The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-04-30
CLAIMS OF THE CENTRAL.
THE DANVILLE MAKES ANSWER
AT MACON.

1t Asserts That the New England and
Savannah Steamship Stock Was
Given as Security for Moneys Ad-
vsnced-A Claim That Only $780,
600 Was Received When the Gen.
tral Was Turned Over.
MACON, GA. April 29.-The contempt
case against the Richmond and DanviIle
railroad. which came up in the United
States court here day, was an echo of the
famous trial OF Rowena Clarke VS.. the
Central Railroad and Banking Company,
concluded a few weeks ago. The Richmon
and Danville was represented by Edward
Lauterbaoh, of the firm Of Hoadley, Lauter
bach q johnson OF New York, general couu
sci for the Richmond Terminal, and also by
Capt Harry jackson, of jackson a. Bar
row of Atlanta. II G. Cunningham, OF
Lawton & Cunningham ard Judge Adams
of Adams, Denmark & Adams of Savannah
represented the Central railroad,
and Messrs. Marion Erwin, Dan
Rountree and A. o. Bacon
represented the complainants in the original
bill for a receiver and relief. In this par
ticular case two rules for contempt were
issued, both calling on the Richmond and
Danville to show cause why they should not
turn over to the receiver OF the Central
4,995 shares OF the capital stock of the New
England and Savannah Steamship Com
pany, held by the Central Trust Company
of New York, and also the $50, 600 supposed
TO have been paid es insurance on the union
depot In Macon. They are also to show cause
why they should not be held in contempt
of the court for refusing Co turn over the
securities and money when called upon to
do SO by the receiver.
OPENING OF THE CASE.
The case was called at 10 o'clock, Judge
Emory Speer presiding. After the usual
preliminaries, on motion ofs Mr.. Cunning
ham, the two rules were consolidated and
the case was opened by the reading of the
rule setting forth that the securities held
by the Central Trust Company could only
be released on an order from the Richmond
and Danville. which order had been refused.
Mr.. Lauterbach read the answer of the
Richmond and Danville railroad and elabor-
ated on it considerably In explanation Of tho
situation. The answer was made by John
A. Rutherford, third vice president of the
Richmond and Danville. The position
taken in this answer is that the 1895 shares
Of the capital stock In the New England
and Savannah Steamship Company were
deposited as security for money advanced
by the Richmond and Danville 70 the Cen
tral between June l, 1891. and Jan. /. 1892.
Richmond and Danville had paid $4,000
for debts incurred by the Central prior to
the time the Richmond and Danvile took
possession and prior to the lease Of the Gems
tral to the Georgia Pacific.
WHAT WAS RECEIVED FROM THE CENTRAL.
The receipts for the business transacted
prior TO June !, 1891, did not exceed $l3S,-
900, making an excess OF expenditure, for
which the Richmond and Danville did not
liar Of No
intimetion had been given TO the Richmond
and Danville at the signing of the lease
that such an Indebtedness did exist. In De-
cember, 1891, the Richmond and Danville
gave notice that no moneys would be ad-
vanced without securities and the january
dividends we're only paid when this security
was deposited with the Central Trust Conn
pany of New York in escrow until.
under the terms Of the lease, an arbi-
TRAITOR should decide whether the
Central was indebted to the Richmond aud
Danville. In support OF this claim guam
tity Of correspondence between Gen. Alex
ander and the Richmond and Danvllle peo-
pie was produced.
THE INSURANCE CLAIM.
In answer to the call for the $50 goo in
surance on the Macon depot Mr., Ruther-
ford says: "a claim is made by Mr.. Conner
that $50, 900 has been collected by this COM
pany for insurance upon the depot in the
ClJy OF macon. Inc amount actually
called for the loss of car sheds and offices
was Sl9,222; for the contents of
the same $1,000. The amount
of 1922 stands reserved for
this purpose and will be applied thereto
as fast as the rebuilding of the depot shall
require it, or il the courts prefer it win be-
paid to the receivers to be applied by them
for that purpose AS an offset to this, how
ever, the Richmond and Danville claims
that at the time the Central went into the
hands of a receiver they had on deposit
with the Central's bank $35, ,45l "a as an iu-
div:dual depositor. checks against which
had been dishonored. They ask that this
amount be turned over to them at once.
Capt. Harry jackson read the answer of
the Richmond and Danville officials, which
practically went over the ground above re-
cited.
Marion Erwin opened for the COM
plainants and spoke for some forty minutes.
His point was that since the appointment OF
a receiver aud the voiding Of the lease the
court was really the arbitrator on all claims
and that the securities now in the hands OF
the Central Trust Company should be
brought within the territorial jurisdiction
of the court. Arguments will continue to-
morrow by Fl. Z. Cunningham, Capt Harry
Jackson aud Mr. Lauterbach. who has the