Fact-Finding Page3

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 (o) At the time of the institution of these actions the defendant, Beatrice S. Chamblee, held the record title to Tract 18 referred to in Findings of Fact and Conclusions of Law II(a). Since said time said defendant died testate in Guilford County , North Carolina . Security National Bank of Greensboro , North Carolina , is the named, duly qualified, and acting executor of her estate. Said estate of Beatrice S. Chamblee is solvent and the defendant, Security National Bank, Executor of the Estate of Beatrice S. Chamblee, has been made a party to these actions and has been duly and properly served with process. Without prejudice to the legatee and the heirs at law of Beatrice S. Chamblee, said executor consents to this decree adjudging that it, as executor, has no interest in said tract of real property.

(p) At the time of the institution of these actions the defendant, Beatrice S. Chamblee, held the record title to Tract 18 as referred to in Findings of Fact and Conclusions of Law II(a), as nominee of and for the defendant, Francis Duval Smith. In her will said defendant purported to will said tract of real property to the defendant, S. B. Kinser, Jr., alias S. B. Kinzer, Jr. Said S. B. Kinser, Jr., alias S. B. Kinzer, Jr., has been made a party to these actions and has been duly and properly served with process and is before the Court. He has filed no answer herein. Subsequent to the death of the defendant, Beatrice S. Chamblee, an answer, which she had verified just prior to her death, was filed or deposited with the Clerk of this Court. In this verified answer, the defendant, Beatrice S. Chamblee, acknowledged that she was not the owner of said tract of land, and had no rights or claims thereto, but alleged that she had purchased same for the defendant, Nella Smith, alias Gwendolyn Novella Smith, now Nella Smith Lazar. From this admission and from testimony of the defendants, Francis Duval Smith and Nella Smith, alias Gwendolyn Novella Smith, now Nella Smith Lazar, and from other evidence, the Court finds that said Tract 18 was not the property of Beatrice S. Chamblee at the time of her death, and that the defendant, S. B. Kinser, Jr., alias S. B. Kinzer, Jr., does not own and has and holds no right, title, or interest, legal or equitable, in and to said Tract 18, and that, as found in Findings of Fact and Conclusions of Law II(a), the defendant Francis Duval Smith was and is the real, actual, and sole owner of said tract of real property.

[Property Owned by Taxpayer's Nominees]

III. The Court finds the real properties conveyed by the record title holder to the receiver without prejudice to the rights of other parties are the property of the defendant, Francis Duval Smith, with title now vested in the receiver:

(a) The record title to Tract 19 referred to in Findings of Fact and Conclusions of Law II(a) was held in the name of the defendant, J. B. Webster, Jr., as nominee of and for the defendant, Francis Duval Smith. Pursuant to the mandate of a former order of the Court heretofore entered on August 28, 1958, the defendants, J. B. Webster, Jr., and his wife Helen S. Webster, have conveyed all of their right, title, and interest in this tract, by deed without warranties, to the receiver. The defendants, J. B. Webster, Jr., and wife, Helen S. Webster, have no further rights or interest in the issues or subject matter of these actions.

(b) The record title to Tract 21 referred to in Findings of Fact and Conclusions of Law II(a) was held in the name of J. Bryan Webster, Sr., as nominee of and for the defendant, Francis Duval Smith. Pursuant to the mandate of a former order of the Court heretofore entered on August 28, 1958, the defendants, J. Bryan Webster, Sr., and his wife, Eula E. Webster, have conveyed all of their right, title, and interest in this tract, by deed without warranties, to the receiver. The defendants, J. Bryan Webster, Sr., and wife, Eula E. Webster, have no further right or interest in the issues or subject matter of these actions.

(c) The record title to Tract 20 referred to in Findings of Fact and Conclusions of Law II(a) was held in the name of the defendant, Elva Noggle, now Elva Noggle Jennings (unmarried). The defendant, Elva Noggle Jennings, has conveyed all of her right, title, and interest in this tract, by deed without warranties, to the receiver. The defendant, Elva Noggle Jennings, has no further rights or interest in the issues or subject matter of these actions.

[Ownership of Property Determined]

IV. The Court finds and concludes as a matter of law the following relative to the title and ownership, or lack thereof, of the defendant, Francis Duval Smith, in special property and property rights, and the rights and remedies of the parties and the receiver in connection therewith:

(a) Real property known as 1429 Moore Street , Richmond , Virginia , was the property of the defendant, Francis Duval Smith, the same having been conveyed to him under the name of "Frances Duval Smith". Heretofore said property has been condemned and taken by The Richmond Redevelopment and Housing Authority. The value of said property was fixed by the Chancery Court of the City of Richmond, Virginia, in said condemnation proceeding at THREE THOUSAND DOLLARS ($3,000.00), and this sum has been paid into the office of A. T. August, Clerk of Chancery Court of the City of Richmond, State of Virginia, to be by said Clerk paid to the party or parties lawfully entitled thereto. A. T. August, as Clerk of Chancery Court of the City of Richmond , State of Virginia , The Richmond Redevelopment and Housing Authority, and Frederick A. Fay, its executive director, have been made parties to these actions and have been duly and properly served with process. Said defendants have filed no answer. The defendants, Francis Duval Smith, Frances S. Lacefield, and Joe Morris Lacefield, who were parties to the aforesaid condemnation proceeding, all agree that the fund of THREE THOUSAND DOLLARS ($3,000.00) representing the value of said property taken by condemnation, is the sole property and asset of the defendant, Francis Duval Smith, and said defendants have further agreed to execute such bill of sale, assignment, or other transfer instrument as shall be necessary to transfer to the receiver all of their right, title, and interest, legal and equitable, in and to said fund of THREE THOUSAND DOLLARS ($3,000.00).

(b) Real property known as 1601 W. Cary Street , Richmond , Virginia , was the property of the defendant, Francis Duval Smith, the same having been conveyed to him under the name of "Francis Smith". Heretofore said property was conveyed for a full and valuable consideration to Alfred D. Price, Jr., and wife, Marie Price. A part of the consideration of this sale was a note of said purchasers in the original sum of TWO THOUSAND DOLLARS ($2,000.00), payable to the defendant, Frances S. Lacefield, and secured by a deed of trust upon said property to the defendant, Thomas N. Parker, as trustee. Said Alfred D. Price, Jr., Marie Price, and Thomas N. Parker, Trustee, have been made parties to these actions and have been duly and properly served with process. They have filed no answer. The defendants, Alfred D. Price, Jr., and Marie Price, are bona fide purchasers of said property, for value, without notice of the liens of the cross-claimant, and are owners of the same in fee simple, subject to encumbrances of record, and specifically subject to the aforesaid purchase money deed of trust. At the time of service of process upon the defendants, Alfred D. Price, Jr., and wife, Marie Price, the balance due by them upon the aforesaid Two Thousand Dollar note was NINE HUNDRED DOLLARS ($900.00). No part of said indebtedness has been paid and said balance of NINE HUNDRED DOLLARS ($900.00), with interest as provided by the terms of said note, is still due and owing. The defendants, Francis Duval Smith, Frances Smith Lacefield, and Joe Morris Lacefield, agree that said balance due upon said note, together with interest, secured by said deed of trust, is the sole property and asset of the defendant, Francis Duval Smith, and said defendants further agree to execute such assignments, endorsements, or other transfer instruments as shall be necessary to transfer to the receiver all of their right, title, and interest, legal and equitable, in and to said note and deed of trust.

