The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-05-10
CONTROL0FTHECENTRAL
THE TRUST COMPANY WANTS TO
VOTE ITS STOCK.

A Bill Filed in Behalf of the Company
con-The Court Orders That Gauss
Be Shown on May l 3 Why the Pc
tition Should Not Be Granted.
MACON, GA, May 9-The latest, though
not an entirely unlocked for move in the
tangled affairs of the Central railroad, was
the fling in the United States court this
morning of a bill by Judge Tompkins Of
Atlanta IN behalf of theCentral Trust Com
pany Of New York asking that they be
allowed to vote the $4,000 shares of stock OF
the Central railroad held by it In trust
The order of the court on the petition reads
as follows:
Upon reading the foregoing petition and
on motion of the counsel for the Central
Trust Company of New York, 1t is con-
sidered and ordered by the court that the
complainant. Mrs r. M. Clarke, intervenous.
Central Railroad and Banking Company of
Georgia, aud the board OF receivers of the
Central railroad TO each show cause before
the court at Macon, Ga, on Thursday, May
II, 1899, at 10 o'clock a. M, why the petit
tion Of the Central Trust Company Of New
York that it be allowed to vote forty-two
thousand and two hundred az, POO shares
of the capital stock of the Central Railroad
and Banking Company of Georgia at the
election for directors Of said railroad COM
paDv on May Is. 1892. should not be granted
as prayed for.n
THE STOCK COLLATERAL.
The bill sets out that 10000 shares were
placed in possession of the Central Trust
Company as security for an issue of bonds
by the Georgia company of North Caro-
lina amounting to $4,000, 600. After this
the Richmond Terminal Company pur-
chased the entire capital of the Georgia
company, amounting to $l2 100000, and
still owns that stock, all of which, except
100 shares is deposited with the Central
Trust Company under mortgage securing
an issue of bonds not TO exceed S24, 300, 900.
by provision OF the mortgage $4,000 Of
these last bonds we're to be reserved annually
for paying Off 81 900 Of the Georgia COM
pany bonds, and that the Georgia company
bonds 30 received in exchange for Rich
mond Terminal bonds should be held by
the Central Trust Company until the whole
of said $4,000,000 Of Georgia bonds
are delsvered to the trust company,
when the Richmond Terminal obtains
possession Of all the "a 900 600 bonds of the
Georgia company III exchange, on written
request, 1t shall opply to the Central Trust
shares of the stock of the Central railroad.
When the right to possession has been gain
ed by the Terminal the stock Of the Georgia
company held by the Central Trust Conn
pany is to be delivered TO the Richmond
Terminal Company. $4,000,0 600 of tho bonds
cancelled and the 200 shares of the Gen.
tral railroad stock was to be still held by
the Central Trust Company under deed Of
trust dated March 1889. Thus, when the
Georgia compauy's mortgage ceased TO be
alive on the 10000 shares OF Central railroad
stock it at once became subject to the lien of
the Terminal mortgage.
THE EXCHANGE.
Under the provision of the deed of March,
1889, 50, 447 Of bonds of the Georgia company
were exchanged for like amount Of Rich
mond Terminal bonds, leaving outstanding
ing in the hands Of the public $3.50, 900 Geor-
gia company bonds. or So, 300, 900 Rich
mond Terminal Company bonds $11 500, 900
have been issued and are outstanding. Thuf
the 40, 900 shares of the Central railroad
stock IS pledged, first, to secure an issue Of
81 600, 900 Georgia company bonds all issued
and outstanding; second, when the Georgia
company bonds are retired, taken up and
exchanged for Richmond Terminal bonds
then the 10000 shares are still to be held as
collateral security for Richmond Terminal
Company bonds, $l1 ,5000 900 Of which are
OulSbdLdluh hhu OJbsOuO VI WAlCn INiGuilOuQ
Terminal bonds, in addition to the 81 ,500,-
600. will then have been issued. In no event,
therefore. has the Richmond Terminal any
interest in the Central stock except an equity
OF redemption. The 1900 shares of Central
railroad stock purchased by the Richmond
Terminal from other parties than the
Georgia company IS also in possession OF
the Central Trust Company as collateral,
and in this the Richmond Terminal have
only an equity of redemption. By the terms
of the Georgia company mortgage, 1887,
the voting form of the DO. 600 shares should
be given py the Central Trust Company to
the Georgia company by proper proxy
and the Georgia company has
now transferred the right to vote to the
Central Trust Company. The Richmond
Terminal has also surrendered the right to
vote the 2 200 shares to the Central Trust
Company. The Central Trust Company is,
therefore, fully authorized to exercise vot-
ing power for the benefit of the persons in
terssted in the stock. These are the main
points set out in the BILL Some of the big
gest New York lawyers will be in Macon
this week.