Savannah morning news. [volume] (Savannah) 1868-1887, 1885-06-12
CAPT. GUERARD's INJUNOrIoN.
Maj. BFawley Gives some Reasons WHY
It Should Not BE Granted.

It should Not Be Granted.
Maj. W. II. Brawley. solicitor, and one
OF tue directors OF the Charleston aud Sa-
vannah Railway, has been interviewed in
Charleston in reference to the bill filed in
equity against the officers OF the road by
Capt. J. n. Guerard, trustee, asking for
an injunction to restrain them from is
suing new bonds TO the amount of
Sl,50O,0oo to meet the outstanding indebt-
eduess of the road.
Cspt. Guerard, as has already been
stated, is the holder Of seven
bonds of $500 each, which are
deposited under the agreement Of
June Z, 1850, for the purchase Of the
road. Capt. Guerard charges that the
proposed issue would irreparably iDjure
the old bondhOlders, and that the road
is already sufficiently encumbered.
The NEWS has already given
the facts connected with the
fling Of the bill. Mai. Brawley says: SIT
seems TO me that the experience Of the
last five years ought TO satisfy the bond
holders that the present management Of
the company has been iudiciOus, ana that
they can be safely trusted 20 do what is
best for all concerned. They found the
road in wretched condition. with worn
out rails, rotten crOssties, decaylng tres
ties, broken down bridges and general d.
lapidation. The company had no credit,
and every dollar which was necessary 70
restore the road has been raised upon
their individual resources, mainly from
Mr.. Plants private purse. At time Of
universal depression, when even old
established companies have found II diff
cult TO get along, Mr.. Plant has advanced
money without stint for the purpose Of
arrsa. Lea a..
MS EFFORTS, with the cooperation Of the
board Of directors. Is seen in the changed
condition OF affairs. From being the
poorest railroad On South Carolina,
wherein il Was dangerous 70 travel, II
has become ono 0i the best. Its income
has increased from $4,000 20 something
over S4o0. 600 All this, Of course, has
required q great deal Of money, and COM
mon honesty on the part OF those inter
ested would seem 10 require that this
money ~ expended should be secured.
81 have no knowledge Of the motives OF
Mr. Guerar1's auit or information about
II except what has been in the news
papers, but J have no doubt that when
tif. O1erard is made fully aware OF all the
particulars Of The case he will acquiesce
1n Tie action Of the other bOndholders
Naick was taken IN full view 81 the con-
oiiiOn and necessities Oithe property, and
Wdlch, 50 far ae ] know, has met with
universal appreciation. Any attempt 20
prevent the funding Of the floating debt in
tnege FIRST mortgage bonds would probably
r6euit In q sale OF the road under the out
Standing iud gmonts or under the pTeaent
1rei mortgage. which 81 in default, and Of
course would be- very injurious 20 the
smaller bondhOlders, who, under the
present scheme. will soon receive the In
come bonds b which they are entitled un-
der he plan Of reorganization.
The nye years ofproyisional manage
mont which was contemplated by that
plan expired June 2, 1855. and commit
Tee appointed az the last meeting, con-
eistiug ~ heasre. G. G.. Mcmmmgor, G.
u. simont0n. W. =. Chisolm and myself,
% prepare form OF income bonds for he
parties 20 that agreement, have complei-
ca their work and the same wlll be issued
IN accordance with she agreement to the
parties entitled a. soon us they can be en-
Rrayed. The Reorganization viii be thus
completed uuls1a iueriercd with hy adj
verse litigation. Ofthls, however, have
10 serious apprehension. as 10 is impOssi-
DO what any ul ne parties can obtain amy
aaytntAge from such litigation. The
only tnc0nvouience would probably be
that e would postpone the hnai settle
mont Tor which We are en- anxious.
~ " not unnatural That u bondhold0r
not familiar with the situation should
question TIE propriciy OF 80 largo an ad-
oiuon 70 the frat mortgage debt, but
wnen Il l. known that every dollar Of the
proposed Increase IL Tor money actually
expended and 20 be expended IN the I'M
lH9lement u bis property, there ought
10y " BE- any serious difference OF opinion.
VI course the case would be different II