xt70zp3vt865_295 https://exploreuk.uky.edu/dips/xt70zp3vt865/data/mets.xml https://exploreuk.uky.edu/dips/xt70zp3vt865/data/63m46.dao.xml unknown 14 Cubic Feet 31 boxes archival material 63m46 English University of Kentucky Copyright has not been assigned to the University of Kentucky. Contact the Special Collections Research Center for information regarding rights and use of this collection. Harkins Family papers Mineral rights -- Kentucky -- Floyd County -- History. Law reports, digests, etc. -- Kentucky. Mining leases -- Kentucky -- Floyd County -- History. Practice of law -- Kentucky. Bankers -- Kentucky. Banks and banking -- Kentucky -- Prestonsburg. Coal trade -- Kentucky -- Floyd County -- History. Lawyers -- Kentucky. Richvain Coal Company v. Wells Elkhorn Coal Company text Richvain Coal Company v. Wells Elkhorn Coal Company 2016 https://exploreuk.uky.edu/dips/xt70zp3vt865/data/63m46/Box_27/Folder_5/8194.pdf 1934 1934 1934 section false xt70zp3vt865_295 xt70zp3vt865 3 a
3 '2
k 3
§ § SIDNEY B. HOSMER, RECIEVER,
k,‘ WELLS-ELKHORN COAL COMPANY
BEAVER-ELKHORN COAL
Eséiiffm.
November 15, 1954.
Mr. Joe Harkness, V
Prestonsburg, Kentucky.
' Dear Sir:
Agreeahle with your request and the request
of Mrs. Elizabeth Wells, I am pleased to hand you here-
with tentative list of Accounts Payable, as of October 24.
This list does not include the amounts due
the. Richve in Goa]. Gompany or Notes Payable.
We trust this is the information you want.
x Very truly yours,
19;!)me 1st 2;aa_:w:»;wsja_x,i;;,.
921%;an Wt 09.
PerWﬂ7é’7
Copy to Judge Edward C. orRear, .
Mrs. Elizabeth Wells.

‘ i r ..' 1 ‘ ref-1": ‘-
,’ )1. : 7’3; ‘5‘} , ;
‘ I. “'13“ "
Kﬁ $hw q
hih?xiut see i e; the shite; hid?xﬁ ' f
£3? Kim I
-e‘mh§thwWﬁw h meewmr.
shaéi‘n i,“ it}? gigﬁé‘étmiﬁ'ff -
was. he, ihﬁd, <
e.e. stsesv,r
i:¥..a&=’&, has. Lynn: Lug?” . ‘
#Iﬁﬁghgﬁ tees wussssﬁ. I . "
ﬁestiainsnt
assinhi in sanity he. lied.
sells sinners ﬁes? desosny, ‘
33% ‘5' er en 51:33? .
' s

J . I ‘4 :3 .1;! L é” "1 , “.- _ A; ‘

Fer assess to the hail e; sessegnt er stthesn heel ohmsaay
defenssat, Wells elhhern ﬁssl ﬁsaseny. sﬁsits thwt it is isoshted ;
we the nestisissnt, ilehveXn ﬂeet Semnsny, es ext ent is the
iii—vi}? €33“ sweetest; my". ie‘fsnﬁmw strives trial by ﬂaw? il!~1r’§‘<..i§.ﬂn

hefshseet tiles ﬁilﬁ assess he sutherity of s reesiaeiee duty
ssmstee by its heard or Eireesere; e enrtiiieﬁ eesy sf whisk is ‘
fuse herewith marked exhibit “a“. .

shsrefees, ﬁeﬁhuaest, tells slhhera ﬁes} ﬂeehmny, ereye test .
the await thee rush sation hafriﬁ eh to the seeri he? sees best to 1
easteet the istsrests ef the defendant, its erseitsee ens eteeko
headers, and seweifieeiiy densests ts the enueintwsnt of e f?

1‘6
rewiwe? beﬁts}. 1 ‘
dag: gsyeg. he
attorney iii/:39,“ he endemic,
wells sigh-cm east sea-sear.