(c) On December 2, 1948, Frank P. Meier executed and delivered to Basil W. Carney and wife, Evelyn S. Carney, a note in the principal sum of TWO THOUSAND DOLLARS ($2,000.00) and secured the same by a mortgage deed on real property known as 3614 S. Clark Street, Tampa, Florida, which said mortgage deed is duly recorded in Book of Mortgages 805, at page 510, Hillsborough County Public Registry. On or about October 7, 1949 , Basil W. Carney and wife executed an assignment of said mortgage deed and the notes it secured to Fred T. Saussy, Jr., as Trustee for Frances E. Smith, now the defendant, Frances Smith Lacefield. Frank P. Meier is now deceased, and the defendant, Estelle Meier, claims to be the sole owner of said real estate, subject to recorded encumbrances and, in particular, subject to the lien of the mortgage deed aforesaid. Estelle Meier and Fred T. Saussy. Jr., Trustee, have been duly and properly served with process, and they have filed no answer. At the time of service of process upon the defendant, Estelle Meier, the balance due upon said note secured by said mortgage deed was TWO THOUSAND DOLLARS ($2,000.00). In a deposition of the defendant, Estelle, Meier, she admitted the indebtedness due on said note. The defendants, Francis Duval Smith, Frances Smith Lacefield, and Joe Morris Lacefield, agree that the balance due upon said note, together with interest, and secured by said mortgage deed, is the sole property and asset of the defendant, Francis Duval Smith, and said defendants further agree to execute such assignment, endorsement, or other transfer instrument as shall be necessary to convey to the receiver all of their right, title, and interest, legal and equitable, in and to said note and said mortgage deed.

(d) On March 29, 1943, C. H. Bowen and wife conveyed to J. C. Coats 361/2 acres of land in Cumberland County , North Carolina , by deed duly recorded in the office of the Register of Deeds of Cumberland County, North Carolina, in Book 456 at page 222. This property is a part of Tract No. 16 referred to in Findings of Fact and Conclusions of Law II(a). Simultaneously, J. C. Coats gave a note to C. H. Bowen for TWENTY-ONE HUNDRED DOLLARS ($2,100.00), as a part of the purchase price, and secured said note by a deed of trust to Malcolm McQueen as trustee for C. H. Bowen, the same being recorded in the office of the Register of Deeds of Cumberland County, North Carolina, in Book 460 at page 488. On February 29, 1943, C. H. Bowen and wife conveyed to J. C. Coats an adjoining four-acre tract, the deed for same being recorded in the office of the Register of Deeds of Cumberland County, North Carolina, in Book 461, page 276. On July 28, 1944 , J. C. Coats and wife conveyed both tracts, the same constituting all of the property referred to as Tract 16 in Findings of Fact and Conclusions of Law II(a) to the defendant, Sourtheastern Bonding Company, subject to the aforesaid note and deed of trust upon the 361/2 acre tract. All of Tract 16 is the property of the defendant, Francis Duval Smith, and said deed conveyed only the record title to the defendant, Southeastern Bonding Company as nominee of and for the defendant, Francis Duval Smith. On or about the 2nd day of April, 1949, the trustee in said deed of trust, Malcolm McQueen, resigned and J. O. Talley, Jr., was designated substitute trustee by an instrument dated April 2, 1949 , and recorded in the office of the Register of Deeds of Cumberland County, North Carolina, in Book 528 at page 174. Subsequently, and while said deed of trust was being foreclosed because of the default in the payment of the said note, Malcolm McQueen, acting as attorney and agent for the defendant, Francis Duval Smith, caused the full balance due by the terms of the note secured by said deed of trust to be paid to J. O. Talley, Jr., as trustee and as attorney, agent, and representative of C. H. Bowen, the holder of said note. But said deed of trust has never been cancelled of record, and the same, together with the note secured by it, cannot be found by the receiver. Payment in full of said indebtedness was received by the trustee, J. O. Talley, Jr., at a time when the note and deed of trust were in his possession for foreclosure and collection. J. O. Talley, Jr., trustee, has been made a party to these actions and has been duly and properly served with process. Said trustee should immediately cancel the aforesaid deed of trust of record.

(e) The furniture, fixtures, and other personal property assets of the Sawdust Trail Bar, 113 E. Zack Street , Tampa , Florida , were the property of the defendant, Francis Duval Smith. The record title to the same was held in the name of his relative, Richard Reynolds, as his nominee. During the ownership of said property by the defendant, Francis Duval Smith, he caused the same to be conveyed and sold to one Rob ert Levine and, as a part of the consideration of said sale, received a note of the purchaser dated May 16, 1952, in the amount of FOUR THOUSAND ONE HUNDRED SEVENTY-SIX AND 88/100 DOLLARS ($4,176.88) which he caused to be made payable to Richard Reynolds and thereafter to be assigned to the defendant, Frances Smith Lacefield, as his nominee. This note was secured by a chattel mortgage upon all of the assets of Sawdust Trail Bar. During the pendency of these actions, and prior to notice, said note was paid in full to Fred P. Saussy, Jr., acting as trustee and as attorney and agent for the defendant, Frances Smith Lacefield. Thereafter, Fred P. Saussy, Jr., caused to be paid into the office of the District Director of Internal Revenue, Jacksonville, Florida, the full amount which had been paid to him upon such note, which sum was received and credited upon the tax claim of the cross-claimant against the defendant, Francis Duval Smith, and is included in calculating the recovery herein granted against said defendant. Fred P. Saussy, Jr., has been made a party to these actions and has been duly and property served with process. He has paid to the cross-claimant all funds received on thise note and no longer has any interest, rights or liability in the matters at issue in these actions, and these actions should be dismissed as to Fred P. Saussy, Jr., without court costs.

V. The Court finds and concludes as a matter of law that the following property and property rights do not belong to the defendant, Francis Duval Smith:

(a) The record title to Tract 23 referred to in the cross-claim and amended cross-claim of United States of America was held in the name Frances Smith Lacefield as the nominee of and for the defendant, Francis Duval Smith. The title and ownership of the defendants, Francis Duval Smith and Frances Smith Lacefield, in said real property has heretofore been defeated and divested by virtue of a legal and proper ad valorem property tax foreclosure sale of said real property by the Borough of Monmouth Beach, New Jersey.

(b) The defendant, Francis Duval Smith, is not the owner of Tracts 1 and 2 as described in the cross-claim and the amended cross-claim of United States of America and as hereinafter more specifically described in this decree. Said property is free of the tax claims of the plaintiff, and the cross-claimant as decreed herein and is free of any lien by reason thereof.

(c) The defendants, Francis Duval Smith, and Southeastern Bonding Company, are not the owner or owners of Tract 17 as described in the cross-claim and the amended cross-claim of United States of America and hereinafter more specifically described in this decree. The defendant, Sourtheastern Bonding Company, held the record title to said real property as nominee of and for Malcolm McQueen. Malcolm McQueen is now dead, having died intestate, leaving a widow, Mary M. McQueen, and one child Virginia McQueen McFadyen, as his sole heir.

