The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-04-18
TO TIE UP THE CENTRAL.
A SUIT TO PREVENT THE ISSUE OF
Sl3.Ooo,ooo OF BONDS.

Ridgeway Smith of Augusta Suing
For an Injunction Against the Gen.
traI Railroad and Banking Compa
to Stop the Issue Of Boads TO the
Central Trust Company of New
York under the Mortgage a Year
Ago-Tae Case to Be Ee4rt Next
Week.
An injunction suit Of great Importance
TO the railroads of the country and COM
merc.al msa generally has bssn filed in the
superior court.
1t is brought by Riigeway Smith Of Au-
gusta to prevent the Central Railroad and
Banking Company of Georgia from issuing
$4,000, 600 worth OF bonds to the Central
Trust Company of New York.
Mr.. Smith is the owner Of 100 shares of
the capital stock of the Central He alleges
that the board Of directors has executed the
bonds and mortgage without authority aud
in contravention of the provisions Of their
charter. The bonds are still in the possess
sion and control of the directors, to the
best OF Mr.. Smiths belief, but as the mort
gage or deed of trust has been delivered to
the Ce ltral Trust Company it is the inte1-
ton of the railroad to also place the bonds,
which he asks 10 be stopped.
NO POWER To DO WHAT IT DID.
The petitioner claims that no amendment
to the charter or any act of the legislature
gives the power to the Central railroad to
execute the mortgage or enter into any such
contract Mr.. Smith says that should the
bonds be sold it will place debt upon the
railroad far in excess of it's capital, which is
800, 000 ard that it would amount, with
other debts of tire company now existing,
to more than double the capital
This fact Mr.. Smith alleges, will lower
the value of his property as shareholder,
if it does not entirely destroy it, aud posi-
bly, render him individually liable at least
to lawsuit for his pro rata share Of the
debts of the company. The contemplated
action of the railroad, be claims, will rem
der It's charter liable to forfeiture.
The complainant alleges that he has de-
manded of the board of directors that they
should not in any way dispose of the bonds
or create any deot, but should cancel the
same, as they are cloud on the title OF the
company, but they have refused to comply
with his demand.
A CHARGE OF CoNNIvANCE.
An interesting portion of the petition
reads as follows: Your petitioner charges
that the said board of directors is combin-
ing and collaborating with the
Central Trust Company of New York
to sell said bonds, in spite OF pro-
tests from the stockholders, and will do so
unless enjoined by this or some other court
of competent jurisdiction"
Judge Falligant, after hearing the petit
tion read, passed an order requiring the
Central Railroad and Banking Company
and the Central Trust Company of New
York to show cause at 10 o'clock on April
25 why the injunction should not be granted
as prayed for.
Mr.. Smith is represented by Judge W.
W. Montgomery of Augusta, who up to
eight or nine years ago was a resident of
Savannah. Judge Montgomery is an ex-
justice of the supreme court and one of the
most noted lawyers in the state.
The mortgage complained of was executed
April l, 1890, by President Alexander and
Cashier Cunningham. 1t was given on that
portion of the road from Savannah to At
lanta and from Gordon to Milledgeville.
Gen. Alexander is now in New Y rk look
ing after the Lease of the Central to the
Georgia Pacific