The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-26
THE EXAMINATION ENDED.
The Terminal Officials Say They Are
Satisfied With Its Results.

Southwestern Meeting De-
benture Suit in the City Court Comes
in for a Share of the Discussion,
Col. Garrard's Cross-examination OF
Mr.. Comer-Trying TO Show the
Danville Responsible for the Speyer
Contract - What the Terminal
Officials Say.
The Richmond Terminal officials con-
tinued to represent their AZ 600 shares of
.disfranchised Central stock in the con-
tinuation of the proceedings begun Mon
day. which constituted an examination of
Receiver Conner before Master in Chan
Gerry George w. Owens.
As stated in yesterdays MORNING News
the examination wasone in regard to facts
andnothing of a sensational nature was de-
veloped, as some had before anticipated
The proceedings, however, were interest
ing, as they gave a history and an under
standing Of the present status of the Cen
trails property and the liabilities which
have carried it past the solvent limit
Attorney Crawford took up his inter
rOgations yesterday at II o'clock, where
he left off Monday afternoon, dealing
especially with the facts in connection
with the 5000, 600 loan.
THE PROCEEDINGS BEGIN.
II was developed at the beginning that
the Indebtedness to the KnickerbOcker
Trust Company was paid partly with
100000 borrowed from the Southern
Bank and with S25 600 out of the Central's
earnings. Interest had been stopped on
all securities, except or, the three classes
mentioned, paid out of the 100000 loan
This contract was made by Mr. Conner
and the attorneys of both parties to the
contract. There was nothing in the pc
tition to the court to specify how the col
lateral should be sold in case of default,
but that was settled in the making of the
contract in New York. The security was
10 stand for the entire syndicate loan, in
Guiding that of the Mercantile Trust
Company and the $780, 900 loan.
You say asked Mr.. Crawford, "that
that agreement was not in your original
petition nor in the order of court, author
izing the contract 2"
Il talked very freely with Judge Speer.n
replied Mr.. Conner, land told him ! would
make no contract that would endanger
the company. He understood the matter
thoroughly
1t was brought out by Mr. Crawford
that there was no notice given to the par
ties to the original Rowena Clarke bill of
the contract before it was made Mr.
Conner had no notice as to how
many members of the Hollins syndicate
had assented to the contract, and did not
know, as was stated by Mr. Crawford. that
several members of the syndicate knew
nothing of the contract until some time
after it had been made.
RELYING on REORGANIZATION.
"What preparation have YOU made to
pay these three loans due July !. amount
ing to about S5100,00O?" Mr.. Crawford
asked
Il haven't made any," was the reply.
How do you expect them to be paid"
said Mr. Crawford.
by the new securities which are to be
issued 80 Mr. Conner replied.
Mr. Conner didn't think the road would
be able to pay even the 5000. 900 out of
the earnings, and said that default was
expected on July /, and that the only
hope and only arrangement was in the
plan of reorganization. The company has
twelve months to redeem these securities
in case the plan fails
81 see no possibility" said Mr. Conner,
''for the property TO earn the money to
pay that debt except through the secur-
tiles to be issued under the reorganization
plan, and in case it fails we have twelve
months to redeem the securities and
formulate another plan. The way the
$500, 900 was expected to aid the plan was
by the placing of that amount in the
hands of people who would aid the reor-
ganization and who would take up the in
debteduess and guarantee that it be re-
funded in the plan"
MR.. HoLLINs' SECURITIES
HAS Mr.. Hollins deposited his securi-
ties under the reorganization plan of
which he is chairman" asked Mr.. Craw-
ford
Il couldn't tell you; l don't know, - was
Mr.. Corners reply.
Il want also to include in the CORE
spondence | asked for between Yourself
and Hollins & Co. your correspondence
with Mr. Hollins, chairman, which you
will please file with your deposition"
said Mr.. Crawford
you have been an earnest advocate of
the reorganization plan and advised its
acceptance and deposit Of securities, have
you not?" Mr. Crawford asked
II have, ~ was the reply.
II was shown that Mr.. Conner went to
New York to meet the committee to
confer with them on the 800 600 to be
used on May TO pay the collateral trust
coupons. 1t was settled that this was to
come out of the 5000 900 loan.
THE SOUTHWESTERN MEETING.
"You attended the southwestern meeting
to present the proxy of the Mercantile
Trust Company, did you not?" MIR. Craw-
ford asked
That proxy was among others, said
Mr. Conner, but | had proxies repre-
Senting %, 600 shares or more. That was
for only 10000. / voted more shares than
anybody else, ! believe"
MIR. Conner was asked about the amend
ment to the plan made at the request of
the Southwestern committee He had
voted the 1000 shares of the South
western belonging to the Central. he said,
under general order from the court He
had sent one or two statements of earn
lngs and expenses TO the reorganization
committee.
Was any part of the $500, 600 loan appli-
cable teorsanizatione expenses under con
traCtl' said Mr.. Crawford.
There was none,n said Mr.. Conner.
''These expenses on applications were
made lien on these securities. | have
seen no order in regard to the certificates
of Indebtedness. but understand one was
issued disallOwing the debt. have
placed nearly all the securities in the re-
organization plan. An order was signed
to-day authorizing the depositing of the
Southwestern stock. The committee had
nothing to do with the foreclosure under
the tripartite mortgage, but it was de-
clded that the committee would buy in
the property for the new company"
THE DEBESTURE SUIT