(d) On May 1, 1948, John F. Sanderford conveyed to the defendant, Southeastern Bonding Company, Lots Nos. 61 through 66, inclusive, of Carver's Creek Township property in Cumberland County, North Carolina, by deed recorded in the office of the Register of Deeds of Cumberland County, North Carolina, in Book 520 at page 414, the same being Tract 15 referred to in Findings of Fact and Conclusions of Law II(a). While the record title to said property was in Southeastern Bonding Company, and before lis pendens which was filed by the plaintiff against said tract of property was properly indexed as to and in the name of Southeastern Bonding Company, and before the tax lien or liens of the cross-claimant United States of America attached to said Tract 15, the defendant, Southeastern Bonding Company, conveyed approximately one-half of said Tract 15 to A. B. Carr by deed dated November 15, 1950, and recorded in the Office of the Register of Deeds of Cumberland County, North Carolina, in Book 565, page 186. A. B. Carr is a purchaser for value without notice, who paid full consideration for said property, and A. B. Carr is the owner of the property described in the aforesaid deed to him free and clear of all right, title, claim, and interest of the defendants, Francis Duval Smith and Southeastern Bonding Company, and is likewise the owner of said property free and clear of all liens decreed herein, including those of the plaintiff and the cross-claimant. Said A. B. Carr and his wife, Esther Carr, were made parties to these actions and were duly and properly served with process. By reason of their ownership of the aforesaid part of Tract 15, free of the claims of any other party to these actions as aforesaid, they are no longer interested in the issues and subject matter of this litigation and same should be dismissed as to them without court cost.

[Priority of Liens]

VI. The Court finds and concludes as a matter of law the following as to certain general liens and specific liens against properties of the defendant, Francis Duval Smith, and as to the relative rights and priorities incident thereto:

(a) The tax liens of the plaintiff were filed in the office of the Clerk of the Superior Court of Guilford County , Forsyth County , Cumberland County , and New Hanover County , North Carolina , on April 5, 1949 , and are recorded in judgment dockets of said counties. At that time, plaintiff's tax lien became a general lien upon all property of the defendant, Francis Duval Smith, in said counties, including that herein decreed to be his property. The plaintiff filed notices of lis pendens on August 24, 1950, in the office of the Clerk of the Superior Court of the county of situs of each tract of property in North Carolina herein decreed to be the property of the defendant, Francis Duval Smith, and commenced these actions in the Superior Court of Guilford County, North Carolina, to enforce and to foreclose its liens upon those specific properties on or before August 24, 1950. On August 24, 1950 , the tax liens of plaintiff became and now are a specific and perfected lien upon all property in North Carolina described in plaintiff's complaints and herein decreed to be property of the defendant, Francis Duval Smith. The tax liens of the cross-claimant, United States of America , were filed in the office of the Register of Deeds of Guilford County, Forsyth County , Cumberland County , and New Hanover County on November 23, 1953 , December 8, 1953 , and February 2, 1954 . At the time of the filing of said liens as aforesaid, said tax liens became a specific and perfected lien upon all property of the defendant, Francis Duval Smith, in North Carolina , including the specific property herein decreed to be property of the defendant, Francis Duval Smith. These specific and perfected liens of the plaintiff and the cross-claimant are both superior to all general liens against property of the defendant, Francis Duval Smith, including the liens referred to in Findings of Fact and Conclusions of Law VI(b) and VI(c).

(b) There are three (3) judgments in favor of the State of North Carolina for court costs and a fine adjudged in criminal cases against the defendant, Francis Duval Smith, all docketed in the office of the Clerk of Superior Court of Guilford County, North Carolina, on February 10, 1953, as follows:

Judgment Docket 61 Page 38 (File Number C-21294), Court Costs $42.90

Judgment Docket 61 Page 39 (File Number C-21295), Court Costs $187.55

Judgment Docket 61 Page 38 (File Number C-20616), Fine $25,000.00

By North Carolina law these judgments, though in favor of the State of North Carolina, are for the benefit of the defendant, Joseph P. Shore, as Clerk of the Superior Court of Guilford County, North Carolina, and the defendants, Howard E. Carr, Ed. T. Coble, John R. Peacock, Zack L. Whitaker, and Mrs. E. M. Burke, as members of the Guilford County, North Carolina, Board of Education. The aforesaid parties are the real parties in interest as to the liens of said judgments, and together with the State of North Carolina , have all been made parties to these actions by reason of said judgments and have been duly and properly served with process. Said criminal judgments for court costs and fine are liens upon all real property in Guilford County , North Carolina , of the defendant, Francis Duval Smith as of February 10, 1953 , the date same was docketed. As to real property in Guilford County , North Carolina , the tax claim herein recovered by the State of North Carolina has priority superior to all other claims and the aforesaid judgments for court costs and fine has second priority. The tax claim judgments herein recovered by the cross-claimant, the United States of America , has third priority. As to personal property the tax claim judgment of North Carolina has first priority and the tax claim judgments of the cross-claimant, United States of America , has second priority.

(c) At the February, 1954, Civil Term of the Superior Court of Guilford County, North Carolina, a judgment for $20,000.00 was rendered in favor of V. G. Rainey, Administrator of the estate of George Henry Rainey, deceased, against the defendant, Francis Duval Smith, together with Court costs amounting to $72.05, which judgment was duly docketed at said term in the office of the Clerk of Superior Court of Guilford County, North Carolina, in Judgment Docket 61 at page 61. Thereafter, on March 15, 1956 , said judgment was duly assigned by the plaintiff, one-half to V. G. Rainey, individually, and one-half to Frances Betty Rainey. Said judgment remains wholly unsatisfied. The plaintiff therein and the assignee of said judgment have been made parties to these actions and have been duly and properly served with process. This judgment became at the time of its filing, in February, 1954, and still is a lien upon all real estate of the defendant Francis Duval Smith in Guilford County , North Carolina . As to all real estate of the defendant, Francis Duval Smith, in Guilford County, North Carolina, this judgment is inferior to the liens of the plaintiff, State of North Carolina, the cross-claimant, United States of America, and the judgments for court costs and fine set forth in subparagraph (b) above.

(d) On May 20, 1946 , Rob ert Savage borrowed from Shenandoah Life Insurance Company, Inc., the sum of $8,000.00, for which he gave to it his note in said sum payable $50.62 on June 1, 1946 , and a like amount on the first day of each month thereafter to and including May 1, 1966 . To secure said note Rob ert Savage executed and delivered to the defendants, A. G. Decker, R. S. Leftwich, and N. D. McNairy, as trustees for Shenandoah Life Insurance Company, Inc., a deed of trust upon certain real property referred to as Tract 12 in Findings of Fact and Conclusions of Law II(a). Said deed of trust was duly recorded in the office of the Register of Deeds of Guilford County, North Carolina, on June 1, 1946 , in Book 1118, page 326. Thereafter, on August 7, 1947 , Rob ert Savage conveyed Tract 12 to the defendant, Southeastern Bonding Company, by deed recorded August 8, 1947 , in the office of the Register of Deeds of Guilford County, North Carolina, in Book 1186 at page 40. Tract 12 is the property of the defendant, Francis Duval Smith, and said deed conveyed only the record title to the defendant, Southeastern Bonding Company, as nominee of and for the defendant, Francis Duval Smith. The aforesaid note, secured by the aforesaid deed of trust upon Tract 12, has not been paid in full, but the receiver appointed herein has been paying the monthly payments provided by the terms of said note from rental income received from the renting of Tract 12, including the payment due September 1, 1959 . The balance due upon said note is a valid and subsisting claim and is a specific lien upon Tract 12, superior to all liens herein decreed, including those in favor of the plaintiff, James S. Currie, Commissioner of Revenue of the State of North Carolina, and the cross-claimant, United States of America, and is also superior to the lien upon said property of the expenses of the receivership and the court costs of these actions.

