Savannah morning news. [volume] (Savannah) 1868-1887, 1881-04-22
RAILROAD IMPEDIMENTS.
The Halt in the south Carolina
R aflr o a d ReorRanSxatIOn-Am
Alarming Runaor.
Charleston Nesos and Courier.

charleston Netcs and Courier
We publish today a statement bv
Major W. H. Brawley, a member of the
purchasing committee, giving the com
mittee's view of the cause of the delay
in recognizing the South Carolina Rail.
road, and showing what steps are being
taken to remove the obstruction, and
with what prospects of success.
According to Major Brawley's state
ment, the whole of the creditors OF the
South Carolina Railroad have accepted
the arrangement proposed by the Pur-
chasing Committee. excepting three of
the five members of the syndicate who
lent the company. before the presses
litigation began, considerable SUI
money. The amount dEe the s--ul.osa.so
on their loan is $112 go IT, sSculhs,u - aho,,s
they hold have a cash sAiue ol aOoue
four hundred tIsilsan4 dollars; the Sc
curities incInafg $3.50. 900 second mort
page honds with coupons from 1878,
s84 ono seI6nd mortgage coupons, $37,
! 500 firef mortgage bonds, and 1000
sharos~ of stock. Upon the dis
mise.1 of the appeal. the syndicate can,
- once, realize on these securities and
pay themselves. Or, the amount due
them will be paid on demand by the
Purchasing Committee. But three of
the five syndics refuse to accept such
payment, and decline to consent to dis
miss the appeal Behind the claim for
money advanced by the syndicate is a
claim for $25, 900 for lawyers fees, with
which the Purchasing Committee have
| nothing to do, and which is not included
in or affected by the present litigation.
Unless the claim of the lawyers is the
secret of the present obstruction, what isl
A most sinister rumor is in circula-
ton. 1t is. that the Clyde syndicate
alarmed at the prospect that the South
| Carolina Railroad, when reorganized and
/ an active member of the South Atlantic
alliance, will be able to frustrate the
schemes Of the Danville combination to
divert business from Charleston and Sa-
vannah-is anxious to buy the claim of
the syndicate, with view to using it to
protract litigation and defer the reor-
| ganization of the South Carolina Rail
road. Upon the South Carolina Rail.
road, more than on any other SIN
| gle agency, depends the life and
fortune of Charleston. The South
| Carolina Railroads expectation
of strength and development hangs on
speedy reorganization and active work in
the South Atlantic or Fisher Wadley-
Sloan alliance. In this sense. whatever
delays reorganization Injuries Charleston.
To give to the Clyde the means of him
! dering reorganization is to sacrifice
Charleston for the benefit Of Virginia
ports.
| We feel that we do no more than our
duty in laying the facts, as given to us,
before the public, who are so deeply
concerned in what is going on around
us.
THE sYNDICATEs STAND.
Having published the views of the
Purchasing Committee regarding the de-
lay in determining the litigation in the
South Carolina Railroad case the NsOs
and Courier Yesterday invited Messrs B.
II. Rutledge, w. G. DeSaussure and
Charles Inglesby, three of the counsel
for the syndicate, TO give their view of
the matter, with especial reference to
Major Brawley's statement. The answer
of the counsel to the questions asked is
as follows:
'The agreement between the South Caro-
| lima Railroad Company and the syndicate pro-
! vides that the latter shall be reimbursed for
| all their advances with interest and for 'all
| expenses which they may have been put to or
Incurred In the penoiDg suit this agreement
was aSSailed, and the securities held under it
were attacked. The decision of Chief Justice
Waite has sustained the one and validated the
| other
| ment the syndicate claim that they are entitled
| to be reimbursed the counsel fees to which
they have been subjected by the litigation and
which they claim are legitimate portion of
| the expense contemplated by the agreement
| SO far from obstructing any settlement they
have offered to accept easier terms than any
| other creditor whomsoever Of like rank
in this. that they were willing to
receive payment entirely in new first
mortgage bonds, provided the market
| price OF the same should not be less than
ninety eight cents on The dollar while the other
creditors we're to receive one-thiTd cash and
| the balance in bonds. They have further Of
| fered to submit the whole controversy to a
referee to be agreed upon by both sides, with
| the privilege of either side to appeal from his
| decision to Chief Justice Waite, and the opin-
ion OF the Chief Justice to be final in the mat
Upon the conclusion Of this agreement be-
tween the parties, all appeals to be discon-
tinued and the Purchasing Committee there
upon be at liberty to proceed Immediately
with the scheme of reorganization. The syn
dlcate have insisted only on two things First,
that the settlement so made should be a final
ity; and secondly, that it be made in a reason
able time. They and their counsel wilt not
consent that the claims Of all other
creditors ere should be fixed and settled,
open to indefinite litigation of possibly
several years duration. The negotiations be-
tween the syndicate and the Purchasing Com
point except one, namely: The committee in
sisted that the referee should be appointed
special master in the cause To this the syn
dicate declined to acceda, because it opened
the door to an appeal to the Supreme Court of
the Ubited States, which would tie them up
for possibly four years, and in this way would
defeat the object and purpose of the agree
ment tO-wit: a speedy decision of the whole
matter by the Chief Justice of the United
States.
Upon this declinatlon the Purchasing Com.
mittee broke off negotiations and began the
present proceedings in the Supreme Court at
Washington
Two objections have been made to the ac-
count Of the syndicate; first, the number of
counsel engaged, and, secondly the amount
charged by them. Each member of the syndi-
cate. i've in number, employed his usual and
regular counsel Complainauts holding about
81 OOO0 out of $500 900 second mortgage bonds,
were represented in Baltimore by five counsel,
namely: Messrs. Chamberlain, Corbin, Stone,
Mitchell and Sterling. For their services In
securing the appointment of a receiver these
counsel were paid, by the order Of the Court,
about $23, 900.
The counsel for the syndicate for three
years have labored in behalf of their clients,
and have succeeded not only in vindicatinR
their conduct, but also in val dating over
$500 900 of securities which had been assailed,
aud which will now enure 10 the benefit of the
road.
This is plain statement Of the facts Of
the case, and now you and the public can
draw your own conclusions and form your
own judgment"