The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-01-29
THE RECEIVER RETIRED.
Judge Jere Baxter ReVOkes His For
mer Order.
IRnttc Road All Right-The
Raid Knob Branch,

railroad men, anxious TO hear what
the Court would decide in the matter
Of the Memphis, Selma and Brunswick
Railroad Company. Those who knew
all the facts in the case. and knew
Judge Baxter's love OF justice and his
contempt for anything with the least
color OF chicanery, felt pretty sure that
he would revoke his former action
upon rehearing of the case. Judge
Hammond sat with Judge Baxter,
who came in from Knoxville on the
o'clock train. AS soon as court was
opened Mr.. King Of the firm OF CAL
houn & King, representing the Gu2p
antee Trust and Safe Deposit Coo
pany, began the reading of the bill, a
synopsis OF which has already been
given in the APPEAL. He also read
the amended bill filed since the stop
order was granted by Judge Ham
mond.
THE AMENDED BILL.
The amended bill recites the fact of
the organization OF the company, the
various futile attempts made to build
il, and its final sale under foreclosure
mortgage. The story of Wo,fe's CON-
nettion with the scheme after the fail
ure Of Bosby and others is then re-
cltsd at ength.
Coming down 10 Mr.. Newman Erb's
connect GA with the road as receiver,
the bill says that officer, before sale
which was attempted before his APP
pointment, Green, Hamilton & Co.,
Newman Erb and Dunavant & Kelly
conceived scheme the obje OF which
was - defrsud sill the creditors and
stockholders Of the Railroad Commits
sioa except those
IN SYMPATHY WITH THE scHEMRs,
and turn the property over 70 pa,ties
who would enter with them into the
scheme nd complete the road to Hol-
ly Springs. Shortly aiterward New
man Erb was appointed provisional
receiver, and he submitted a report,
saying IL would require $50, 900 TO put
the road then built in repair. Said
Dunavant was present in count when
the report wal read, aud also heard
the decree, based on compromise, to
which complainant never consented.
On the CONTRARY, Minor Meriwether,
attorney f)r WolfA and the railway
company, stat ID in open court that
his clients
KNEW NOTHING OF THE COMPROMISE
aud had no. consented to it. The coa-
tact with Dunavant & Kelly for
building the road was afterward APP
proved by the courts, though no. in
accordance with the decree, Dunavant,
Piper & Kelly getting the whole OF
the $500 900, which was the limit for
building and equipping the road and
paying what WAS due by 1t to the
Kansas City road. 1t was greatly in
excess OF the actual cost OF construc-
ton, and was paid in furtherance OF a
scheme to defraud other creditors.
Erb went into court from time to time
and got various orders and obtained
advances from the contractors for
rolling stock, go that at the time the
road was accepted by the court as
completed, instead OF there being an
Indebtedness of the line OF $500, 900,
as contemplated by the alleged con-
sent decree, there was
AN ADDITIONAL INDEBTEDNESS
Of $4,000, also the debt due the Kan
sas City railway. After the road was
accepted by the court, Erb and others,
for the purpose Of forestalling opposi-
ton 10 their scheme, asked Wolfe
what he proposed to do. He raid he
intended to resist their scheme OF re-
organization. Erb, still the receiver,
stated to Wolfe that they might pro-
vide for him; tina. they knew he hal
lost great deal of money in the en-
terprise, and that If he would nego'
t'a'e loans for the completion OF the
road, the mortgage might be increased
from the authorized $4,000 to $40, 900,
and WOlfe's claims might be satisfied
out OF the additional bonds. They re-
turned to Memphis, promising ID let
Wolfe know what
THEY WOULD DO TO SAVE HIM FROM
LOSS,
but never communicated with him.
Erb, for himself and associates, while
he was receiver, purchased the certiti-
CO ss issued by him ri from 80 to 90
cents OH the dollar. Erb and his asso-
cistes euCc eeded In purchasing all OF
the certificates except few thousand
dollars, and in this way obtained con-
troll of the road.
The bill further charges that Erb,
while receiver OF the Memphis, Selma
and Brunswick and also attorney Of
the Kansas City, Springfield and
Memphis, decided valuable privileges,
terminal facilities and rights Of way
belonging ID the former COMPANY to
| L. fAW mo thn u N N.
sas City road having full knowledge
at the dime that a fraud was
being practiced; and, further, that
RRB MADE FALSE REPRESENTATIONS
to the court at Oxford to enable him
to carry his scheme int , execution.
That he planned an 1miiable scheme
10 dtf;aud Wolfe aud other creditors
interested in the company. Pace,
Leake and others OF Richmond, Va
we're fully inf Irmed OF all Of Erb's un'
lswf1l acts, but coniederated with him
and Dunava1t, Piper and Kelly, fot
their own aggrandizsment| The prop
erty 80 taken possession OF by the
Memphis, Birmingham and Atlantic
Railway Company is worth 81 900, 600
and the net proceeds amount ID $780,
900 per year.
THE APPLICATION REFUSED.
Mr.. King remarked, at the conclu
son OF the reading OF the bill, that the
prayer was the usual one, and some
collcauy then ensued between hin
and the judges, which was listened t
with silence by the attorneys on th'
other side. Judge Baxter and Judge
Hammond held a brief conference
Judge Baxter, without waiting to heal
from Col. CAN'T, said that the bill
showed on lis face that the plaintiff
was q party 10 the proceedings in tbs
court at Oxford, Miss, and il he haG
not been would, no doubt, upon the
allegations made in the bill, be en-
titled to relief. As shown by the bill
there were many grounds for relic
, and some suspicion OF rascality. Blu
, the remedy OF plaintiff was in thu
court in Mississippi, either by appea
or by a bill Of review, and this conr
, could not undertake to pass upon tn
. orders made by Judge Hill, who's
: court had coordinate jurisdictioD, ant
= the only source OF relief lay in the Su