(e) On December 2, 1946, the defendants, J. B. Webster, Jr., and wife, Helen S. Webster, executed and delivered to E. C. Sutton and wife, Nancy Louvenia Sutton, six (6) certain promissory notes totalling ONE HUNDRED THOUSAND DOLLARS ($100,000.00), the sixth note being in the sum of SEVENTEEN THOUSAND DOLLARS ($17,000.00) payable January 10, 1950, and bearing interest from date at the rate of six per cent (6%) per annum. To secure said notes said defendants executed and delivered to Huger S. King, trustee, a deed of trust upon real property referred to in Findings of Fact and Conclusions of Law II(a) as Tract 19, which deed of trust was duly recorded in the office of the Register of Deeds of Guilford County, North Carolina, on December 9, 1946, in Book 1150 at page 241. Said deed of trust is a bona fide valid and subsisting specific lien upon Tract 19 and is superior to all liens decreed herein, including those in favor of the plaintiff and the cross-claimant, and including the liens for expenses of the receivership and the court costs in these actions, and also the liens of the judgment creditors referred to in Findings of Fact and Conclusions of Law VI(b) and VI(c). On July 22, 1953 , all of said notes had been paid and satisfied in full except the aforesaid sixth note in the principal sum of $17,000.00, which, with interest to said date, totalled $18,808.83. At said time these actions were pending in the Superior Court of Guilford County, North Carolina, and Perry C. Henson and E. E. Boone, Jr., were State Court Receivers duly appointed, qualified, and acting as to Tract 19. By order of Court entered by the Superior Court of Guilford County, the State Court Receivers borrowed from one Reuben B. Arthur the sum of $18,808.83 for which loan they executed to him, as receivers, a demand note in said sum, and pursuant to said order, they secured said note by an assignment of the aforesaid sixth note in the sum of $17,000.00 due January 10, 1950. Since said date, the said Reuben B. Arthur has received certain payments upon interest which have been duly credited upon said note, but no part of the principal of said note has been paid and the interest has not been paid in full. The total indebtedness due Reuben B. Arthur by reason of the aforesaid receivers' note is entitled to the same priorities as the aforesaid sixth note and the deed of trust upon Tract 19 securing it, held as collateral security for said receivers' note. IT IS CONSIDERED, ORDERED, ADJUDGED, AND DECREED, as follows:

I. (a) That the plaintiff, James S. Currie, Commissioner of Revenue of the State of North Carolina, have and recover of the defendant, Francis Duval Smith, the sum of $811,554.18, for income taxes, penalties and interest thereon to the 15th day of August, 1959, due for the years 1943 to 1947, inclusive, with interest on the sum of $289,309.44 from the 15th day of August, 1959, until paid, at the rate of six per cent per annum.

(b) That the judgment of the plaintiff, James S. Currie, Commissioner of Revenue of the State of North Carolina, against the defendant, Francis Duval Smith, as aforesaid, be and the same is hereby adjudged to be a specific and perfected lien against all properties and rights of properties, real and personal, of said defendant located in the State of North Carolina and herein adjudicated to be property belonging to Francis Duval Smith, or in which he has any interest.

(c) That the cross-claimant, United States of America, have and recover of the defendant, Francis Duval Smith, the sum of $496,614.06 for income tax, penalties, and assessed interest thereon for the years 1944 to 1949, inclusive, and 1952 and 1953, with interest to the 15th day of August, 1959, in the amount of $175,936.85, totalling $672,550.91, with interest on the sum of $496,614.06 from the 15th day of August, 1959, until paid, at the rate of six per cent per annum.

(d) That the cross-claimant, United States of America, have and recover of the defendants, Francis Duval Smith and Mrs. F. D. Smith, alias Dorothy Lee Smith, now Dorothy Lee Smith Newbraugh, jointly and severally, the sum of $22,293.06, for income taxes, penalties and assessed interest thereon, for the years 1950 and 1951, with interest to the 15th day of August, 1959, in the amount of $8,027.03, totalling $30,320.09, with interest on the sum of $22,293.06 from the 15th day of August, 1959, until paid, at the rate of six per cent per annum.

(e) That the cross-claimant, United States of America, have and recover of the defendant, Francis Duval Smith, the sum of $6,117.09 for wagering taxes, penalties, and assessed interest for the period covering November 1, 1951, through June 30, 1953, with interest to the 15th day of August, 1959, on the amount of $2,098.78 and for a non-payment penalty of $305.86, totalling $8,521.73, with interest on the sum of $6,117.09 from the 15th day of August, 1959, until paid, at the rate of six per cent per annum.

(f) That the judgments of the cross-claimant. United States of America , against the defendants. Francis Duval Smith and Mrs. F. D. Smith, alias Dorothy Lee Smith, now Dorothy Lee Smith Newbraugh, as aforesaid, be and the same are hereby adjudged to be specific and perfected liens against all properties and rights of properties of said Francis Duval Smith wherever the same may be situate and herein adjudged to be property belonging to Francis Duval Smith, or in which he has any interest.

[Properties Described]

II. (a) That Francis Duval Smith is the real, actual, and sole owner of the real property described in the cross-claim and amended cross-claim of the United States of America as Tracts Nos. 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 less that tract conveyed as hereinafter set forth, 16, 18, 19, 20, 21, and 22, said property being more particularly described as follows, to-wit:

Tract No. 3

Location of Property-- 1939 Wrightsville Avenue , Wilmington , N. C.

[Description omitted.--CCH]

Tract No. 4

Location of Property-- 2060 Queen Street , Winston-Salem , N. C. ( Forsyth County )

[Description omitted.--CCH]

Tract No. 5

Location of Property--4310, 43101/2, 4312 Wrightsville Avenue, New Hanover County, Wilmington, North Carolina.

[Description omitted.--CCH]

Tract No. 6

Location of Property--70 North Channel Drive, New Hanover County, Wilmington, North Carolina.

[Description omitted.--CCH]

Tract No. 7

Location of Property--608 North Channel Drive, New Hanover County, Wilmington, North Carolina.

[Description omitted.--CCH]

Tract No. 8

Location of Property-- 917 Marstella Street (also known as 917 Marsteller Street ), New Hanover County , Wilmington , North Carolina .

[Description omitted.--CCH]

Tract No. 9

Location of Property--Vacant lot corner Friendly Road and W. Avondale Street , Greensboro , North Carolina .