ﬁf’ﬂsﬁﬂt, “$47??- 3533‘”: was that; he is éimairiaat 93" mm
alkhmn amt whammy: that the fawagsing; statements as?» true as '
he rarity traumas, *5?“ that the {swarms imam” has mm,
Wartitea 3%}; his ass is that my amateur»: m? a Mtg-alamgm €2ka
ﬁﬂmw‘m’! 33‘? tit-w saw at“ immature- at with Mahatma that ﬁéamsanw.

SiWWitw‘: was warm ta harms» at. 15:? %«iém ﬁrst. this and 7'
My at twat, was.

gait-39‘? it a lawman haunt; .;

55y. ,

with. L
g

'
same” to“. ‘
whom? NE :1}? Edit??? as? his {ﬁrst 1» imam; iatja’zériffB‘I/hﬁ? mist, ﬂushes?

enemies, thew:- iii-9e. miss: exisihiteﬁ to ifs-mi eiimme'rod by this, 3
tests sf ﬁxrsetore e exit of weenieins sestnwt taxis sikhora ﬂee; f
ﬁﬁmﬁﬁﬁ1. notes es}: s? sowoimine is signed and varietee by ,
ad}. Wheat, he attorney or ﬁiw‘ww‘il‘t one}. ﬁmmay, mmeﬁghmax'
wherein it is stiegee test sets ﬁiehvein ﬁes; seassny is the 9
owner see kaiser of tlﬁﬁ,t?3.ﬁa wrinoiwel assent, e? the seees' C i
of ants eosseey, see a rurteer steam sf eee,eee.eo for horreeeﬁ i
mosey, sit esyeele es eeeees, with interest tree tee dates of f
' seas ﬁvefai notes sud harrowings, end thee the geld notes {
were outs ereeeetes tee eeyeent was esysent therenf refuses 2
by ests heaven: on the ests as? e? eeaeser, itse, ;
see seereia said eseelsieaet greys, moons ether thingS, fer ,
tee eeeointssee or a sweetesr of all the ereesrty sea assets of i
this eesseng fer the grossetiea of was ereeitere of this eeeu ?
easy, one that a euheeeee is ease asses he issues see serves 2
ewes tote eesesnyg and g
estates, this compeny has benﬁ eoeiees that sate £111 of :
teesleiet, wishes one verified as siereeeie, is about ts he i
, raise in the steeriet wears at the ﬁnitee states for the western f
Sletriet of ﬁeneueky; i
$333, i'iie'fisi’ﬁir-S;as, its if? itstﬁﬁ.iiei§g 1
’ 1. that seize stakesa seal teaseﬂy ass its ﬂeets of i
tireotors hereby eeett eels inﬁeeteeeeee in full end ssiVe the 3
eﬁﬁshltﬁmnt Mamet one? the mist. sf the slat” {at $3133. Eiiehd-
tsin ﬂeet Qemssny in so esttwn ea tee, see further eeneeet that :
tho some as? be ereewnutmﬁ in enmity, see that a Remotes? ;
of this newest: eey be essnintwe in sale exoneseﬂ emit. ?
s. that ﬁhw efftoers or this eeeesny are 3.6. ashes, esg.. 3
es eeuneel, ere hereby authorised to oneness one file an answer 3
to said sill of ﬁrwokaint «emitting sets indebtedneﬁe one 3
waiving the rise! of wells sitters one! ﬁnneswy to lsetet mean f
the ereseeutien at its seizeeSisa e: tee setter than is eeetty.

it“:
:4 ..’ ‘. v ‘N
In The
DESTBICT SJUHT 6F Til UNITLL STiTLS
for the
EACTLRH hlﬁwhlUT UF HLNTBCHY
Richvein Coal Company, 3
Complainant .
against . In Equity No.
wells ilkhorn Coal Company, ,
D3fendant ,
BILL OF COMPLnINT :
To the Honorable Judge of the District Court of the United
States for the bostern District of Kentucky, sitting in Louity;
Riohvoin Coal Comoany brings Unis its bill of Complaint
against 30115 lehorn Coal Company, on its own behalf and on
behalf of all other creditors of the defendant who may join in
the prosecution of this suit, and alleges upon information and
belief as follows:

