The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-05-16

the objects of reorganization was to de-
wise some means OF paying the Central S
debts. This was an announcement, ne
said, of the company's intention TO devise
some means of providing for the payment
OF these debts.
THE CENTRAL's INSOLVENCY..
The Central railroad, he said, was ar
( insOlVent corporation and had been so for
/ months. and that this was an announce
ment that they were unable TO pay their
| debts. Hence the abSurGity of arguing
| that sufficient notice had not been given.
! Such notice, he said. would amount TO
nothing, as a declaration of insolvency is
a confession of inability to pay the debt.
The word intention in TINS contract is
! not used in slovenly fashion. 10 means
! purpose or design to pay, and an iusolvent
/ corporation cannot directly announce shat
1t has purpose to pay, as ID mag not nave
/ the money to pay. The only difference
/ between this contract aud that expressed
on bond IS that there IS q technicality
here seeming to make payments optional.
| On this technicality the defense has based
its argument. But the directors have
authorized their attorneys 10 acknowledge
service to any of these suits retUrnable 10
the May term, which was an admission Of
the Indebtedness in these certificates and
the fact that they are due.
WAS IT AN ADMIssION2
'Let me ask, said Mr.. King, ''if Mr.
Barrow admitted that contract due when
he acknowledged service for the Pullman
Car Company ?''
No, he did not; but he admitted
thereby that the case was actionable, 5"
was the reply.
Then | suppose he filed a demurrer to
the suit" said Mr. Charlton.
eve maintain. - went on Col Cara I'd
'that these contracts became due within
a reasonable time after July /, 1891, and
especially upon an admission of insOlv-
ency on the part of the corporation" He
brought numerous decisions to the proof
of this point to show that when a cred
itOr showed his inability to pay debt it
then became due and actiOnable.
He contended that the Mercantile Trust
Companys certificates, into which all
those deposited with them have been
merged, taken out April II, could not be
held not to be due. 1t was due, he said,
both principal and interest, as it repre-
sentcd those certificates which have
fallen due, and on which the interest is
also due There is nothing anomalous in
transferring and consolidating these con
tracts, he said, and it cannot be claimed
that they are not due because simply con-
sOlidated.
sIR. CHARLTON CLOSES.
Mr. Walter G. Charlton, who took up
the closing argument AZ o'clock p. m,
thought that where party accepted such
a contract he should be bound by the
terms of it, and be willing to stand by
what he had accepted
This Mercantile Trust Company might
have sued upon their certificates in the
names of the original dcpositors, but, he
said, with the knowledge that the corpO-
4
surrendered all these certificates and
agreed to accept this new certificate
which was made on April II, on which
they have no right under the Circum-
stances to ask for a Judgment.
I'VE claim that this is d scrip dividend
If it was "a money dividend authorities
show that it was due at the time issued
and if it was such a paper it is now
barred by the statuteof limitations But
it is not such paper. On the other hand
it is a scrip dividend"
He then quoted from the same authority
used by Col Garrdrd to show that it was
a scrip dividend and was properly pay
able at the option Of the Central railroad.
The certificates he held were merely
representation of the profits made by the
road and used in betUerments, and its
payment, he said, was contingent upon
the prosperity of the road after the GER
tiicates were issued.
The plaintiff is driven to the extremity
of arguing that an Acknowledgement Of
service is an admission of the maturity
Of the debt. This course was perfectly
natural, and an acknowledgements of service
doesn't mean an admission that the in
debtness is due and collectable.
Every authority the other side has
brought up refers to bills and notes, and
you see the distinction in this case, be-
cause this qualification in these Certih-
Gates takes it out of the category of notes.
IL is not, as the counsel calls it, a demand
note, They have not brought a single de-
cision to show that such a note as this
falls due when the maker becomes in
solvent
INTEREST DUE ONLY TO HOLDERS.
Further" he contended, "the interest
is due to the person only who holds the GER
tidcatC at the time the interest is due as
they stand on the books of the Central
railroad. The Central says il will not
pay it to anybody else, therefore the Mer-
camille Trust Company cannot sue for this
interest as it is not due them. They are
not properly in court.
II will call your attention, too, to the
fact that this is a gratultOus paper. 1t is
a unilatCral contract. The stOckholder
had no right to demand these dividends
They were simply given gratuitously.
Al ef surveying Une WnOIO case, sad
Mr.. Charlton in conclusion, Il feel that |
can say without extravaganza of language
that see nothing left upon the other side
but the pathos of Col. Barrow, and the
Indignation of Col, Garrard"
Judge MacDonell then took the case
under adyisement, called for the papers
and announced that he would endeavor to
have the decision ready this morning.
ANSWERED By TEE CENTRAL.