The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1878-09-12
SOUTH CAROLINA RAILROAD CASE.

SOUTH CAROLINA RAILROAD CASE.
The Fight for the appointment of Re
ceiver Begun In Baltimore.
BALTIMORE, Sept. 4, 1873.
The case of Calvin Clafin and Cyrus
Gatewood of New York, John Parsons of
New Hampshire, Frank G. Eddy and
Benjamin s. Hatch of Massachusetts,,
and others, against the South Carolina
Railroad Company, praying an injunc.
ton to restrain certain holders of per-
ton of the second mortgage bonds of the
Road from disposng of them, and an Or
der of the Court for the appointment of
receiver of the Road, was commenced
o-day before Judge Bond, of the United
States Circuit Court for the District of
South Carolina, sitting in chambers in
Baltimore. 1t is charged by the plain
tifs that the affairs Of the Road have
been mismanaged, that it is insolvent, in
default of interest on the second mort
gage bonds, and that a portion of these
bonds was illegally issued. A number
Of parties are made defendants to the
suit, including the trustees of the first
mortgage bondholders, the Peoples Ma
tioual Bank of Charleston, the Green
vile and Columbia Railroad Company
and others. The issue involves several
million dollars.
The hearing of the case has brought
hither large number of the prominent
members of the Charleston bar to repre-
sent the various interests that are at
stake. Ex-Governor Chamberlain ar
rived last night from New York, and Mr..
D. T. Corbin came this morning. Arch
ibald Stirling, Esq, United States Dis
trict Attorney here, had been retained
with them by the plaintiffs.
Immediately upon the opening of the
court, the question of jurisdiction was
raised. Mr.. Chamberlain began to state
the objects of the motion, when Judge
Magrath, interposing, said that there was
a preliminary motion that should be
heard, as it affected the question o. juris-
diction. The Judge, however, allowed
Mr.. Chamberlain to finish, and then
heard Judge Magrath, who read an elab.
crate statement of the objections to the
exercise of jurisdiction by Judge Bond in
the motions asked for by complainants
Mr.. w. E. Earle followed Judge Ma.
grath, and argued strenuously against
the right of the Circuit Judge to hear
and decide the motion outside of the
State of South Carolina. Mr.. Chamber.
lain replied, reciting the history of the
legislation in regard to circuit courts and
the issue of injunctions, &C., by theil
Judges from 1893 to 1872, and in the
course of his argument he remarked thai
the plaintiffs had been fully Informed
beforehand that the question of jurisdic
ton would be raised by the defendant:
and informed by more means than one
and that they were in consequence fully
prepared to argue the point. The Hon
w. D. Porter followed, replying to Mr.
Chamberlain, and contended that it wa!
the object of the laws that justice shoulc
be administered at home. Judge Ma
grath here made the telling speech Of th'
day, following line of argument basec
upon the constitutional law, and, after {
few concise sentences from Gen. Conner
and brief reply by Mr.. Chamberlain
the Judge adjourned the court until l.
a. m. tomorrow, when ne will render hi
decision upon the question of jurisdic
ton. He is confined to his bed to-nigh
with an attack of ague, but has sent TO
papers bearing upon the case, and i
studying it in spite of his sickness.
Bishop Lynch entered the court room
during the trial and, by invitation of tn
Judge, took q seat by him, which he oc
cupied until the adjournment. In hi
argument Mr.. Chamberlain used the ex
preston: "a decision of the Suprem
Court is as infallible as is dogma of tn
Pope of Rome, speaking er-cathedra,
and looked directly at the Bishop
Every one smiled and Judge Bond turne,
and bowed to Bishop Lynch.
BALTIMORE, Sept. 5, 1878.
The hearing of the South Carolin
Railroad case in the United States Cour
was resumed shortly after IL o'clock thi
morning, and Judge Bond at once de
livered his opinion, reading from manu-
script, upon the question of Jurisdiction
overruling Judge Magrath's motion an
ordering the case to go on.
The rest of the day was consumed i
the reading of the bill and of the man
answers made by the defendants. Th
court adjourned between 2 and 8 o'cloc
p. M.
Argument upon the motion for re
cciver will be begun tomorrow by Nj
Chamberlain for the plaintiffs, who wi
be followed by Gen. Conner, the argu
ment for defendants being closed b
Judge Magrath. Speeches will be hear
from Two on each side, but it is under
stood that this means that two of tn
counsel from each interest on the side {
the defendants may argue.
Judge Bond refused to consider 6
present a petition presented by NJ
O'Connor on behalf of the Bank {
Charleston to be allowed to interveD
and defend the interests represented b
,, non-mortgage bonds; and lie also refuse
to listen to the atlidavits of EngLis
sholders of first mortgage bonds, oferc
I by Mr.. G. R. Walker, who sought pos
ponement, as counsel from England W.
/, now on the Atlantic hither bound.