[Description omitted.--CCH]

Tract No. 10

Location of Property--Vacant Lot No. 165A, Lindley Park , Greensboro , North Carolina .

[Description omitted.--CCH]

Tract No. 11

Location of Property--Old Rural Hall Road , Winston-Salem , North Carolina ( Forsyth County ).

[Description omitted.--CCH]

Tract No. 12

Location of Property-- 204 Mayflower Drive , Greensboro , North Carolina .

[Description omitted.--CCH]

Tract No. 13

Location of Property--231/2 acres of land and two-story frame house opposite Greensboro-High Point Airport , Greensboro , North Carolina .

[Description omitted.--CCH]

Tract No. 14

Location of Property-- 2602 Woodleigh Street , Winston-Salem , North Carolina ( Forsyth County ).

[Description omitted.--CCH]

Tract No. 15

Location of Property--Lots 61 to 66, inclusive, Carver's Creek Township , Cumberland County , Fayetteville , North Carolina .

[Description omitted.--CCH]

Tract No. 16

Location of Property--401/2 acres W. T. Bowen property, Cumberland County , Fayetteville , North Carolina .

[Description omitted.--CCH]

Tract No. 18

Location of Property-- Friendly Road , Greensboro , North Carolina .

[Description omitted.--CCH]

Tract No. 19

Location of Property--Sutton Florist Property, High Point Road , Greensboro , North Carolina .

[Description omitted.--CCH]

Tract No. 20

Location of Property-- High Point Road , Greensboro , North Carolina .

[Description omitted.--CCH]

Tract No. 21

Location of Property-- 805 Madison Avenue , Winston-Salem , North Carolina ( Forsyth County ).

[Description omitted.--CCH]

Tract No. 22

Location of Property-- 915 East 21st Street , Winston-Salem , North Carolina ( Forsyth County ).

[Description omitted.--CCH]

(b) That the defendants, Florence Smith Profenius, H. C. Profenius, Frances Smith Lacefield, Joe Morris Lacefield, Nella Smith, alias Gwendolyn Novella Smith, now Nella Smith Lazar, Mrs. F. D. Smith, alias Dorothy Lee Smith, now Dorothy Lee Smith Newbraugh, Southeastern Bonding Company, Mrs. S. G. Scott, Security National Bank of Greensboro, North Carolina, Executor of the Estate of Beatrice S. Chamblee, deceased, and S. B. Kinser, Jr., alias S. B. Kinzer, Jr., do not own and have no right title, and interest in and to any of the above described tracts of real property.

(c) That the defendant, Francis Duval Smith, shall immediately following the entry of this judgment execute and deliver to Hubert E. Seymour, Jr., receiver, as grantee, a deed, or deeds, without warranties, conveying to the receiver all of his right, title, and interest, legal and equitable, in and to the foregoing described tracts of real property.

(d) That the defendant, Francis Duval Smith, is the real, actual, and sole owner of the tangible and intangible personal property as described in the cross-claim and amended cross-claim of the United States of America, as follows, to-wit:

(1) That certain cashier's check No. N7580 payable to Frances Smith, dated June 11, 1952 , for the sum of $5516.50, and issued by the Commercial National Bank of Charlotte , North Carolina .

(2) All shares of capital stock issued or subscribed for in the defendant, Southeastern Bonding Company.

(3) All shares of capital stock issued or subscribed for in Sutton's Florist, Inc.

(4) All those certain automobiles seized by the Sheriff of Guilford County, now in the possession of Hubert E. Seymour, Jr., Receiver, and referred to in the cross-claim filed by the United States .

(5) All personal property stored in and used in the operation of Sutton's Florist, Inc., greenhouses.

(6) The debt and note dated December 2, 1958, in the original principal sum of $2,000.00, secured by a mortgage deed executed by Frank P. Meier to Basil W. Carney, which is recorded in the Public Registry of Hillsborough County, Florida, in Mortgage Book 805, at page 510, and thereafter on October 7, 1949, was assigned by Basil W. Carney and wife to Fred T. Saussy, Jr., trustee for Frances E. Smith, now Frances Smith Lacefield, which mortgage deed conveyed real property known as 3614 S. Clark Street, Tampa, Florida.

(7) The debt and note in the original principal sum of $2,000.00, secured by a deed of trust executed by A. D. Price, Jr., to Thomas N. Parket, trustee for Frances Smith Lacefield, conveying real property located at 1601 W. Cary Street , Richmond , Virginia .

(8) The fund in the sum of $3,000.00 in the hands of A. T. August, Clerk of Chancery Court, Richmond , Virginia , or his successor in office, and being the proceeds of a condemnation of property located at 1429 Moore Street , Richmond , Virginia .

(9) All cash received by Hubert E. Seymour, Jr., receiver, from all properties and assets, real and personal, including rents thereon, coming into his possession by reason of his appointment as receiver in said litigation.

(e) That the defendants, Florence Smith Profenius, H. C. Profenius, Frances Smith Lacefield, Joe Morris Lacefield, Nella Smith, alias Gwendolyn Novella Smith, now Nella Smith Lazar, Mrs. F. D. Smith, alias Dorothy Lee Smith, now Dorothy Lee Smith Newbraugh, Southeastern Bonding Company, Mrs. S. G. Scott, Security National Bank of Greensboro, North Carolina, Executor of the Estate of Beatrice S. Chamblee, deceased, and S. B. Kinser, Jr., alias S. B. Kinzer, Jr., do not own and have no right, title, and interest in and to any of the items of tangible and intangible personal property referred to in Item II(d) of this judgment.

(f) That the defendant, Francis Duval Smith, shall immediately following the entry of this judgment execute and deliver to Hubert E. Seymour, Jr., receiver, as grantee, bill or bills of sale, assignments, endorsements and other transfer instruments as shall be necessary to transfer to said receiver all of his right, title, and interest, legal and equitable, in and to the items of tangible and intangible personal property referred to in Item II(d) of this judgment.

(g) That the defendant, Florence Smith Profenius, owns no interest in the real property heretofore described as Tracts 9, 10, and 11 in Item II(a) of this judgment, but does hold the record title to the same as nominee of and for the defendant, Francis Duval Smith, the actual owner, and the said defendants, Florence Smith Profenius and husband, H. C. Profenius, shall immediately following the entry of this judgment execute and deliver to Hubert E. Seymour, Jr., receiver, as grantee, a deed, or deeds, without warranties, conveying to said receiver all of their right, title, and interest, legal and equitable, in and to said tracts of real property.

(h) That the defendants, Florence Smith Profenius and her husband, H. C. Profenius, own no interest in the personal property heretofore described in Item II(d) of this judgment, and if they hold any interest or title whatsoever, in fact or by inference, such claim of title is only as nominee of and for the defendant, Francis Duval Smith, the actual owner, and said defendants, Florence Smith Profenius and husband, H. C. Profenius, shall immediately following the entry of this judgment execute and deliver to Hubert E. Seymour, Jr., receiver, as grantee, bill or bills of sale, assignments, endorsements and other transfer instruments as shall be necessary to transfer to said receiver all of their right, title, and interest, legal and equitable, in and to said tangible and intangible personal property.

