Savannah morning news. [volume] (Savannah) 1868-1887, 1885-03-15
FAILED TO PAY THE TAX.
THE SOUTHERN TELEGRAPH
IN CONFLICI WITH THE CITY.

The Enforcement of the License Law
Brings About an Unexpect, Move
The Authorities Prevented from In
terfsring With the Company's Busi-
ness-Tbe Troubles that Have Given
Else TO the Litigation over Its fairs.
The enforcement Of the local license
law has brought about conflict between
the city authorities and the Southern
Telegraph Company, which is likely to
develop some interesting features. The
tax upon the telegraph companies doing
business in Savannah is $500. The
troubles that have existed elsewhere be-
tween the authorities and the Southern
Company growing out of the collection of
iicensetaXes, 1T has been anticipated, would
give rise to trouble here when the CITY
attempted TO enforce the collection of the
tax. The company made no move to-
wards its payment and the tax passed
into the hands of the City Marshal for
collection. An execution was issued. but
the cOmpany's manager asked that the
proceedings be delayed until last Monday,
in order that if possible he might be able
to secure an extension of time.
The request vas granted. At the eXpi-
ration of the limit agreed upon, the Mar
shal was informed that further extern
sion, until Thursday, had been granted
by the Finance Committee.
The adyisability OF granting this extern
sion, in view Of the complicated condition
of the cOmpanys affairs, was considered
at length by the committee. but it
was finally granted, with the understand
ing that if the money was not paid
promptly a levy would be made upon the
effects of the cOmpany's Office. At the
expiration of the limit, which it was I'M
III
for the company 10 secure funds for the
payment Of the tax,
AN INJUNCTION WAS SERVED
by United States Marshal Wade upon
Mayor Lester, representing the city, en-
joining the levy and preventing any inter-
ference with the Business Of the company.
The order for the injunction was issued
by United States Judge BOarman. of the
Northern District, and the case VIII be
heard in Atlanta on April 10.
The object of the movement is to make
the city common creditor of the CON-
pany, and place it on the same footing
with others holding claims against it.
Owing TO the fact that the COM
pany is in the hands of a receiver.
the manager represents that he is not
permitted to make any disposition of its
/ funds except TO him as an officer Of the
court.
THE COMPANY'S TROUBLES.
The troubles OF the Southern Telegraph
Company began shortly after its attempted
consolidation with the Bankers and Mer-
chants Telegraph Company. The manage
ment under the consolidation. or some OF
its agents or officers and others, is alleged
TO have illegally distracted from the safe
Of the Southern Company something
over 100000 of the cOmpany's bonds
which had bRpn issued nd
attempted to put them on the
the market and perhaps succeeded IN
placing a few small lots. Upon the dis
COvery of this and the additional fact that
the revenues OF the company were rot be-
inc properly appropriated 10 the payment
of its obligations, Malone and other
bOndhOlders joining with him, represent
ing about $500, 0O0-a majority OF the legiti-
mate issue of the bonds-brousht . credi-
tors bill in the United States Circuit
Court of Virginia against the company,
and also the Bankers and
Merchants Company and all others
connected with the Southern
management, asking for an Injunction
against their further managing or mis-
managing its affairs, against their dis
posing of the abstr8cted bonds, etc." and
also asking for a receiver to take charge
and manage its affairs in the interest of
the bona tide bondholders and other cred
itOrs.
This move precipitated a number Of
suits IN various parts of the country,
among them bill for in
junction and receiver at
Augusta, and a similar bill in the United
States Court at Atlanta by Judge Loeb
rane. the court in Virginia granted the
Injunction asked for by Malone and
others and appointed A. L. Boulware re-
ceiver.
ANCILLARY PROCEEDINGS
have since been instituted throughout the
country and the appointment of Mr.. Boul-
ware has been ratified wherever the issue
has been determined. The bill in Augusta
was dismissed and the LOchrane bill, be-
ing similar TO MahOne's, was consolidated
with it and Mr. B0ulwaTe made receiver
under the United States Courts in Georgia,
which puts him in fun possession, as an
officer of the court, CT the entire property
and lines of the company.
The trouble between the authorities and
the company here is similar TO the trouble
in Macon, where the matter was taken