2 1. Complainant is a corporation created 0nd existing
under the laws of the State of Ohio and is a citizen and resident -
of that State and of no other State or territory. The dsfendont
is a corporation created and existing under the kins of tho State
of ﬂentucky and is a citizen and resident of Lentucky and of no
other State or territory. Its principal place of busSness is

nshland and it maintains an office at Lotill, both in the haetern
District of hentucky, and practically all its properties are located
. in that district.
The amount tn controversy in this suit exceeds the sum of
$3,000.00, exclusive of interest and costs. This suit is wholly of
a civil nature. it is brought for the purpose of enforcing the
claim of complainant, hinhvcin Coal Company, against the defendant;
of determining the claims of all creditors of the defendant; of
selling the assets of the defendant and distributing the not orccaeds
of said assets comma the creditors of the defencant and others
entitled thereto in accordance with tueir respective rights; of
urceerving the property, business and good—will of the defendant
pending this suit, through appointment of a Receiver, and for the
a other relief hereinafter prayed.
2. The defendant is Justly indebtcﬁ to tne complainant
. in the sum of $156,375.54, with six per cont interest per annum,
for money borrowed of it, in evidence of which the corendant
exucuted to the complainant its nine several promissory notes,
1 each payable on demand, on the dates, in the principal amounts, '
with the credits and leaving the balances named as follows:
Dates Principal amounts Credits Balances
~ April 1, 19:54 $150,000.00
Dec. 20, 1926 $25,000.00
Jan. 24, 1927 25,000.00
Apr. 15, 1927 10,000.00 $90,000.00
Apr. 25, 1930 7,500.00
Aug. 1, 1930 10,000.00
Oct. 9, 1950 7,500.00
Nov. 4, 1930 5,000.00
Dec. 531, 1930 6,294.08 131,294.08
Dec. 31, 1931 7,877.64 139,171.72
Jan. 1, 1935 8,300.30
Dec. 31, 1953 8,801.82 156,373.34
By said BBVcral notes defendant promised and agreed to
-2- _ ..,.-“ ,.

V r I ‘ ‘8
pay the plaintiff upon demand the said principal amounts
with 6% interest thereon nor annum. Defendant is also justly I
indebted to the complainant in the further sum of $30,602.00
for monies which the defendant borrowed and received of the '
complainant upon open account of promised to repay to
. complainant upon demand with 6% interest per ennum. On
October 18th, 1934, and frequently before that date, the
» complainant duly presented said notes and demanded payment
of the said belances cue thereon with interest and of said ‘
Open account with interest, but the defendant has fmled and .
refused to pay the some or any part thereof. Copies of said 1
notes, showing all credits thereon, are filed narewitn marked
Exhibits A to I, inclusive, and complainant offers to file .
~ the originals thereof upon request.
3. The acsets of tue defendant consist principally
of coal mining properties in Floyd and Knott Counties, Kentucky,
where it is engaged in the production and sale of bituminous
coal. A copy of the Balance Sheet of the defendant as or
August 31, 1954, is attached hereto as Schedule No. l. The
capital assets of the defendant consist of a leasehold end
real estate. The lecseholﬂ was granted to it by the Beaver '
Creek Consolidated Coal Company on January 1, 1919. The '
estimateﬁ useful life of the lease is thirty-five years.
Under present depressed and Generalized market for such
proyerties and real estate generally, said leasehold has only
a nominal fair market value. If it were segregated from the
.- other assets or the defendant, probably it would have no sale
value.

