The times. [volume] (Richmond, Va.) 1890-1903, 1893-04-22
SENSATIONAL CHARGES
IN THE PAPERS FILED IN THE
GEOKGIA CENTRAL SUIT.
Justice jackson Continues the Stay Of Fro
cesdinEs, and the Hearing ofthe Case
is Set for May I'd.


hearing OF the order 20 show cause In the
case OF the Farmers Loan and Trust
Company against the Georgia Central
Railroad and Banking Company. on the
petition Of Alexander Brown and others
for stay of proceedings OF the foreclosure
suit on the tripartlte bonds coming up
for hearing in the Supreme Court yester-
day, the counsel presenting the Hollins
plan Of reorganization requested an adj
journment, which was granted. 10 May
I'd. but Justice Jackson continued the stay
OF proceedings till further hearing.
In the papers that were filed some
rather sensational charges were made.
Senator NJ. &. Butler Patrick Calhoun.
OF Atlanta, and Leopold Wallach, Of New
York represented the petitioners. and j.
Hubley Ashley the Holins committee. At
the same time Henry Crawford. in behalf
of the Richmond ard West Point Ter
minal Railway and Warehouse Company,
| presented a petition In the Rowena NJ.
Clark suit, setting forth the appointments
! Of the receiver and other proceedings In
| this and collateral actions. and among
other things that on January lO lS3, the
Hollns syndicate and the Mercantile
Trust Company formulated plan OF
J reorganization with power to pay fts
members compensation for services coun-
! sci fees ETC.; that contcmporaneous with
the adoption of such plan II. II. Conner,
the receiver. filed in the court January
10th his petition that there was impera-
tive need to borrow for immediate use not
less than 100000 nor more than $l.0OO,OOo.
and praying authority to effect this loan
for the Hollins syndicate. on the same
day. II was claimed without notice or
I tkar ha
an order authorizing the receiver
TO effect this loan that on January 18th
the receiver entered into contract with
the Holins syndicate and the Mercan-
tile Trust Company. recittng that he had
borrowed 100000 payable July |, 1893, ana
pledged. therefor, substantially all the
stocks bonds, etc, Of the Central Rail
road Company not only 10 repay the loan
made. but as q further security Tor
So. $50. .2O6 due July I. lS93 to the Hollins
syndicate and sos O63 due the same date
to the Mercantile Trust Company ana
that he had also allowed them 10 be used
as a fund to pay the charges ana ex-
penses Of tf1e reorganization scheme.
1t is further stated i'm the petition that
on the same day the Hollins plan OF re-
organization was first made public by
general advertisement n was declared
that the same had received the approval
OF the receiver; that on January zsth.
Conner as receiver reported lne tNtchti't
of the contract, and Judge Emory Speer
entered an order approving the act.
Copies of the petition, contract. report
and orders Of approval were filed yester-
day before Judge Jackson. Among other
things II is claimed in the petition by
the Richmond, West Point and Terminal
Company that Judge Speer had no juris-
diction to authorize the receiver 10 enter
| into the contract: that the orders were
| al Ixy lta showing made and
should he vacated; that the court had no
Jurisdiction 20 commit itself receiver,
10 pledge substantially all the corporate
? assets to the furtherance OF a plan OF
3 REORGANIZATION, or 10 decree that the
| charges and expenses incurred by the
promoters OF such scheme should be
charge upon the corporate assets.
There also appears charge that the
recital I'm the receivers petition that
/ such proposed loan was OF imperative
necessity to the trust estate and tc
4 assist in maintaining the autonomy ol
the system" were grossly misleading
and untrue. The petitioner also says
( that If he Is permitted to take the tes
timony Of the receiver and his account
ants for use upon the hearing or thl'
q application, he will be able TO fully
. nroye that not a dollar OF the s60o,Oc
was OF imperative necessity or was use'
10 maintain the autonomy Of the system
> but that at least two-thlrds OF II wa
> used TO effect a renewal OF the outstand
ing loans TO members OF the syndicat
. and others having certain bonds ant
> stocks as collateral. and TO paw claim
and expenses OF the reorganization com
> mttee. and that the remainder was u
" pay off certain car trust ana receiver
. obligations.
e Judge Jackson has granted an order
!. IN he set down for hearing May "a. re
straining the receiver from doing an
!, act in execution Of the contract OF Jan
;, nary 10Th. and directing forthwith SCI
vice OF the order on the receiver ~.
/, Hollins & CO.. tho Mercantile Trust Com,
:, pany and the solicitor OF the complainant