The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-06-09
THE STEAMSHIP STOCK.
1rDGE SPEBR ORDERS IT DELIv.
Erred TO THE CENTRAL.

An Interesting HISTORY or low the
stock Came to be Placed In Escrow.
A Receivers Certificate for SI73,-
575 90 to be Placed in Escrow to
Await the Adjustment OF Accounts
Between the Richm md and Danville
and the Central-Full Text OF the
IDecision.
MACON, GA, June S.-Judge Speer at 10
o'clock a. m. to-day rendered decision in
the case Of the Central Railroad and Bank
ing Company against the Richmond and
Danville Railroad Company. in which the
Central claimed possession of 1895 shares of
,he Savannah and Boston Steamship Com
pany's stock, the same being part of the
securities of the Central railroad. The
stock had been placed in escrow. to induce
the Richmond and Danville to comply with
its obligation, under the lease of the Central
TO the Georgia Pacific, relative to the fixed
charges of the Central. Judge Speer or
dered the stock turned over to the Central
and receivers certificate for S173,575 90
placed in escrow in lieu of the stock to
awsit the adjustment Of accounts between
the Central and Richmond and Danville.
In the circuit court of the United States for the
Eastern division of the Southern district of
Georgia. H. N. Conner ct al ., receivers for
the Central Railroad and Banking Company
OF Georgia versus the Richmond and Danville
Railroad Company In equity. Proceeding
BY the receivers % recover assets belonging to
Il Q trust. LawtOn Cunningham, Denmark
Adams & Adams, of counsel for the movant
Henry Jackson, contra.
STEER, Judge.
The proceeding in this motion belongs to the
equity cause of Rowena NJ. Clarke VS. the Rich.
mOnd and Danville Railroad Company ct al. 1t
supplementary to a proceeding heretofore in
stituled by the receivers to effect the restora-
ton of 4,995 shares Of Savannah and Boston
Steamship Company's stock, which are a part
of the securities to which the ntral Railroad
and Banking Company Of Georgia claim
the title The prior proceeding was
merely a rule requiring the re-
spondents to show cause, in summary
way, why the stock in question should not be
Immediately. and Internationally delivered In
to the control of the receivers. The respond
ents answered that rule; and the issues pre-
sented by the rule and answer, after thorough
and exhaustive argument, were determined by
the court on the 9th of May, of this year. The
substance of the decision may be understood
by the following extract from the opinion
filed After stating that the lease had
been abandoned; that the controversy could
not, therefore, be settled by arbitration, as the
lease provided; that the Danville company
therefore did not have an equitable right to in
sist that the stock should be held in escrow until
it could be Observation-Disclosures being impos
sinle-and That the Central company and the
receivers did not have the right to insist by
summary proceeding like that before the court
that the stock should be Immediately and un.
COnditonallY restored to the receivers, the
court continued:
When the receivers were appointed they
found a condition existing. The stock was in
escrow to await the settlement OF controversy.
1t may be true, also. that the conditions upon
which the deposit was made are in controversy /;
and, while that controversy may not be de-
termned by arbitration, the Central can take
no more advantage of that impossibility than
the Danville. The court must determine the
controversy, if it is not otherwise adjusted :"
After stating the jurisdiction OF the court to
do this, continued: The proceeding
now before the court is not adequate
to finally settle the equities which the
other, with relation to this stock and the court
therefore, as speedily as possible, and upon
proper procedure, will determine the proper
On the twenty-saventh day of May, H NJ
Conner chairman of the board of rec ivers
presented the application which is now under
proper procedure" referred to in the fore
going extract from the opinion of the court
This appears from the language used in the
petition now before the court. That petition
also contains the following important aver
mens:
Wherefore. your petitioner now shows to the
court that the Richmond and Danve company
has not the slightest claim or shadow of right
TO said stock, and that the receivers of this
court are alone entitled to the same and that
they need the immediate possession and use
thereof for the proper conduct Of the
trust committed to them. AS heretofore
SHOWN, this stock is the property of
posted with the Central Trust Company
by the Central Railroad Company
directors to abide en- arbitration under the lease
Of the Liability OF the latter company to the
Danvle Impany for claim Of SS44.00
which represented, as the Danville
company allege, the amount OF out
penses of the Central railroa due at the time
the Danvllle company took possession under the
lease and paid by that company. There has
never been the slightest foundation for the
cam. The sixteenth article of the lease ex-
pressly provides that the lessee is to take pos
session of the Central railroad as running
and credits and balances due to it and assume
and pay all outstanding bills for current and
operating expenses due by it In point of fact
the Danville company, when it assumed posses
sion under the lease, received from said Central
railroad Company in cash and materials an
amount quite equal to said claim Of SS44 GEO.
This claim was first made by said Danvie com
pany Just before the Central and Southwestern
dividends, which were to be paid as part of
the rental of the property, were due. Directors
OF the Danvllie company to whom, as members
OF their executive mmittee, the matter was
referred, have admitted, petitioner is in
formed and believes, that the claim could not
De maintained and that the receivers ore en-
Titled tO'said stock. Inasmuch, therefore, as
the claim on account of which only was ths
STOCK deposited or impounded is palpably
u9 GUIDED, unjust and unconscionable, your
A petitioner respectfully submits to the court
mat the receivers are now entitled to the pos
SESSION of said stock without regard to any ques
Il uon OF accounting between the Central railroad
ana the Richmond and Danville companies and
Fl WIN reference to the matter Of accounting,
Il your petitioner charges that said Richmond and
DanVlle Railroad Company is indebted to the
haid Central Railroad Company in a very large
amount that IL has received in actual money as
the result of its operation of said Central rail
road very large sum in excess OF its entire dis
onTsements and payments; that said sum will
probably approximate, if it does not reach,
SlO0OOO; that said Richmond and Danville com
pany Is otherwise largely indebted TO said Cen
ual railroad Company, and upon fair &C
counting petitioner believes that the amount of
eaId Indebtedness in favor of said Central Rail
road Company against said Richmond and
tDsanVlue Railroad Company will approximate,
q 4" IL does not reach, the sum OF $2,000,000.
wherefore petitioner prays for an order di-
Iectlng that said New England and Savannah
steamship Company stock pc at once delivered
20 your petitioner, as chairman of said board
81 vi receivers. by the said Union Savings Bank
aiiQ trust Company OF Macon"
pom consideration of this application, in view
81 Ui the important and significant character OF
a AVS sworn averments, the court at once issued a
III rue nisi, calling on the Danville company TO
SOW cause on the - day of June, why the
81 application should rot be- granted 1t appear
LS 70 the court, however that upon a hearing
"a VI Inls character either party won be entitled
~ examine witnesses and submit evidence
81 S-ooFqlng to the rules in equity,
81 provided parol evidence was admissible
vie court INCORPORATED in its order q