(i) That the defendant, Frances Smith Lacefield, owns no interest in real property heretofore described as Tracts 5, 6, 7, and 8 in Item II(a) of this judgment, but does hold the record title to the same as nominee of and for the defendant, Francis Duval Smith, the actual owner, and the said Frances Smith Lacefield and husband, Joe Morris Lacefield, shall immediately following the entry of this judgment execute and deliver to Hubert E. Seymour, Jr., receiver, as grantee, a deed, or deeds, without warranties, conveying to said receiver all of their right, title, and interest, legal and equitable, in and to said tracts of real property.

(j) That the defendants, Frances Smith Lacefield and her husband, Joe Morris Lacefield, own no interest in the personal property heretofore described in Item II(d) of this judgment, and if they hold any interest or title whatsoever in fact or by inference, such claim of title is only as nominee of and for the defendant, Francis Duval Smith, the actual owner, and said defendants, Frances Smith Lacefield and husband, Joe Morris Lacefield, shall immediately following the entry of this judgment execute and deliver to Hubert E. Seymour, Jr., receiver, as grantee, bill or bills of sale, assignments, endorsements and other transfer instruments as shall be necessary to transfer to said receiver all of their right, title, and interest, legal and equitable, in and to said tangible and intangible personal property.

(k) That the defendant, Nella Smith, alias Gwendolyn Novella Smith, now Nella Smith Lazar, and her husband, Leo Lazar, and the defendant, Mrs. F. D. Smith, alias Dorothy Lee Smith, now Dorothy Lee Smith Newbraugh, own no interest in real property hereinbefore described as Tracts 3 and 4 in Items II(a) of this judgment, and such record title as either or both may hold to either or both of said tracts of real property is held by said parties as nominee of and for the defendant, Francis Duval Smith, the actual owner of the same, and the said defendant, Nella Smith, alias Gwendolyn Novella Smith, now Nella Smith Lazar, and her husband, Leo Lazar, shall immediately following the entry of this judgment execute and deliver to Hubert E. Seymour, Jr., receiver, as grantee, deed or deeds without warranties conveying to said receiver all of their right, title and interest, legal and equitable, in and to said tracts of real property. And the conveyance of said tracts of property by the defendant, Francis Duval Smith, to the receiver as provided by the terms of this judgment shall convey the same to the receiver in fee simple, free and clear of any title or interest on the part of the above parties mentioned in this item.

(l) That the defendant, Nella Smith, alias Gwendolyn Novella Smith, now Nella Smith Lazar, and her husband, Leo Lazar, own no interest in the personal property hereinbefore described in Item II(d) of this judgment, and if they hold any interest or title whatsoever, in fact or by inference, such claim of title is only as nominee of and for the defendant, Francis Duval Smith, the actual owner, and said defendants, Nella Smith Lazar and husband, Leo Lazar, shall immediately following the entry of this judgment execute and deliver to Hubert E. Seymour, Jr., receiver, as grantee, bill or bills of sale, assignments, endorsements and other transfer instruments as shall be necessary to transfer to said receiver all of their right, title, and interest, legal and equitable, in and to said tangible and intangible personal property.

(m) That Mrs. S. G. Scott is not a person in being, but is a fictitious name or alias used by the defendant, Francis Duval Smith, that Mrs. S. G. Scott owns no interest in real property heretofore described as Tract 22 in Item II(a) of this judgment, and the legal title to same is held in said fictitious name as an alias of Francis Duval Smith, the actual owner of same, as hereinbefore decreed, and his conveyance of the same to the receiver in the manner hereinbefore decreed shall vest the absolute fee simple title to said property in the receiver.

(n) That the defendant, Southeastern Bonding Company, the stock of which is owned solely by the defendant, Francis Duval Smith, as hereinbefore decreed in Item II(d) of this judgment, does not own any interest in real property hereinbefore described as Tracts 12, 13, 14, 15, and 16 in Item II(a) of this judgment, but does hold record title to the same as nominee of and for the defendant, Francis Duval Smith, the actual owner, and the said Francis Duval Smith is hereby declared to be the actual sole owner of said property and his conveyance of the same to the receiver in the manner hereinbefore decreed shall vest absolute fee simple title to said property in the receiver.

(o) That the defendant, Security National Bank of Greensboro, North Carolina, Executor of the Estate of Beatrice S. Chamblee, deceased, has no interest in nor claim on real estate described as Tract 18 in Item II(a) of this judgment; and that said defendant, Security National Bank, Executor of the Estate of Beatrice S. Chamblee, deceased, therefore has no rights or interest in these actions and the same are hereby dismissed as to it without court costs.

(p) That the defendant, S. B. Kinser, Jr., alias S. B. Kinzer, Jr., owns no interest in aforesaid real property described as Tract 18 in Item II(a) of this judgment as devisee of the defendant, Beatrice S. Chamblee, now deceased. The said Beatrice S. Chamblee, at the time of her death, owned no interest in said property, legal or equitable, but held the record title to the same as nominee of and for the defendant, Francis Duval Smith, the actual owner, and the attempted and purported devise of said tract of real property by the defendant, Beatrice S. Chamblee to the defendant, S. B. Kinser, Jr., alias S. B. Kinzer, Jr., is null, void, and conveys and vests no right, title and interest in said tract of real property to and in the defendant, S. B. Kinser, Jr., alias S. B. Kinzer, Jr. And the conveyance of said tract of property by the defendant, Francis Duval Smith, to the receiver, as hereinbefore decreed, conveys the fee simple title to said property to said receiver.

III. (a) That the defendants, J. B. Webster, Jr., and wife, Helen S. Webster, do not own any interest in the real property hereinbefore described as Tract 19 in Item II(a) of this judgment, but at the time of the institution of these actions held the record title to the same as nominee of and for the defendant, Francis Duval Smith, the actual owner, that pursuant to a former order of this Court entered August 28, 1958, said defendants have executed and delivered to Hubert E. Seymour, Jr., receiver, as grantee, a deed without warranties, conveying to said receiver all of their right, title, and interest, legal and equitable, in and to said tract of real property and that said defendants, J. B. Webster, Jr., and wife, Helen S. Webster, now have no interest in these actions and the same are hereby dismissed as to them without court costs.

(b) That the defendants, J. Bryan Webster, Sr., and wife, Eula E. Webster, do not own any interest in the real property hereinbefore described as Tract 21 in Item II(a) of this judgment, but at the time of the institution of these actions held the record title to same as nominee of and for the benefit of the defendant, Francis Duval Smith, the actual owner, and pursuant to a former order of this Court entered August 28, 1958, said defendants have executed and delivered to Hubert E. Seymour, Jr., receiver, as grantee, a deed without warranties, conveying to said receiver all of their right, title, and interest, legal and equitable, in and to said tract of real property and that said defendants, J. Bryan Webster, Sr., and wife, Eula E. Webster, now have no interest in these actions and the same are hereby dismissed as to them without court costs.