r c
By the provisions of said lease as amended, defendant 18
required to pay its lesaoro a minimum monthly rental of $11,740.00
whether any cool he mined or not, and should it fail to pay said
rental, it is provided that the lessors, by giving sixty Qays'
notice or its intention to do so, may terminate the leusa unless
the default shall have been durod in the meantime.
The said real eatato of the defendant consists of lanﬂ
acquired in fee about fifteen years ago at a cost of @83,85b.95
At the preocnt time it has a fair market value, probably, of not I .
. more than $10,000.00 - certainly not more than $15,000.00.
The defondant has securities of the par talus of $4,400.00,
being stock in Appalachian Goals, luc., upon its subscription for
which it has paid, however, only the sum of $1,103.98. Appalochian
Goals, Inc. is on organization formed under the National Industrial
RcGOVary Act, and the chief value of said securities lies in the
representation of defendant by said Appalachian Cools, Inc. under
acid Act. Said securities haVo little or no market value, and the
entire transaction represents a liability viowed.upart from the
continuance of defendant's coal mining buainess.
Tho defendant has mining equipment which cost it #793,448.82,
but which has a book vane of only $239,427.72 and a fair market value
at the present time of probably not more than 41b,000.00 - certainly
not more than $25,000.00.
As of August L1, 193%, the so-oulled current assets of the
defendant were 450,852.50. Included in that amount at the present
tinm in cash of not more than 050.00. Accounts receivable :
are $1190.57, consisting principally of amounts due from employees »
and others for miscellaneous puronases at the commioaariea of the
defendant, and which would be difficult, if not impossible, of '
-4- I . . ,

. f C
collection upon the cessation of defendant's buoiness or throwing
its employees out of work. It has coal mined but nnoonsigned of
the value of not more than $2,000.00. It has notes receivable
of $9,958.50 oar value, but which have an actual market value of
not more than $5,000.00. These notes are secured by 600 shares
or common stock of The Banoo Kentucky Company of no market or
other value, and by 83 shares of common ntock of The Kentucky
RiVGr Coal Corporation or a fair market value of betWeen $2,000.
and $6,000. It has insurnnce on its preperties prepaid but un—
earned of approximately 01,900.00. It has prepaid royalties of
approximntely 0833.97. It has merchandise stocks in its com~
misseries at hstill, Garrett, Lackey and Jones Fork, Kentucky, of
respectively $11,213.45; $6,160.11; $6,323.48 and $1,294.06. 5816
L commissary stocks have a fair market value at a forced sale of not .
. more than 012,000.00. It has mining supplies of a book value or
approximately $1,000.00 and a fair market value of not more than
$500.

The defendant owes notes for borrowed money, payable on
demand, of $173,012.88 and owes accounts immediately payhblo to
more than fifty persons, totalling $100,986.72. It owes a payroll
to its enployeea of more than 07,000.00. It owes injured employees
for insurance more than 410,000.00. It owes for taxes accrued, 4
but not due, more than 01,000. .

The foregoing comprise all tne assets and liabilities or
the defendant, excepting its capital stock liabilities. It is

I hopelessly insolvent, and has no cash, credit or other means to
meet its fortnightly puyrobl caning due October 87, 1954.

4. During the first eight months or 1904, the defendant
has suffered a net 1058 each month, and which aggregates for the
period the sum of $45,462.49. A copy of its Financial Statement ‘

_ ~5-

i' v
for these eight months is attached horoto do Schedule No. 2.
' During the five years preceding the year 1934, the defendant 5
Buffered the following net losses - odd dollars and cents omitted. ‘
19222: $910,000.00
1930 $0,000.00 '
~ 1931 45,000.00
19 :52 60 , 000 .00
19:53 58,000.00 l
Under the operation of tho ﬁotionol Endostricl Recovery :
Act, the 1055 to the defendant in the production of cool per ton .
has progressively increased. Under the hot, the labor employed 1
1n the mines of the defendant and in the mines of Lostern hentucky
do a whole has become oomplotoly Unionizod. ﬁrior to that time ‘
' the mining rote per ton of tho defendant woo 25¢; it is now 54%¢.
About 7b% of too ontiro cost of production is for labor. However,
the wage scale of the old {normally union) cool fields — toot is I
i to say, Illinois, Indiana and Ohio - has not increased under the
N. H. A. There has been no change in the freight differentials
existing in favor of those fields as against Lastern Kentucky mines.
The northern States furnished approximately 85A or the defendant's
market, but as a result of its wage increases the defendant during
the lost year has lost approximately 60% of its total market by
reason of being unable to compete in the Northern morkcts; northern
buyers have been using their local cools. The dofondont has also
suffered a loss of sales in its local markets, so that on one whole (
it has been reduced to a one to three day work week. The not result
has been on increased allocation of overhead cost to each ton mined,
a disproportionate increase in the cost of mining per ton, and a
greater total loss.
5. For a number of years the defendant has not had the
funds to keep its mining equipment in reasonable repair. Such
equipment has rapidly become worn out or obsolete and reduced to
-5-

