San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1892-06-14
THEIR TROUBLES ENDING.
THE REORGANIZATION GOMMIT.
TEE WINS.
San Antonio and Arkansas Pass In
debtedness VIII All Be Paid
and the Receivers Dis
charged.


San Antonio aud Arkansas Pass Rail-
way company and reorganization COM
mittee for the discharge of the re-
ceivers of the road and restoration of
the property to the company was held
before Judge King yesterday alter
noon, beginning at $50 o'clock.
Judge Willie opened the argument
for the committee and said he con-
sidered it as for the best as all parties
now holding any Indebtedness against
the road, whether workman or bond
holder, could then get their money.
II the company was given possession
OF the property, all debtors would be
fully protected under the law.
Judge McLeary argued against the
the motion, and said his clients,
Gurley, Ross and Gurley, had judg-
ment for $4,000, which was q just
claim and must be paid.
The reorganization committees at
torneys accepted this and said it
should be paid when the road was
given over to tina company again.
The court suggested that the total
| Indebtedness be ascertained and the
amount to be placed in the master in
chancery's hands.
Mr.. Withall, representing several
creditors, asked the court to protect
his clients. The reorganization COM
mittee's attorneys said their PROPOSE
ton intended the payment OF these
claims as we'll.
Hon. G. w. Ogden then argued for
| Ii motion.
s. G. Newton argued against, say
ing there were ST 200 600 indebted
| ness which had'not been presented
| and was ignored by the committee.
This should be paid before the re-
| ceivers We're dismissed. Counsel for
petitioners stated that but SIG 900 had
| been paid prior to the receivership
| and there was little chance of more
being paid under the receivership.
Mr.. MyDderse-They say that the
| figures have been taken from the
books of the company by some one,
we know not whom, and that it rep.
resents the indebtedness of the COM
/
| to the master. They have both fallen in
error and naturally, when we remem.
Der that neither of them represents
any one of the alleged creditors.
Their information Is nullity and
they are, therefore, not correct. This
statement which they exhibit pur-
ports to be list of the Indebtedness
other than that passed upon by the
master. Your honor will see that
out of this 81, 250, 900 over 100000 Is
due to Miff1in Kennedy. But Mifiiin
Kenedy's claim has been before the
master since January, 1901, and 1t is
owned by the reorganization com.
mitlee. Therefore, that 100000 is
knocked out of this ST., 900 An
other apparent claim is that of
Mr.. Lott for $l47, 900. Mr..
Lott Is In the court and he
will tell you that this is
gross error and that the company
does not owe him one penny. You
can see that IN this list it is stated
that Hugo & Schneider, Colonel
Breckenridge, MIR. Heuermann and
others are creditors, and you will fluid
that these gentlemen have all been
before the master, have proved up all
that they want and are satisfied,
and therefore what the counsel al
leges is an error and is not right Mr..
Kniffin's claim which was so ably
and eloquently presented by General
McLeary, lie also before the master
and when adjudicated as prior claim
it will be paid. 1t is charged that we
have no money and that we give
nothing but promises and that we are
unwilling to pay these demands be-
tore we get possession of the property.
That is not so. We have the money
and are willing to pay 1t. The
bondholders are as much creditors |
of the road as those that |
General McLeary presented and |
in addition tn withdraw |
ing their objection to the amour tsnot |
owned by them they now come for
ward and offer to give every guaran-
tee that can be given for the payment |
of these debts, and say now that If |
there is q single creditor that has an
adjudicated claim let him come for |
ward and we will so modify the de- |
cree that the money covering his in |
debtedness will be paid into the reg
istry of the court provided the same |
decree restore the property to. the |
railway company. If Mr.. McLeary
wants to have the money paid in that |
way il will be done, or we will pay it |
direct to him provided the court gives |
us control of the management and |
possession of the property.
Mr.. McLeary agreed TO this pro- |
position. Mr.. Lewis, representing |
other creditors, said he was willing,
also.
The court instructed the attorneys
interested to get together and draw |
up q satisfactory decree which the