Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1892-03-05
A Railroad Receiver Appointed.

Roun.res, an Atlanta lawyer, that he had
been appointed temporary receiver OF the
company of which he is president by Judge
Emery Speer. of the q. 8. Court. In case
be declined Col. VIM. Gordon, also OF 3d.
vannsh vas to become receiver. Gen. al.
e1ender accepted the position. According
to hs order Ct the court. he will ALLOW none
OF the assets OF tia o-untsy to pass cut OF
the State. Ris temporary receiVership ex-
tends to March IA, when motion for per-
mauent recsvsr will be heard In Macon
Unt!l then the Richmond and Danvilie
road will continue to operate the Central
and its leased road, 1t being the IL :nticn OF
the court to keap things in status quo until
1t can pass fosiiy on the question involved.
The appointment Of temporary receiver
Is the first etep toward breaking lha lease.
The receiver was directed to carry on the
| business OF the railroad properties In the
usual manner without making eny changes
| In the methods of accounts and bookkeeping
until otherwise direcied. In the meantime
the defendant, the Central Railroad enc
Banking Company Of Georgia, the Richmond
and Danvile Rairosd Company, the Kioh-
mond and West Point Terminal Com
pany, and the Georgia Pacific Railroad Com
parry we're enj oined from encumbering the
properties of the Central Railroad and Bank
| ing Company, or from. dIsposipg Of or alter-
ing the securities and aasetB and the re.
ceiyer Is directed to be very careful to
preserve the Legal status Of all the proper
! iss.
The bill was fled by Mrs. r. NJ. Clarke,
| of Chsrlett,p, stockholder, who Ia repre-.
sented by J. Lamb Perry, of Charleston, and
D. W. Rout zee. of Atlanta. It is against
The Central, Richmond and Danvlle, Geos-
ola Pacific, RschmoEd and West Point Ter
minal. Central Tfust Company end the
bosrt; of dlrsotoTe OF the Central Railroad.
Il aims to snnul the lease Of the Central
avs en- to the Richmond and DinVil'e
through tie Georgia Pacific; to epj oin the
| Cenlral Trust Company from voting $4,000
shares OF stock alleged to be illegally held
| bs IL, and - have permanent receiver ap-
| D ,lne to take charge OF the road until the
pe1t annual meeting OF the stockholders o!
| tae company, at which nesting only stock
held legally shall be voted. This action
mus OF necessity interrupt tho carrying out
of tia Olcott reorganization scheme. 1t
Is generally believed that Judge Speer
will sppolnt permanent receiver and de-
clare the lease null and vlld, as being con.
trary to tle constitution Of Georgia and the
provisions OF the common law. This Will be
| but reitsratlug recent decisions made bY
him, and eustalned by the U0ited States Su
preme Court, This action was oomplet:
urpriss TO the Celt al Railroad oficials.
The bill alleges that the purchase by the
Georgia Paoifo Company, or the Richmond
and West PoiLt Terminal Company OF 40 OOl
shares Of the stock Of the Ger t.al Railroad
and Banking Company for the purpose o.
| %ba ~ nc
! plain vic agon OF paragraph 4, sect on 2, ar
ticle of tae constitution Of the State, adopt
cd In the year 1887, which Ia as follows
1.-THE General Assembly ehall have nc
poWer to aulhorlzs any corporation O.
this State or elsewhere, or to make any
contract or agreement Whatever witt
any such corporation, which may hRvs
the effeot or ba intended to have tle
, effect to encourage monopoly, and all sucf
con;rae IS, and agreements shall be iilegs
sad void" Tho plaintiffs insist, therefore
!: tsas the contracts by which the Tsrmiua
Company got hold of the s.ock we're Vo!d
!, and that they took no ute to the same
They issis. hat the 10000 shares Of stoos
!, which the Terminal holds Ia illegally held
ald thst the voting power OF said shares o.
stock was illegally exercised, both In max.
ing the leaee OF the Central Railroad and
} Banking Company and In the election o.
the present board of directors. The bill
further charges that having control In this
!, Illegal manner OF the majority Of the stock
of t ne Central Railroad and Banking Com
pspy, the deieudsr t are consplriDg and de-
!. signing to place debt OF FIVE hundred MIL
lions cf dollars on the property By what Is
known Sd the Oicott scheme, @ debt far Ia
eycess Of the esrnlDg capacity OF the prop
critics, and which it can never pay. Ii i:
charged that tbs present board CT directors
are the creatures u the Wet Point Tsrmi-
nal Company. sId are elected by the illegal
exercise OF the voting power OF the stock
which sai6 Terminal Company COL trolls. and
that lhe plaintiff has no means OF getting
the board Of directors assembled 80 that
they may aek corporate cotton to correct The
wrongs complained OF and tle next meeting
OF stockholders where the question could be
raised will not convene I'll next year. In
the interval the properties will bs ruined by
The carrying cut OF the said Oioott scheme
which the bill charges oaa have no effect
whetsve save to wreck all the interests OF
the stockholders. The plaintiffs Insist,
therefore, that they have no remedy cave
By an appeal to court OF equity to en1 DIN
the threatened injury and set aside tie IL
l A~,SAA
m ade 1t possible.
4 The New York Tribune says: ut was es-
serted yesterday that there had teau diff
Guilty In completing the guarantee eyndi-
ctts which Is TO underwrite the oonsolda.
ton and reorganization plan Of the Rlch.
mond Terminal system. Ths names OF sev-
sral prominent bsnkipg-Ioases we're mee.
toned as among those which had refua.d 10
enter the syndicate. F. P. Oloott, president
OF the Central Trust Company, and chair
man OF the reorgaulzsti committee, de.
MED that there had been any uniayorable
developments regarding the plan. He said
that the work OF forming the guarantee syn.
dicats had not really been begun, and that
no one had been approached as yet On the
subject. Mr.. Olco.t said that the plan
would not be out before next week. and he
was not sure on what day 1t would be pub
lished."
Archbishop Ireland.
a dispatch from Bone says sensation
has been cree tsd In church circles by the