property, to the injury of complainant as a stockholder; that a large number of other suits had been brought against the company in said circuit court to its September term, 1892, amounting to about $10,000; that, if properly managed and handled under the directions of the court or a receiver to be appointed by the court, the company assets will realize more than sufficient to pay its debts; that the company is indebted, in addition to the amount due the attaching creditors, in a large sum, which should be paid out of its assets; that the assets, if permitted to be held by the sheriff, will be held for a long time by him, without being used in any manner to the interest of the company, the machinery and plant of the corporation being out of use and rendered valueless; that, if said property so held by the sheriff were turned over to a receiver, the machinery and plant would be operated with benefits and advantages to the interest of all the stockholders, and would enable the corporation to pay its debts, and return to the stockholders sufficient assets for a division among themselves, but otherwise the property will be wasted, the machinery become useless, and the entire plant go to wreck, the said goods and merchandise become out of season and injured, so that there can not be realized thereon their fair value for the purpose of liquidating the company indebtedness; that there are a large number of orders on hand which should be filled, and for which the goods and merchandise are now in the hands of the sheriff, and for which payment could be made by the persons ordering the same, and a large sum of money, amounting to $10,000 or $15,000, realized to discharge and liquidate its debts; that the company has title to the land and buildings where its business is located, upon condition that its business is kept in motion and employés kept employed, and that it would be able to do so but for the seizure of its property by the sheriff, but, if he is permitted to retain possession thereof, such title will be forfeited, to the injury of complainant and other stockholders and creditors; that a receiver can operate and run the business to the advantage, of all concerned; that there is material on hand which could be used in the manufacture of boots, shoes, and slippers, and a large quantity of boots and shoes which could be sold and used for the payment of debts; that the stock of merchandise and property now on hand is about $35,000; that, unless the property and assets of the company should be used and administered under the directions of the court, there will not be sufficient to pay the creditors of the corporation, and the stockholders will be deprived of the benefits of any of its property; that, if the same should be administered under the directions of this court by a receiver, there would be realized more than sufficient to pay its obligations, and leave sufficient in the hands of the receiver for distribution to the stockholders therein. It is then alleged that the company ‘has not since September 2, 1892, performed the functions for which it was incorporated; that it ceased doing business on said date, and is not now doing any business whatever; that the Merchants' National Bank had at the time of suing out its attachment, and still has, a large quantity of boots and shoes of the company as security for its indebtedness, which was sufficient to discharge the same,’ etc; that the company is the holder of a large number of notes, accounts, and bills receivable, aggregating several thousand dollars, which should be collectedby a receiver, and applied under the directions of the court among the creditors and stockholders of the corporation. It concludes as follows: ‘Insomuch as complainant is remediless in the premises, save in a court of equity, he files this, his bill of complaint, against the Northwestern Shoe Company, Merchants' National Bank of Chicago, First National Bank of Elgin, Daniel Forbes & Co., Albert T. Ames, sheriff of Boone county, and asks that they and each of them may be required to appear and answer this bill of complaint, and each and all the allegations therein contained, answer under oath being waived; that a decree may be entered dissolving said Northwestern Shoe Company, and winding up its affairs; that the property and assets of said Northwestern Shoe Company may be properly marshaled, collected, and distributed, under the direction of this honorable court; that a receiver may be appointed by this court to immediately take possession of the property and assets of the Northwestern Shoe Company, and hold the same subject to the order of the court, and that he be vested with all the powers of receivers, in chancery, and collect, marshal, and dispose of the assets and property of said corporation, under the direction of this court; that the property now held by Albert T. Ames, sheriff of Boone county, and each and every portion thereof, be turned over to a receiver, to be by him handled and administered upon, under the orders and directions of this court; that the receiver may be permitted to proceed with the business of said corporation; that it may manufacture such goods and articles as may be necessary for the purpose of filling the orders on hand; that it may carry on the business of the Northwestern Shoe Company until each and all the debts and obligations of said company shall be discharged, and that all the property and assets remaining in the hands of the receiver then be marshaled and distributed by said receiver, under the directions of this honorable court; that the said attaching creditors, and each of them, be restrained and enjoined from prosecuting their said attachment suits, until the further order of this court; and that said Albert T. Ames, as sheriff, be restrained and enjoined from proceeding with the writs of attachment in any manner, until the further order of the court.’ Prayer for summons, to be directed to the sheriffs of Cook and Boone counties. Prayer for injunction. Signed by ‘Jacob Graff. Hofheimer & Zeisler, Solicitors.’

On the same day the bill was filed, the corporation, by its president, Barnett Graff, appeared in the superior court, and consented to the appointment of a receiver as prayed, and the court immediately entered the following order: ‘It is ordered that Robert W. Wright, of the city of Belvidere, Boone county, Illinois, be, and is hereby, appointed receiver of the defendant the Northwestern Shoe Company, with the usual powers of receivers in equity, upon his giving bond in the penal sum of $50,000, with security to be approved by the clerk of this court, conditioned upon the faithful performance of his trust, and that, upon the approval and filing of such bond, the said Robert Wright shall be vested with all his rights and powers as receiver. And it is further ordered that the defendant assign, transfer, and deliver over to said receiver, under the direction of James R. Mann, master in chancery of this court, all and singular the property, real and personal, of and belonging to the said corporation, and that said defendant, its officers and agents, forthwith surrender and deliver to said receiver all the assets, materials, tools, machinery, fixtures, effects, and property, of every nature and kind, of or belonging to said defendant, the Northwestern Shoe Company, and also all money, notes, drafts, ...