The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-07-05

Interest on the tripartlte bonds and GER
tifioates of indebtedness"
RESULTS OF THE DEFAULT.
The bill goes on to state that the default
will impair confidence in the company,
render probable the institution Of suits
against it in the several states where its
lines are operated and will expose it to the
danger of having its rolling stock, material
and other property levied on under taxes
and executions which would seriously en-
barrass its operation and lead TO most
disastrous consequences.
The Central railroad operates about
1000 miles of railroad the bill states. be-
sides the steamship lines and a large part
or the business of this section Is done over
its lines
A large part of the value Of its proper
ties lies in the unity and integrity OF its sys-
tenn aud TO dismember or disintegrate 1t
would be 10 destroy q very large proper
compose and constitute It. The disinte
grafton or ACKNOWLEDGMENT, therefore, Of
of the several parts or lines
which go 10 make il up would not only be
disastrous to the stockholders and security
holders and creditors OF the Central. but
would likewise be injurious 80 the several
companies which 1t controls and operates.
A PROSPECT FOR REORGANIZATION.
Nv bile this company is now Insolvent,"
says the bill, Sin the sense that IL Is unable 70
meet its maturing obligations, your orator
verify believes shat IL the integrity of its
system is maintained and Its properties and
interests conserved until pro-
per plan of reorganization can be
perfected IL can be re-established
upon a sound basis and restored TO pros
porous conditions. To accomplish this, how
ever, the immediate interposit1on Of court
Of chancery is absolutely necessary for the
purpose OF protecting the integrity of the sys-
tenn and OF saving II from disintsgration
and preventing tbs serious and irreparable
losses that this disruption would entail
upon the stockholders, creditors and all
othor persons who are 10 any, tnter-
ested In the property"
For this reason IL is stated it was deter
mined to invoke the protection of the court
for the preservation of the property and
the benefit OF all interested In it, in order
that the great railroad system may not be
destroyed and its assets scattered by multi
tudinous expensive and disastrous Ntiga-
ton. The appointments Of receiver was
therefore requested to take charge OF and
operate the road and its properties.
The use Of the names OF the Central Trust
Company of New York, the Farmers Loan
and Trust Company of New York and
other creditors Is formal, all these creditors
being favorable 10 the present disposition
OF the property.
JUDGE sPEER's ORDER.
Judge Speer's order appointing the re-
eeiver is as follows:
1t is considered ordered and adiudged that
II, N. Conner be, and he !s hereby constituted
and appointed receiver of SAID Central Railroad
and Banking Company OF Georgia and OF the
auxiliary aud dependent corporations which,
by Ownership OF stock, 1t owns or controls,
namely, the Ocean Steamship Company of Sa-
vannah, the New England and Savannah Steam
ship Company, the Montgomery and Eufaula
Railroad Company, the Savannah and Western
Railroad Company the Port Royal and Augusta
Railway Company, the Port Royal and Western
Carolina Railway Company and the Savannah
and Atlantic Railway Company and he is
hereby authorized and directed such re-
Oeiver TO take possession, charge and control OF
said corporations and their properties and as
sets OF every kind aud to operate the same, and
to tako possession, charge and control Of all the
railroad and stes nship lines and railroads and
steamships owned. leased otherwise oon-
trolled and operated by said Central Railroad
age and operate the same, and to take possession,
charge and control Of all the properties, real,
personal and mixed, and all the effects and
assets Of said Central Railroad and Banking
Company OF Georgia of every kind and oharac-
ter and to manage and operate the same under
the order and direction OF this court, having
and exercising all the rights and franchises be-
longing or sppertainng to said cor poration.
Said receiver is hereby authorized to collect
all accounts, demands and claims of every kind
now due, or hereafter accrung to said CON-
pany, whether the same arise ex contractu or
ex del cto and to bring suit therefor when
necessary, and he is further authorized TO in
stitute aud to defend any legal proceedings
whenever necessary for the enforcement or pro-
lection of the rights of said company In this or
in other jurisdictions.
To tho cad that the integrity OF the Central
railroad system may bs preserved said receiver
is hereby authorized, after defrayinR all op-
ara ftFN- To ma mt 1T IA at
ings the rentals and other fixed charges accru-
ing to other conn anies, or resulting from the
use and operation OF their lines and properties
as O part of said system.
Said receiver is authorized 10 employ counsel
and to pay reasonable compensation for such
service.
And all and further powers that are usually
exercised by receivers of similar corporations
are hereby delegated to said II. M Conner as
receiver as aforesaid; and the corporations
named herein and in the bill Of complaint, their
officers, servants and agents and all other per-
sons whomsoever, are hereby restrained and
enioned from in any wise interfering with his
possession, use, control OF operation and man
agement of said properties herein mentioned,
and from in any wise obstructing his exercise
of any Of the rights duties and powers herein
and hereby conferred upon him.
And the court hereby reserves the right TO
modify this order in any respect hereafter as
may appear proper for the protection of all
the rights and interests involved.
And It is further considered and ordered that
United States court at Macon, on July ID, 1892,
at 10 o'clock a. m, why this receivership hereby
created and the injunction herein granted
shonld not be made permanent.
Immediately after the adjournment Of
the directors yesterday morning and the
approval Of Mr.. Corners appointment the
following circular was issued announ cling
his control of the property:
CENTRAL RAILROAD AND BANKING COMPANY,
SAVANNAH, July 4, 1892
CIRCULAR NO, |.
Having been appointed receiver by an order
issued by the Hon. Emory Speer. presiding, out
OF the Fiftn circuit court OF the United States
for the Eastern division of the Southern dis
trict OF Georgia, under bill filed in said court
on behalf OF the Central Railroad and Banking
Company of Georgia against the Farmers Loan
and Trust Company and others, defendants of
all the assets, property, and franchises OF the
said the Central Railroad and Banking Com
pany OF Georgia. of the Ocean Steamship Com
pany of Savannah OF the New England and
Savannah Steamship Company, OF the Mont
gomery and Eufaua Railway Company, of the
Port Royal aud Augusta Railway Company, Of
the Port Royal and Western Carolina Railway
Company, and of the Savannah and Atlantic
Railway Company, hereby assume control, as
receiver under said order, OF all the assets prop
erty and franchises OF the above named com
panies. The operations Of the same will be
conducted by the heads Of departments as
heretofore ald until otherwise directed.
H NJ CONFER, Receiver.