The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-05-06
HOWPARSONS COT THE ROAD
Sensational Exceptions TO the Coast
Line Masters Report.

/ Messrs. Richards and Leaken File an
| Intervention in the Superior Court
| Charging Serious Things to the New
York Millionaire Mortgage Of
the Road Alleged to Be Invalid.
Further Interventions in Behalf Of
the Minority Stockholders to Be
Filed To-day.
The Coast Line railroad which. was
sold several months ago under order of
/ the superior court, and whose troubles it
were supposed to be settled, is again in
the courts.
The attorneys for Lucy Green, Messrs.
r.. r. Richards and w II. Leaken, who
obtained a Judgment against the road in
the city court for 81 $50 in August, 1880,
last night filed in the superior court
sensational Intervention to the findings of
Master John Sullivan Schley They
claim that the first and second mortgages
are invalid because under the charter
Of the Coast Line it was only
authorized to issue bonds for
$25 900 and had no authority to issue
mortgages. The second mortgage bonds
are also claimed to be invalid because
they were issued under an act of the leg
islature which granted power to the
Coast Line to consolidate with the Savan-
nah, Seaboard and SSidaway railroad in
1876. No consolidation took place, but
the Coast Line issued S32, 900 worth of
bonds for funding its floating indebted
ness.
Mr.. George Parsons, alleged, bought
or obtained control of all these bonds with
the coupons although it is said that his
counsel, CX-GoV. Chamberlain, advised
him that they were invalid. Acting upon
this advice Mr.. Parsons gave
note as president of the Coast
Line, without authority of its
directors, for $4,000, which included
the bonds and coupons, 10 a friend of his
in New York named Goodby. Although
it is claimed the road owed Goodby moth
ing, GOodby sued this note against the
Coast Line and got judgment
1t is also charged that Mr.. Parsons APP
propriatcd, or secured, in his own name,
the title to the depot lots, both in Savan-
nah and at Thunderbolt by buying up
notes for which the company was liable
and for which these lots were held as col
lateral by the indorsers Of the notes Mr.
Parsons next sued these notes against the
Coast Line.
1t is furthor claimed that Mr.. Parsons
board OF directors to vote him in 1888
back salary at the rate of 1000 per an
mum for eight years, while he charged
interest on all money loaned to the road
during the same time He then sued the
railroad for the $4,000 and got
Judgment. He also sued for
over $1,000 for rent of the depot
lots, for which he was successful in get
ting Judgment as well, though it is claimed
in the exceptions that under the previous
transactions, these lots became the prop
crty of the railroad.
When the depot buildings were burned
in lSSe, it is alleged Mr.. Parsons had
voted to himself over $4,000 of the nsur-
ance money, for which, the exceptions
say, he never gave credit to the road, but
after the fire put up new buildings which
he called his own.
In February, 1890, when the road was
admitted to be insOlvent, Mr. Parsons
claimed to have purchased 900 worth
OF new iron, taking trust lien for this
amount against the road, which was done
without any authority of tho directors or
without consulting anybody
Mr. Parsons also built the Sand Fly
branch between Thunderbolt and Sand
Fly, and while the evidence shows the
Coast Line was interested, Mr.. Parsons
claims it as his own, though he fails to
account for where the iron and other ma
JtIldl came from.
Master Schley, in his report, SAYS Mr..
Parsons mixed his personal accounts with
the Coast Line to an extent impossible to
say. for the books of the company were so
badly kept that correct statement could
not be made as to the affairs of the road
or to give a correct account of the trans
actions between Mr.. Parsons and the
Coast Line.
Another charge in the intervention is
that the suits OF Bemeant for SIS 600 and
Goodby for $4,000 were collusive and
fraudulent against the creditors, and that
Mr.. Parsons is accountable for and should
be made to pay into the court sums aggre-
eating 100000, such as surplus moneys UNI
accounted for, and1 moneys sent Mr..
Parsons to New York.
Finally the Intervention claims that the
road could have been operated at a profit,
as while in the hands of Receiver John
ston his reports show large profit, although
the road was put in almost a new con
dition by order of the court.
Charlton, Mackall g. Anderson, repre-
senting the minority stockholders. will
also intervene against Master Schley's re-
port to-day, and the outlook for sensa-
tional developments in the case are very
bright 1t will be tried at the June term
of the superior court