. Ar g I
the point where it can not be used without the expenditures of
considerable sums of money for repairs and roplaoemcntu. Its
houses for mining employees are in such state of disrepair as to
be barely habitable.
6. The defendant has not sufficient money or credit or
other available means wherewith either to out its mining machinery
and equipment in necececry repair or to meet the current expenses
of mining and shipping coal. Because of the inVOlved condition
or its affairs, the defendant no longer has any credit at the
banks or with lendere of money.
The chief and almost total value of the defendant's
properties consist in their employment and preservation as a
, going concern. If its assets should be scquestrctod and sold
piecemeal under various and a mutiplioity of executions end
attachments, they would bring in the aggregate not more than
$10,000.00 at the utmost. If preserved, held intact end sold
as an operating concern, by e ﬁeceiver of this court, they will
reasonably net the creditors of the defendant, and other persons 1
entitled, in the aggregate at lcaet $b0,000.00 with e rcasonable I
probability of their bringing $65,000.00. By the issuance of '
receiver's certificates, comprising a first lien on its assets, ‘
sufficient funds can be procured wherewith to preserve and reason- ,
ably operate the properties of the defendant for a reasonably brief V
period of time until the same can be sold as a going concern. unless
a Receiver is immediately appointed by the court, its business will
be shut down, the numerous creditors of the defendant will immediatelﬁ
institute a multiplicity of actions against it and cause a multiplicity;
of executions and attachments to be levied upon its properties and
'tne same will be sacrificed piecemeal, to the irreparable injury or '
. ..7-

4 t ,
the comclaincnt and of all the creditors of the defendant. :
Also, its propcrcicc thereby would be kargcly concumcd in costs.

The defendant has an organization of skilled, efficient j
and competent employees, consisting of superintcnﬂcntc, managers, ;
foreman, engineers and others which has heen.built no over a long
period of time and at a large coat. An indefinite suspension of §
its businecs would result in their being Gicbanded and scattered 1
in other and permanent cmploymonta and bucinccccc, to the irreparable I
injury of its value as a going concern. The dcfenﬂcnt has a large j
intangible accet in sales contracts, goodawill and customers, all 1
of which would be dissipated in the event of a ccssabionfor its
business, thereby resulting in the sacrifice of a valuable asset ;
of the defendcnt as a going concern.

Apart from thc preccrvction of tho large value or '

1 intangible assets of the defendant as a going concern, its physical ‘
properties can not be economically preseerd unless operated to a
reasonable cxtcnt by a ﬁcccivcr of this court until they can be ‘
sold. If the mines of thc dcfcncant should be closed down, Shay
would rapidly deteriorate because of the accumulation therein of
water and gas cad the rotting of mine propc, and there would be
imminent danger of fire. For thc most part also the prescnt
workings of the defendant‘s mines constitute the only practicable
mecca of recovering the unmined reserves in the developed acreage.

V The diccontinuancc of operations therein would entail the abandon-
ment or such working», causing them to deteriorate and disintcgrate
to such an extent that in a short time it would be commercially
unprofitable to reopen them, with the result tact the unmined
rcccrvcs in the developed aoreagc would be wholly out off and
destroyed.
, -8~

4 'v

The mining equipment of the defendant is of e quickly v
perishable nature and would be rendered practically Worthhass in
a short time by disuse because of the action of the elements' a
petty thefts and other destructive agencies. The most economical
way to preserve such equipment from material injury and destruction
is by a reasonable use and operation thereof.

