The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-28
WILL DEFEND THE SUIT.
The Central InStTuCtS It's Attorneys
TO Take Such Steps.

A Resolution to That Effect Passed by
the Directors Yesterday - Other
Stockholders Can Take Part in the
Defense-M Mr.. John S. Tilney's Urgent
Peculiar Phases of the Suit.
The board of directors Of the Central
railroad held a meeting in MIR Conner S
office yesterday. the object of the confer
ence being to decide what steps 10 take in
regard to the suit of the Mercantile Trust
Company against the road now pending
in the city court.
The directors were all present except
Messrs. Swami and Howell and theattor-
neys for the road appeared before the
board Under the circumstances the
meeting was necessarily a long one The
suit has been called a friendly one. and in
his testimony before themaster in chan
Gerry, Mr.. Conner said he understood
it to be in the interests Of
the reorganization plan which has been
indorsed by the board Of directors.
Mr.. TILNEY's PROPOSITION.
A letter from Mr.. John s Tilney of
Orange. n. j., who owns 500 shares of
Central stock, was read at the meeting.
1t requested the directors to take proper
steps TO defend the suit. and asked i'm the
event of their failure to do so that he be
allowed to defend it in the name of the
company, stating that i'm such case he
would stand all expenses Of the defense.
This a stakeholder has a perfect right
to do.
In the event company decides not to
defend a suit against it, any of the stock
holders has a right to defend il
IN the company's name if he so
desires. Other letters from stockholders
TO the same effect were read before the
board, urging them to have the suit de
Tended
THE ATTORSETs INSTRUCTED.
After much discussion pro and con a
resolution was adopted by the directors
instructing the roads attorneys to take
all proper steps to defend the suit, which
is brought by the Mercantile Trust Com
pany DIS plaintiff, asking for a Judgment
for nearly $1,000 coo on the certificates of
Indebtedness deposited with them The
resolution also provides that amy stock
holder in the road who desired to come in
and take part in the defense of the suit
can do so at his own expense.
Thus it seems that the suit which has
been pronounced in the interest of re-
organization which has been indorsed
will be defended i'm proper legal manner
10y the board. The resolution probably
contains some loophole of escape from
this seemingly embarrassing situation,
though just what it is is not known pre-
Cisely The statement that the attorneys
for the reorganization committee APP
pearcd before the meeting is a mistake
A PECULIAR SUIT.
The suit mentioned, which is 10 come
up IN the city court next Monday is a
peculiar one under some circumstances.
il nIgtPg tbAga bD hold hath l,h,,tt
ures and stock in the position Of suing for
Judgment on the certificates of indebt-
edness against themselves as stockhold-
ers. A person might hold one debentwe
and ten shares of stock, in which case he
Is asking for a Judgment against the
stock simply to satisfy that one certif-
cate of Indebtedness The certificates
have been deposited in trust with the
Mercantile Trust Company, who are the
Ol9iDtiffg in tho t.aEa