The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-08-22
SUED FOR SIX THOUSAND.
AN OLD RAILWAY LITIGATION
TAKEN Up AGAIN.

Suit Begun in the United States
Court Against the Savannah, Dublin
and Western Railway-The Central
Railroad and 3. A. Denmark Sued By
Philadelphia Parties for the Payment
OF Six S 900 Bonds.
bill in chancery has been filed in the
United States district court by George E
Fort of Philadelphia for himself and others
against the Savannah, Dublin and Western
Railroad, the Central Railroad and Bank
ing Company Of Georgia, as owners Of the
Savannah. Dublin and Western. and B. A.
Denmark, ESQ.,, as purchasers Of the road at
It's auction sale by the receiver.
The complaint recites that Mr.. Fort is
the holder Of six 81 900 bonds, issued by the
Savannah, Dublin and Western through its
trustees. Z. P. Howell, r. U. Hardeman
and III. E w. Palmer aud that the orator,
on behalf OF himself and other creditors Of
the Savannah, Dublin and Western Short
Line Railway Company, who will be made
parties to the bill and will contribute to the
expenses thereof, says that he is the owner
of six bonds, bearing the date of Jan. 1, 1886.
payable on Jan. l, 1915, with coupons at
tached, each for the sum of $50. payable
semi annually. These bonds are Of a series
of 5000, each for the sum of 81 900, bear
ing the same date aud payable in like
manner, all executed by the Savannah,
Dublin and Western, and secured by a
mortgage made by the company to Its
trustees upon it's railway and all other
property owned by it.
Default, it is claimed, was made upon the
rsE q IL Al
coupon has not been paid nor any subse-
quent coupon or interest on the bonds, and
under the terms of the mortgage the princi-
pal matured and became due July l, 1885,
The bill then goes on to give the history OF
the litigation in which the Savannah, Dub
lin and Western was involved. leading up to
its sale by the receiver, Col R. j. Davant,
on the first Tuesday in July, 1889, and its
purchase by Mr.. Denmark for the sum Of
$35, 600
The bill calls the purchase by Mr.. Dem
mark a nominal purchase and declares that
the Central railroad was the real purchaser,
and that this fact was carefully concealed
from the public and the creditors of the
railway until some time after the purchase
The bill dwells at length upon this feature Of
tho case.
The complaint further charges that the
purchase by the Central was contrary to
to defeat competition by the purchase Of
what would have been competing line.
1t declares, therefore, that the purchase by
the Central is illegal and void, and thatathe
property is still subject to the lien of the
orators mortgage bonds, and that, the re-
ceiver having been discharged, the trust is
without trustee, and one should be ap-
pointed by the court to take possession of the
property and administer it for the benefit
of the creditors under the order of the
court. The orator declares that the road is
insolv vent, and still subject to the orders
held by him and others, and he petitions the
court to appoint a receiver to take charge
Of and sell the road for the benefit of the
creditors. He requests that the defendants
be cited to appear for the hearing of the
case at a certain time to be set by the court.
The bill is signed by Henry r. Jackson
and @. N. West, oomplainant's solicitors. A
copy Of the bond and the accompanying
mortgage is appended to the bill, together
with copies of the superior courts decision
in the case and the paper Of sale from the
receiver to Mr.. Denmark.