The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-06-30

! AlNLleu 10 the payment OF the interest on
the bonded indebtedness OF that road.
/ have examined these orders, putting this
I road into the hands Of the receiver. and
there is absolutely no such provision in
/ them
MAY BE FREE.IF THEY WISH.
Justice jackson then reviewed the gen
| eral proceedings by which the property
was brought into court, and put into the
/ hands Of the court.
In appointing Mr.. Conner receiver, "
/ said Justice Jackson, she was authorized
by the court after defraying all operating
| expenses TO pay out of other moneys rent
| ais or fixed charges due leased lines.
/ That's all. There was no election TO take
/ this property and keepit Instead of being
/ q source of revenue they have been a
/ source Of dead expense to this property.
/ In view of that order we now pass an or
| der that we will turn over to the South
western, the Augusta and Savannah, the
! Mobile and Girard, and the Milledgeville
/ and Eastern, their respective properties.
- We will turn over to you those prop
/ critics, or we will let them remain in the
| hands of the receiver and be operated by
| the Central, but we will give to you only
! the net earnings made on those lines up
| to the contract rental.
/ ''Ihis need not apply to the Georgia
railroad, for reasons best known to the
court. The court will direct the receiver
to furnish each of these corporations with
a copy of that order, and they must make
their election within thirty days.
| Mr.. Turner wanted the Southwestern
sold.
Justice Jackson told him he had claim
on it, which was all right.
Il simply gave them the right to take
back their property if they so desired, "
he said.
Mai. Bacon held that the property was
not in the hands of the receiver, and never
had been. The bill praying for a re-
ceiver had been dismissed so far as the
Southwestern was concerned. The in
come from mortgaged property is never
taken possession of by mortgage, unless
the property is insolvent
APPEALS FORM THE OTHER LINES
Mr.. Miller said he would like to have
an order directing the payment of the
rental of the Augusta and Savannah
railroad under the order passed by the
court Their property, he said had
earned more than the rental amounted to.
"You may have a order referring it to
a special master, said the court, ''as to
what has been earned and what paid out.
If you find their earnings not as you state
them you will be taxed with the costs of
the investigation"
Mr.. Clifford Anderson said there was
mand the Eatonton branch upon non-pay-
ment of rental.
''The court desires TO give you the same
opportunity as the other roads You
must make your selection within 80 days"
replied Justice Jackson.
Mr.. Peabody appealed to the court for
the rental for the Mobile and Girard.
Mr.. Peabody" said Justice Jackson
"you have received more already than
you have been entitled to under the cir
cumstances, and we stand under the order
of the court as to these leasehold interests.
We are going to give you the option to
terminate your lease or not as you see
fit"
Mr. Kent wanted the Mobile and Girard
railroad turned over to the receiver of
the state court by the receiver of this
court.
Capt. Cunningham said that that
question had come up before Judge Bruce
and he had refused to grant it,
"The motion is Denied" said Justice
jackson.
THE QUESTION OF THE DAY.
Then came up the great question of
day that of Mr.. Coner's removal.
As Mr. Pat Colhoun arose to address
the court all eyes were centered on him,
and for few brief hours he was the OBJ
served of all observers.
~ was NA RtNbG0 btAdt lAC NOulQ AAldhb q
strong attack upon the receiver, and every
body thought he had some sensational
views that he was going to explode with
regard to what he has seen fit to term the
mismanagement of the receiver.
The substantial facts, if they can be
called So upon which Mr.. Calhoun's argu-
ment was based, were practically all
given in the reports of the Investigations
given in the MORNING NEWS, which he
Ha1afad narA a Ct
sational nor any evidences of mismanage-
ment were found in them at the time,
and on careful consideration the court
also failed to find those evidences. Mr..
Calhoun said
''YVe feel that the circumstances appeal
peculiarly to the consciousness of the
court for the administration of these funds
Our clients seek no personal advantage.
They have nothing to ask from this court
but that this property shall be admins
tered by capable railroad man whose
appointment would at once tend to re-
store confidence among the security hol-
ders.
SOME CHARITABLE CRITICISMS.
''We desire to criticise in the most char
table way the administration of these
funds by the present receiver. l recog-
| ni2e that this receiver was confronted by a
great complication at the outset. He
1 IA
holder who had always voted for direc-
tors for several years, and received her
! dividends
GIVE desire to demonstrate that this re-
ceiver has not, efficiently, performed the
duties imposed upon him"
ARE LIABLE TO MISTAKES
"What is your proposition, Mr. Cal
! houn, asked Justice Jackson. 1--WE can't
| correct the mistakes which may have
been made. We are all liable to make
mistakes
My motion is for the removal of the
present receiver and the appointment of a
new receiver under the bin of the Farm
ers' Loan and Trust Company" said MIR.
| Calhoun.
His actions have been calculated TO
depress the property We want to show
what it is capable of doing between now
and January. A plan of reorganization is
| based upon what property is doing and
| not what it has done. It is for that rea-
| son | WAS undertaking to show what the
conduct OF this receiver has been.
1--WE desire to show the misleading
statements he has made and the special
! instances of mismanageTnen which must
appeal to the consciousness of any chan
| cellor.
Before taking up his statements de-
| sire to show the conrt what his actions
were II is shown that soon after
his appointment he was in New York dis
GUESSING the reorganization of this prop
erty. He applied to the court for the