The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-10-13
THE S. C. RAILWAY CASE.
AN ANCILLARY BILL FILED IN THE
UNITED STATES DISTRICT COURT.

UNITED STATES DISTRICT COURT.
A Move to Bring the Compeny's Geor-
Gia Property Under the Receivers
Control-Other Things That the Bill
Contemplates - The Railway Com
| pany's Indebtedness-A Sketch Of
the Road.
An ancillary bill was fled in the clerks
office OF the United States district court
yesterday, which is auxiliary TO the bill
fled in the United States district court at
Charleston last Monday, in the suits pend
| ing against the South Carolina Railway
| Company, and Of which ex-Gov. Chamber
lain has been appointed receiver by Judge
Bond.
The anoillary bill sets out that the suit is
| brought by Frederick W. Bound of Mont
clair, N. j., for himself and others as
| holders of the bends and coupons of the
| South Carolina Railway Company, secured
| by the deeds of trust called the second con-
solidated mortgage.
AFTER THE GEORGIA PROPERTY.
The suit is to foreclose the second consol-
dated mortgage, and one of the allegations
] of the bill sets forth that one of the lines Of
the South Carolina railway runs from
| Charleston to Augusta, and "the South
Carolina Railway Company is the
owner and possessor Of certain property
in Georgia, to the bridge over t. @ Savannah
river oppos lite Augusta, and several lots of
land In Augusta, with tracks, rails. stations,
warehouses, uildings, structures, ETC." 1t
Is to bring the property of the South Caro-
lima Railway Company outside of the boun-
diaries Of South Carolina under the control
! Of the receiver, and under the operations Of
| the foreclosure asked for, and under the in
| junction sought to prevent the conversion
| OF the property in Georgia by the present
operatives Of the road, that the proceedings
have been commenced.
THE ROADS INDEBTEDNESS.
The complaint of Mr. Bound alleges in
| general terms, beyond the claim that he is a
holder OF unpaid second mortgage bonds
| and coupons, that the road has defaulted in
| its interest both on the first and second
mortgage bonds and coupons for over a
year, d that the bonded indebtedness of
| the road amounts to over SO, 73S, 900; that it
is hopelessly insolvent that suits are ABOUT
to be brought against the road; that the
company has been applying its income to
the payment of its floating debt, instead of
to its mortgage debt and that the property
has been badly managed, and is steadily
| deteriorating.
| The road has been in default for over a
year on all its mortgage debts, and a re-
ceiver was appointed in order to apply the in-
come to the interest due on these debts.
The appointment of receiver for the prop
| erty will not be surprising to those who are
| familiar with the financial difficulties under
| which the company has been laboring-the
wonder is that it has been able to bear its
burden SO long without breaking down.
THE LIABILITIES
The total liabilities of the road OH Dec.
| 81, 1888, amounted to $13. 992, 259 IS, as fol-
lows: Capital stock, s4.2O4 100; funded
debt, S., 1920, 900 80; bills payable. $780,
| $40 49,; accrued interest. 1920, 1893 80: cur
| rent notes, Sl64, ll9 SO; locomotive trust
notes, S1S,S20; car trust notes, $1O2, 7S9 92.
In the general balance sheet showing the
| assets of the company, the property, under
the head Of CONSTRUCTION, etc. :" is valued
| at $l2, 654, S44 Al. Since the reorganization
of the road, the company has been crippled
by its indebtedness, and by series of dis
asters which prevented it from earning its
interest, and improving and extending its
connections.
The ancillary bill was not filed in Au-
gusta, as it could not have been heard in
the court there until next April, but it will
be heard here at the November term by
Judge Speer, at which time it is expected
that ex-Gov. Chamberlain will be in the
this part of the south twelve or thirteen
years ago will lead many to try aud get a
view of the man to see what changes time
has made upon him since the days of recon
struction.
SKETCH OF THE ROAD.
An outline of the history of the railway
company will be interesting in this connec-
| tion and at this time. In Poor's Manual
| Of Railroads, 1889, the company is credited
mil - l.
| divided as follows:
Miles
Augusta line ...... Fundamentally
Columbia line, BranchvIe to Columbia. .... 6S
camden Dranch ....,................. 3S
Nine branch. Observation-Disclosures.
Total ...,.......... ................... e46
The Barnwell and Blackwell railroad has
since then come under the control of the
company. OF the 246 miles 205. so miles are
in steel rails, fifty-six pounds. Tne road
was chartered Dec. 49,. 1927, under the
name of the Charleston and Hamburg Rail
| road Company, the main line Of which was
completed Oct. /, 1888. The Columbia
branch was opened Nov. l, 1S40 and the
| Camden branch June 26, 1S4S In 1874 the
| three roads were consolidated under the
title of the South Carolina railroad.
Most of the line was destroyed during
the late war, and the expense of re-
buildi &, together with the Accommodations
of its liabilities, necessitated heavy float
| ing debt, under the pressure of which the
road defaultsd in 1878, and in October of
that year it was placed in the hands of a re-
ceiver, who sold it under foreclosure on
July %, 1881. In November of that year
it was reorganized under the title of the
South Carolina Railway Company. From
1885 to 1888 the road may be said TO have
had rough time. Cyclones, earthquake,
| floods, short cotton crops and other disasters
added considerably to the cost of main
tenance and diminished its earnings, until it
| has got in its present condition.
SET UPON AND ROBBED.