(c) That the defendant, Elva Noggle Jennings, now unmarried, owns no interest in real property hereinbefore described as Tract 20 in Item II(a) of this judgment, but at the time of the institution of these actions held the record title to same as nominee of and for the defendant, Francis Duval Smith, the actual owner. Said defendant, Elva Noggle Jennings, has executed and delivered to Hubert E. Seymour, Jr., receiver, as grantee, a deed without warranty conveying to said receiver all of her right, title, and interest, legal and equitable, in and to said tract of real property and that said defendant, Elva Noggle Jennings, now has no interest in these actions and the same are hereby dismissed as to her without court costs.

IV. (a) That the cross-claimant, United States of America, have and recover of the defendants, A. T. August, Clerk of Chancery Court of the City of Richmond, State of Virginia, or his successor in office, The Richmond Redevelopment and Housing Authority, and Frederick A. Fay, Executive Director of The Richmond Redevelopment and Housing Authority, or his successor in office, the fund in the sum of $3,000.00 held by the defendant, A. T. August, as the Clerk of Chancery Court of the City of Richmond, State of Virginia, or his successor in office, and being the proceeds of a condemnation of real property located at 1429 Moore Street, Richmond, Virginia, and therein adjudicated to be the value of said property; this judgment shall be discharged and satisfied as to the defendants named in this paragraph by the payment of or delivery of said fund of $3,000.00 to Hubert E. Seymour, Jr., receiver, and upon payment and delivery of said $3,000.00 said defendants named in this paragraph be and they are thereby discharged and released from this judgment without court costs.

(b) That the cross-claimant, United States of America, have and recover of the defendants, Alfred D. Price, Jr., and wife. Marie Price, and Thomas N. Parker, trustee, all rights and remedies of the defendants, Francis Duval Smith, Frances Smith Lacefield and her husband, Joe Morris Lacefield, in and to a note in the original principal sum of $2,000.00 payable to Frances Smith Lacefield and secured by a deed of trust from the defendants, Alfred D. Price, Jr., and wife, Marie Price, to the defendant, Thomas N. Parker, as trustee for Frances Smith Lacefield, conveying real property located at 1601 West Cary Street, Richmond, Virginia, as security for said note; this judgment shall be discharged and satisfied as to the defendants named in this paragraph upon payment to Hubert E. Seymour, Jr., receiver, of the full balance due on said note at the time said defendants were made parties to these actions, with interest, and upon such payment in full with interest said defendants are thereupon discharged and released from this judgment without the payment of court costs. The full balance of said note is now past due and payable with interest. Upon failure of the defendants, Alfred D. Price, Jr., and wife, Marie Price, to forthwith and immediately pay and discharge the full balance due upon said note as herein decreed, said receiver shall forthwith and immediately demand foreclosure of said deed of trust, and the defendant, Thomas N. Parker, Trustee, shall foreclose the same and the cost of such foreclosure, together with reasonable expenses of the trustee, the receiver and his attorneys' fees incident thereto, are taxed as foreclosure costs and expenses against the property described in said deed of trust, and the proceeds of its foreclosure sale.

(c) That the cross-claimant, United States of America, have and recover of the defendants, Fred T. Saussy, Jr., trustee, Frances Smith Lacefield, and Francis Duval Smith, the full and complete ownership, together with all sums due thereon, in and to that certain note in the original principal sum of $2,000.00 executed on December 2, 1948, by Frank P. Meier to Basil W. Carney and wife, and that said mortgage deed securing said note executed simultaneously therewith by said Frank P. Meier to said Basil W. Carney and wife and conveying real property located at 3605 South Clark Street, Tampa, Florida, as security for said note and recorded in Book of Mortgages 805 at page 510, in the office of the Public Registry of Hillsborough County, Florida, together with that certain assignment instrument dated October 7, 1949, conveying said note and mortgage deed to the defendant Fred T. Saussy, Jr., trustee for the defendant, Frances Smith Lacefield and that the cross-claimant, United States of America, have and recover of the defendant, Estelle Meier (who now owns and is in possession of the property covered by the terms of the aforesaid mortgage deed and acquired the same subject to said mortgage deed), and of the defendant, Fred T. Saussy, Jr., (holds title as trustee under the aforesaid assignment of said note and mortgage deed) the full balance due on said note, together with the interest as therein provided. This judgment as to the defendants, Estelle Meier and Fred T. Saussy, Jr., to be discharged and satisfied upon the immediate payment by the defendant, Estelle Meier, to Hubert E. Seymour, Jr., receiver, of the said full balance of the principal and interest due on said note at the time said defendant, Estelle Meier, was made a party to these actions, and upon such payment in full with interest, said defendants, Estelle Meier and Fred T. Saussy, Jr., trustee, are thereupon discharged and released from this judgment without payment of court costs. Upon failure of the defendant, Estelle Meier, to forthwith and immediately pay and discharge the full principal balance due upon said note with interest as provided by the terms of said note, the receiver shall forthwith and immediately demand a foreclosure of said mortgage deed by the assignee thereof, Fred T. Saussy, Jr., trustee, and the defendant, Fred T. Saussy, Jr., trustee, shall thereupon immediately foreclose the same and the cost of such foreclosure, together with reasonable expenses of the trustee, the receiver and his attorneys' fees incident thereto, are taxed as a foreclosure cost and expense against the property described in said mortgage deed and the proceeds of its foreclosure sale.

(d) That that certain note in the sum of $2,100.00, dated March 29, 1949, executed by J. C. Coats and wife to C. H. Bowen, and secured by a deed of trust of even date from J. C. Coats and wife to Malcolm McQueen, as trustee for C. H. Bowen, recorded in the office of the Cumberland County, North Carolina, Public Registry in Book 469 at page 488, conveying a part of Tract No. 16 referred to in Findings of Fact and Conclusions of Law II(a) is hereby adjudged and decreed paid, discharged, and satisfied in full, and is further adjudged and decreed to be not a valid, subsisting lien upon the property therein described, and the same should be satisfied and cancelled of record. And J. O. Talley, Jr., trustee, be and he is hereby ordered and directed to forthwith and immediately cancel said deed of trust of record in the office of the Register of Deeds of Cumberland County, North Carolina, and upon such cancellation of record by said trustee these actions shall thereupon terminate as to the defendants, C. H. Bowen and J. O. Talley, Jr., trustee, without court costs.

(e) That the note and chattel mortgage executed by Rob ert Levin to Richard Reynolds in the amount of $4,176.86 dated May 16, 1952 and assigned to the defendant, Frances Smith Lacefield, as the nominee of and for the defendant, Francis Duval Smith, is hereby adjudged and decreed to have been paid, satisfied, and discharged in full, and the funds in payment thereof, since the institution of these actions, have been paid to the cross-claimant, United States of America; that these actions be and the same are dismissed as to all the defendants named in Findings of Fact and Conclusions of Law IV(e) insofar as the same relate to said note and chattel mortgage and any sums collected thereon, without court costs.

V. (a) That Hubert E. Seymour, Jr., receiver, be and he is hereby ordered and directed to abandon any and all further efforts to recover real property described in the cross-claim and amended cross-claim of the United States of America as Tract 23, the same being property located in Nonmouth Beach, New Jersey, and the cross-claim and amended cross-claim of the United States of America, as to said tract of real property, be and the same is hereby dismissed without prejudice to the rights of the United States of America.