The defendant has miner‘s houses of e book value of
approximately $100,000.00, which would be lsrgcly vacated by a
cessetion of mining operations and would depreciate very quickly _
in value from the actions of human maraudors, fire hazards and
the elements. ,

The merchandise stocks in the four commisscries of the
defendant have an inventory value of approximately $22,000. They
represent practically the only stocks of goods available to the I
employees and their families for the purchase of food and clothing V
and two general necessities and conveniences of life. Unless the
mines are operated, the employees paid and the stores kept open
under a receivership of defendant‘s properties, not only would
greet hardships be entailed on such employees but the said stocks
of goods would be attached or sacrificed under execution sales for
less than one-fourth of their fair value. If the mines are operated '
end the stores kept Open, the stocks therein can be sold out in the
usual course at their fair value for a profit, or without ices on '
account thereof to defendant's creditors.

The defendant has at the present time approximately 484
men on its payroll, and they and their families totaling from
1500 to 2000 person now rely for their livelihood upon the
operations of defendant's mines. In some four communities, the
maintenance of schools, churches, and, in fact, the entire life

-9- . ‘

a w
or the pacple depends upon the continued operations of the
defendant. Though defendant's employees are now self~sustaining,
if its business is closed down even temporarily the majority of
them in every likelihood will be thrown upon public charity.
The interests of the complainant and of all the other
> creditors of the defendant will be best served if the going
concern value of the defendant's business and property is main-
tained and Rep intact, and its physical assets and business can be
sold as an entirety or in such manner as this court may direct;
and the complainant believes and says that this can be accomplished
and said assets and business preserved for equitable distribution
among those entitled thereto only by the intervention or a court
of equity and the granting of equitable relief for the preserve, I
tion of all of the assets and business of the defendant as a
going oonern, and by enjoining all creditors from interfering
with its business or properties or attempting to obtain any
priorities, thus permitting the sale of the property of the .
defendant in such manner as to secure the greatest value therefor.
7. Complainant has no adequate remedy at law and no '
‘ previous application has been made for the relief herein sought.
Wherefore, the complainant prays for equitable relief,
I as follows:
‘ First: That the rights of the canplainant, Richvsin '
d’ Coal Company and of all other creditors of, and all other persons
‘ in, the defendant and its properties, be ascertained, decreed and
determined; that this court fully administer the fund in which the "
complainants are interested, constituting all the property and
assets of the defendant, in accordance with the rights, equities, y
liens and priorities existing thereon, and enforce and decree the ;
-10-

4 ..
rights, equities, liens and priorities of too creditors of the j
defendant as the name finally may be ceoertained and decreed by
this court.
‘ Second: That this court, for the purpose of granting
the relief prayed for and to protect the rights and interact of
the complainants and of all other creditors or tne defendant and
all other percons interested tnerein, take over unto itself the
jurisdiction and control of all the assets and property of the
dcfendant, of every kind and description whatsoever, and tact
pending this suit this court grant such specific relief as from .
time to time may to expedient and appropriate to maintain such
jurisdiction and control.
Third: Thnt, for the purpose of preserving the unity
and integrity of the property, assets and businessof the defendant
and of preventing disruption thereof by separate executions,
attachments and levies during the pendency of this auit, a Receiver
be appointed by this cooot of the defendant and of all its property
and assets, real, personal and mixed and of whatsoever kind and
description and wheresoever situated, and all the bolls, earnings,

v _ rents. issues, profits, revenues and income thereof, with the usual
powers of ReceiVere in such cases, and with full power and authority
to take possession of said property and assete and to manage and
operate the some and to continue the business of the defendant and
to collect and receive tue tolls, earnings, issues, rents, profits,
revenues and income thereof and every part thereof and 9 apply the
same as this court from time to time may order or decree; also with
power to issue and sell recechr’s certificates in such sums as the
court may direct, constituting a first lien on all the assets of the
defendant for the purpose of preserving the properties of the

