The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-08-04
A BIG SUIT ON HAND
THE SAVANNAH, FLORIDA AND
WESTERN TO FIGURE IN 1T.


the Building Of the Road.
A bill or an injunction against the East
Georgia and Florida Railroad Company
as presented to Judge Speer last week.
The bill is in behalf Of Charles Fl. Hamilton
Of New York and William F. Bishop of
Connecticut, and is against the Savannah,
Florida and Western Railway Company,
the East Georgia and Florida railroad and
William V. McCracken, George A. Evans
and Neil Mcdonald of New York, partners
under the firm name of William Y. Nc
Cracker e Co. A receiver was asked for
tie East Georgia and Florida Railroad
Company.
1t is claimed that the company was char
tered TO build a road from point in Glynn
county to st. Mary's, in Camden county,
and that the route was after ward diverted
from its southern terminus to JesUp. The
object, it is claimed, was to connect at st.
Mary's with the Florida systems. The road
would have opened up large tract of land
and would have bssn competing line to
the Savannah, Florida aud Western rail
way.
Four years ago s4Co, 900 of stock was
issued, and 80 per cent. of it was issued to
AcCracken q Co., 30 per cent. to the
plaintiffs, and 10 per cent. to C. p Good
year, W. e. Kay, Charles II. Hamilton,
NJ. L. Dill, NJ Dill, II. L. Monse and A. H.
Cox IN shares equal to one-seventh Of 10
per cent, and John T. Collins and NJ. NJ.
Welsh one-fourteentb. The interest Of the
incorporat0rs at St. Mary's and elsewhere
70 De divided IN the same way, and III
THIS distribution Hamilton acted for
Bishop and himself as co-partuers. BY this
| arrangement the plaintiffs became entitled
| 10 ,@OO shares of the capital stock of the pro-
posed railroad and a One-seventh interest
IN the right of way, improvements and
franchises In 1870 the Great Southern
| Railway Company was chartered to
constructs and operate a railroad from
Mulen In straight line to st. Mary's river,
then to connect with the Great Southern
| railway of Florida II 1877 BY a decree
t the superior court of Wayne county. the
'ltlre assets Of the Great Southern railway
were sold to Willis Clary at receivers
sale. Clary died, leaving his widow the
owner Of the Great Southern Railway
Company, and she thereafter ''pooledr her
interest with the interest Of plaintiffs and
their associates in the East Georgia and
Florida Railroad Company
A contract was made between the rail-
road company aud McCracken & Co to
DuilNA gnu CHulp tut IOtu lEOUl fiarB'S Road
to Jesup, and later on a contract was mad
between Charles II. Hamilton and Nc
Cracken & Go. whereby the promoters were
declared to be severallY the owners
Of certain interests of the right of way.
grading, work and materials. and of certain
grants OF land and concessions conditioned
on the construction and completion of the
road, and In certain rights and franchises
belonging to the Great Southern Railway
| { ,OmnanV hyr vubi oh,
terests OF the prom tiers in the right Of wav.
improvements, work, franchises, rights
and privileges, and one-half of
| the grants and concessions, which, with
interest, we're l 200 shares # the caDital
stock Of the East Georgia and Florida com
pany, one-seventh Of the right of way and
| improvements, and one-fourteenth of the
| grants and concessi ions For this transfer
| McCracken agrees to pay Hamilton $4,000,
| assign to him ], 100 shares of the capital
! stock of the East Georgia and Florida upon
! the completion of the road, and as soon as
! the rights TO the shares should accrue to
| McCracken " Co., aud that in the mean
| t1me McCracken q Co. would hold the
same as trustees for Charles H. Hamilton
The bill alleges that subsequent develop
| ments demonstrate that McCracken g. Co
| did not intend in good faith to carry out
| their contract to construct and equip the
/ e.AAA CtAA3 bOb tAdb ulSJ GlluDlN PROPOSED 10
| get possession Of the rights of plaintiffs to
| sell them out to the Savannah, Florida and
| Western railway, without regard to the
rights of plaintiffs, and that the entire
| consideration OF the transfer to McCracken
| depended upon their undertaking to
| build and equip the road of the
| East Georgia and Florida Railroad Com
| pany. BY means of the contract Nc
| Cracken & Co., it is claimed, obtained CON
~ ha no, al o. N.,l-- i Il.
| the East Georgia and Florida Railroad
| Company and elected board of directors
| IN their exclusive interest
The bill also alleges that at the time of
sale TO the Savannah, Florida and Western
| railway Company the latter company
| knew of the contract with McCracSen 81
| 20. with the East Georgia and Florida
| railroad Company to construct and eouiD
| the line, and before the transfer aud sale
was consummated the plaintiffs gave the
| purchasing company notice OF their rights
and interests in the premises, and an addi
lonaI notice prior to payment of the pur-
chase money by the Savannah, Florida and
| Western Railway COMPANY, that such pav-
ment would be at their peril.
The transaction, the bill charges. was a
contract or agreement which has the effect
| or was intended to have the effect. to de.
feat or lessen competition and to ENCOURAGE
| stitation Of Georgia.
The bill states that the plaintiffs believe
| that the Savannah, Florida and Western
! having obtained possession of the franchises
! and properties of the East Georgia and
| Florida, have made no effort looking TO
| the construction of the road. but have
| abandoned the project, torn down and re-
moved the bridges and have evinced an in
| tentlon to defeat the enterprise.
| The East Georgia aud Florida is an in
| solvent corporation, and the plaintiffs
| claim that its franchises and properties
have been rendered valueless, and that in
| equity the Savannah, Florida aud Western
should have assumed aud performed all the
obligations and contracts of the East Geor-
gla and Florida railroad, and OF McCracken
" 20. including the contract TO build and
equip the road, and to pay the plaintiff,
exc, but when so requested have Totally
refused
The contract of sale the plaintiffs say IS
| absolutelyvo and is in equity nosbinding
but that the Savannah, Florida and WesI
ern, notwithstanding i 5 knowledge of these
| wrongs, has paid to McC~acken a. Co a
large sum of money for tho properties and
| franchises of the East Georgia and Florida
| Company, and TO protect it has taken from
| McCracken a. Co. a bond of indemnity
| holding the railroad harmless.
The proposed road is considered entirely
| practicable, and there are capitalists the
plaintiffs say, ready to build it. The
plaintiffs say they are remediiess at law
and can obtain adequate relief onlv in
/ AOfIfV ash e,-