(b) That the defendant, Francis Duval Smith, is not the owner of real property described as Tracts 1 and 2 in the cross-claim and amended cross-claim of the United States of America and hereinafter more fully described. And these actions, insofar as they relate to said tracts of real property, be and the same are hereby dismissed without cost. This property is more fully described as follows:

Tract No. 1

[Description omitted.--CCH]

Tract No. 2

[Description omitted.--CCH]

(c) That that certain real property referred to as Tract 17 in the cross-claim and amended cross-claim of the United States of America is the property of Virginia McQueen McFayden, subject to the vested dower right of her mother, Mary M. McQueen, widow of Malcolm McQueen, which tract of land is more particularly described as follows:

Tract No. 17

Location of Property--300 acres, more or less, Bladen County , North Carolina .

[Description omitted.--CCH]

That the defendant, Francis Duval Smith, does not have, and has never had, any right, title, and interest in said tract of real property and that these actions, insofar as they relate to said tract of real property, be and the same are hereby dismissed without cost.

(d) That A. B. Carr is the bona fide purchaser for value and owner of that certain part of real property referred to as Tract 15 in Item II(a) of this judgment, as is described in that certain deed from Southeastern Bonding Company to A. B. Carr, dated November 15, 1950, and recorded in the office of the Cumberland County Public Registry in Book 565, at page 186, that the defendant, Francis Duval Smith, is not the owner of so much of Tract 15 as is described in said deed to A. B. Carr, and that these actions are hereby dismissed as to the defendants, A. B. Carr and wife, Esther Carr, and as to aforesaid property conveyed to A. B. Carr, without court costs.

VI. (a) That the tax lien judgment, hereinbefore decreed in favor of the plaintiff, James S. Currie, Commissioner of Revenue of the State of North Carolina, is hereby adjudged and decreed to be a specific and perfected lien upon all property herein decreed to be the property of the defendant, Francis Duval Smith, or in which he has an interest, and lying and being within the State of North Carolina, both real and personal, as of August 24, 1950; and that the tax lien judgments, hereinbefore decreed in favor of the cross-claimant, United States of America, is hereby adjudged and decreed to be a specific and perfected lien upon all property herein decreed to be property of the defendant, Francis Duval Smith, or in which he has an interest, wherever the same may be located, both within and without the State of North Carolina, as of November 23, 1953, as to all of said tax claims (except $32,386.82 of the total tax claim found in Findings of Fact and Conclusions of Law Number I(c)) and as to this $32,386.82 as of February 2, 1954.

(b) That those certain judgments in criminal cases recorded in the office of the Clerk of the Superior Court of Guilford County, North Carolina, (and hereinbefore specifically described and identified in Findings of Fact and Conclusions of Law VI(b)) are hereby declared and decreed to be liens against all real property owned by the defendant, Francis Duval Smith, or in which he had an interest in Guilford County, North Carolina, as of the 10th day of February, 1953, said lien being superior to the lien herein declared in favor of cross-claimant, United States of America, but being subject to and inferior to the lien herein declared in favor of the plaintiff, State of North Carolina.

(c) That that certain judgment entitled "V. G. Rainey, Administrator of the Estate of George Henry Rainey, vs. Francis Duval Smith", for $20,000.00 and court costs, docketed at the February, 1954, Civil Term of Guilford County Superior Court and recorded in the office of the Clerk of Superior Court of said County in judgment Docket 61 at page 61, is hereby adjudged and decreed to be a lien upon real property decreed to be the property of the defendant, Francis Duval Smith, or in which he has an interest, and lying within Guilford County, North Carolina, as of the end of said February, 1954, term of Court, but said lien is inferior to the lien herein decreed in favor of the plaintiff, State of North Carolina, and cross-claimant, United States of America, and is likewise inferior to the lien herein decreed in favor of the State of North Carolina, and the Guilford County, North Carolina, School Board by reason of its judgment of court costs and fine.

(d) That that certain note in the original principal sum of $8,000.00 dated June 1, 1946, and executed by Rob ert Savage to the defendant, Shenandoah Life Insurance Company, Inc., which is secured by a deed of trust of even date from Rob ert Savage to the defendants, A. G. Decker, R. S. Leftwich, and N. D. McNairy, trustees, conveying real property described as Tract 12 in Item II(a) of this judgment, is hereby adjudged and decreed to be a valid and subsisting, specific and perfected lien against said tract of property as of June 1, 1946. It is further adjudged and decreed that the full balance due upon said note with interest is a prior specific and periected lien superior to the specific and perfected lien decreed herein in favor of the plaintiff, James S. Currie, Commissioner of Revenue of North Carolina, and of the cross-claimant, United States of America, and is likewise prior and superior to the general liens herein decreed in favor of the defendants, State of North Carolina, Joseph P. Shore, Clerk of the Superior Court of Guilford County, Howard E. Carr, Ed. T. Coble, John R. Peacock, Zack L. Whitaker, and Mrs. E. M. Burke, as members of the Guilford County, North Carolina, Board of Education, and V. G. Rainey, Administrator, V. G. Rainey, individually, and Frances Betty Rainey. It is further adjudged and decreed that the receiver, Hubert E. Seymour, Jr., be and he is hereby authorized, empowered and directed to pay the monthly installments provided by the terms of the said note, and to pay and discharge the same in full from the proceeds of the sale of the said tract of real property, as and when the sale of the same shall be completed in the manner herein decreed.

(e) That the certain deed of trust executed by the defendants, J. B. Webster, Jr., and wife, Helen S. Webster, to the defendant, Huger S. King, trustee, conveying real property described as Tract 10 in Item II(a) of this judgment to secure notes totalling $100,000.00 is hereby adjudged and decreed to be a bona fide, valid, subsisting specific and perfected lien upon said property as to the final note of $17,000.00, due by its terms on January 10, 1950, together with the interest thereon as of December 9, 1946. It is further adjudged and decreed that the full balance due thereon is a prior, specific, and perfected lien, superior to all liens decreed herein, including the specific and perfected liens in favor of the plaintiff, James S. Currie, Commissioner of Revenue of the State of North Carolina, the cross-claimant, United States of America, and the expenses of the receivership and costs of these actions to enforce and foreclose the liens of the plaintiff and cross-claimant, and the general liens herein decreed. It is further adjudged and decreed that the note of Perry C. Henson and E. E. Boone, Jr., State Court Receivers in these actions, dated July 22, 1953, in the sum of $18,808.83, with interest from date as therein provided and payable to Reuben B. Arthur, is a valid and subsisting receivership obligation which extends the indebtedness of and is secured by the aforesaid deed of trust to the defendant, Huger S. King, trustees, and said receivers' note, together with its security, is a bona fide, valid, subsisting, specific and perfected lien upon the property described in said deed of trust entitled to all of the priorities of said deed of trust. It is further adjudged and decreed that the payment of said note, prior to the entry of this judgment, by the receiver, Hubert E. Seymour, Jr., is in all respects confirmed and approved as a proper distribution and payment of the proceeds of the sale of said tract of real property.

[VII.] (a) That the defendants, Florence Smith Profenius and husband, H. C. Profenius, Florence Smith Lacefield and husband, Joe Morris Lacefield,