‘9 L.
defendant through c reasonable operation thereof; and that such I
further powers and authority as to this court may seem meet and
prooor be granted to any Receiver appointed. ‘
Fourth: That the properties and scouts and business of E
the defendant be ordered to be sold, in whole or in port, in such ?
manner and with such exceptions and upon such terms and conditions
as this court shall deem just and equitable, and that any such order 3
make proper end suitable provisions for the yrotsotion of all equities,
rights, priorities, claims and liens of the creditors of the defendant
and provide for the sole of the properties, assets and business of I
the defendant, subject to or free ano olesr from any and all liens
or encumbrances, and taut the proceeds of any such sale be distributed. ,
by and under the direction of this court among the creditors of the
defonéant and such others, if any, as this court may adjudicnte.
Fifth: That, pending this suit, an injunction, issue out
of and under the seal of this court against the defcnannt, its
agents, directors, officers, aerVente and employees, its creditors,
I stockholders and all other persons claiming or acting by or through
or under them or any of them, to restrain each and oVery one of them
from in any way filing liens or levying executions upon, attaching,
selling, disposing of, transferring or in any manner interfering with
any of the property or the defendant, or from taking possessbn of,
or from in any manner disturbing or interfering with the possession
or management of any port of said property of which Receivers are
appointed.
Sixth: That the complainants have such other, further and
different relief in the premises as to this court may seem proper
and as may be necessary fully to protect and to enforce the rights
and equities of the complainants and of oil creditors of the defendant
and of all other persons interested in its properties.
_ p -18- V ,

.., .

Seventh: That a writ of subpoena be granted to the
complainants to be directod to tho dofendont, thereby requiring
the defendant to be and appear on a certain day before this court
and than and there full, true, direct and perfect answer make to
all and singular the premises, but not under oath, answer under
oath being hereby expressly waived, and furthor to parform and
abide by such further orders, directions and decrees as to this
court shall seem meet.

RICHVLlN COLLICOMBLNY
WW
Cowplcinunt
State of Kentucky,
COUﬂfY of Franklin, 33.

E. C. O'rear, being first auly sworn, on oath says:

That he is attorney for the complainant, hichvcin
Coal Comseny; that he has read the foregoing Bill of Complaint
and KnOWS the contents thereof, anﬂ that the same is true,
except as to mattcrs therein alleged on infcwmation and belief,
and as to those matters, he belieVes it to be true.

Subscribed and sworn to before me this 25rd day of
October,1934 , by 1. C. O'recr.

Wlty,
My commission expires Kentucky.
Deoeuber 11, 1937.

-13-

a
In The
DISTRICT COURT 01" THE U23I’f..‘1LD ﬁTJ‘L‘I’LS
for the
EASTMAN LIC‘TI-IICT {J}? IzilZNTUCKY
Hichvcin Coal Company, 2.
Complainant .
Against : In Lquity No.
Welle~hlkhorn Cool company, I
Defcnﬁant .
Uhﬂhii .i‘JHPOIK‘EINCI LILCiLJIV'th
0n reading anﬁ considering the verified Bill of
Complaint and the verified nnswer filed in this cause, and on
motion of the solicitor for the complainant, one due delibera~
tion being had, it is on this day of 1934,
Ordered, adjudged and Decreed, as Ebllowe:
1. ‘ of
is hereby appointed Receiver, and invested with the powers of
receiver in equity of, all and singular the property and assets,
both real and personal, tangible nnﬂ intangible, of every
character and description and wheresoeVer situate, belonging to
the defendant, wells lehorn Coal Company { hereinafter celhad
the "Receivership Estate", whether held by the defendant in its
own name, or by agents or others, together with all the tolls,
earnings, income, rents, issues anﬂ profits thereof accrued,
accruing and to accrue.

2. Said hsceiver is authorized and directed forthwith
to take possession of all and singular the property and assets
constituting the heceivcrship Lotcte whercsocvsr situate or found; .
to preserve, manage, maintain and operate the some; to use, manage
and conduct the business of the defendant; to preserve the hecciver— I
V ship Astate; to keep the heco1Vership lstatc or any part thereof

insured as he may deem advisable; to maintain the officers of the
defendant to the extent that he shall deem tuc some necessary or
advisable; to employ, discharge and fix the compensation and
prescribe the duties and authorities (including the authority to
sign checks drawn against funds of the hecechrship astute) of all
such officers. attorneys, managers, agents and employees as he .

, shall deem neceSsary or expedient in and about the conduct of the ;
business of the defendant; to collect and receive the tolls, earn-

. ings, income, rents, issues and profits of the ﬁeccchrship Lstate,
and to collect all outstanding accounts, things in action and
claims due or to become due or owing to the defendant; to purchase
for cash or on credit such supplies, materials and other things
as may be requisite to curry on the said business; to sell in the 1'
course or business all or any of the defendant's me chandise,
inventories or other personal property; to make such payments and
disbursements as may be needful or proper, in his Judgment, in
connection with any of the foragoing; and until the further order
of this court, to exercise full discretion in the matter of handling
the present business of the defendant and any new business which
may be taken and accepted by him and to handle the same in accordance
with the custom of the business and the trade in which the defendant
is engaged; and to hold and retain the net revenue of the heceiver-
ship Estate in such manner and to the end that the same shall be
applied under this Order and under such orders as the court may
- hereafter make. , ~2-7 . I?

3. Said Rccc1Vor shall be allowed months .
from the date of this Order within which to elect to adopt or ,
continue in force or to refuse to adopt or continue in force any *
loose, cpyrcting agreement or other cxccutory contr ct which may '
have been mode or entered into by the defendant or which may be '
included in tho hccciv.rship Lstatc. Such election may be made I
from time to time with the approval of the court, and no conduct
or usuer of any rights by said heccivcr or paymcnt mode by said
Receiver as rent or otherwise or any other acts or ommisciono of ‘
said ReceiVQr within the ccid period of months unaccompanied
by furtuer order of the court expressly approving his election shall
be deemed to conclude acid Receiver in respect of such election or .
> be decmoé to constitute an election to adopt or continue in force ;
. or to rcfusc to adopt or continue in force, any such.1ease, agree-
ment or othwr cxccutory contract.
4. Said Receiver is authorized and empowered to institute
anc prosecute within this judicial district or elsewhere in any
court or-beforc any officer, department, commission or other body I
and in his own name as heccivor or in the name of the defendant,
as he may be adriscd by counsoi, all such actions, proceecings or
. suits as in his judgment may be neooscary for the recovery or proper
protection of the Receinrchip Estate or any part thereof and.tho
discharge of his trust; and to copoar in and/or conduct and to -
continue the prosecution or defense of any and all actions, .. I
proceedings or suits now pending or which may hereafter be brought I
in any court or beforc any officer, department, commission or other V
body or to which the defendant is or shall become a party which,
in the Judgment of said Receiver, affect or may affect the Receiver-
ship Estate. Said hcceivcr is furtner authorized and empowered
...3-

whether before or after any action, proceeding or suit in respect
thereof shall have begun, to compromise and settle and out of 3
funds coming into his hands as heceivcr pay claims and demands on i
all accounts accruing against him as Receiver after the date of s ‘
this Order and arising out of his possession, maintenance or ;
operation of the hcoeivsrshin Estate which, in the judgment of
said Receiver, are meritorious and capable of adjustment on terms
advantageous to and for the proper protection of the nocechrship
Estate. ‘
5. Sold ReceiVer shall open books of account and shall '
Keep or cause to be kept therein due and proper accounts of the ;
earnings, expenses, receipts and disbursements of the heceiVersnip :
' Estate, and shell preserve proper vouchers for all payments made i
by him on account thereof and shall deposit the moneys coming into _