The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-13
THE STORY CONTINUED.
MR.. CRAWFORD CONTINUES TO
ARRAIGH JUDGE sPEBR.

] LlOI-LQS MOLlOus TO Dc a9afQ IN
New Orlesns-rhe Savannah and
Western Case Concluded.
| The United States court room was
! crowded to the extent Of its capacity yester-
day when the court convened, the large
number Of people, among whom were sev-
| eral ladies, having been attracted by the
| very interesting proceedings which were be-
gun on Tuesday aud continued yesterday,
The surprise aud excitement created by
the motions filed under the Rowena Clarke
/ bill by the Richmond Terminals attorney
and by the speech OF Mr.. Crawford had by
no means subsided, and from the various
rumors afoaI he was expected to
make some still stronger statements in the
continuance OF his argument. When
be arose to address the court every
body looked expectant, and every eye was
turned on the speaker. He entered at once
upon his subject, aad was listened TO with
unabating interest.
CONTINUED TO ARRAIGN THE COURT.
''In discussing that the sequestration
ordered by your honor, said Ar. era Word,
'had oeen grossly perverted neglected TO
cite decision OF Justioe Miller, in which
he alludes 70 the appointment of receivers
for railroad corporations. Judge Miller
says, IN substance, that the receiver of the
present day manages the property after his
own fashion, with the aid OF the court, bore
rowing money when he wishes aad occa-
sionally paying @ debt or two
Now they have taken q partner into this
concern In the shape Of the HOllins reor~
ganization committee, from which the road
has contracted a loan and given 1T the
thu ~ "a
The court of equity has the power to create
debt, but it must be exercised with the
greatest precRutIou. This transaction re-
fer to was utterly ex parte. 1t was entered
into by Receiver Conner, and was grossly
improper and misleading. This loan was
necessary for no purpose, so far as can be
seen. What was the real reason why the
receiver asked 20 be allowed to contract
this loan2 1t was obtained upon the petition
of the receiver, stating that the money was
needed for benehting the estate. They
also may merge and consolidate all of loaRs
and take in lieu thereof as securities the
negotiable securities of the company. The
petition also states that the money was
needed for furthering reorganization.
THE PLAN PREARRANGED.
ION July the Hollins loan and others
mature, 1t Is evidently a preRrranged day
on which the old corporation is to pass
away and the stockholders are to take up
the new corporation. l don't intend
to take any false position in regard to the
functions of reorganization committee.
They have their uses and are lawful. l am
not ready, however, to accept the plan of
Brother Lowrey. l don't believe this COM
mttee has any apostolic mission to rehabil-
ate this property, | question their philan-
throphy. Those gentlemen composing the
syndicate are entitled to commission, and
they are also entitled to a reorganization
committee; then these, too, can get up an
underwriting committee, aud to this they
can also belong, which gives them third
commission for the work they undertake.
Thus the eorganizatiOnlpropOse to help
themselves out OF the banquet OF which they
ask us TO pNrtake, 10 extent of 100 per cent.
on the face of their loan. After u piece OF
property is sold the court has no jurisdic-
tion over it whatever. The court's province
as a forum ends with the confirmation of
the sale and the delivery Of the property on
the payment of the stipulated bid. so / say
that the district judge, in attempting to do
anything for the reorganization committee,
laid down the robes OF the magistrate, aud
made the court to be guilty of a bold usurpa-
ton. 1t was evidently intended that this
loan should not be paid.
WHAT WILL TREY DOT
81 want Brother Lowrey to tell the court
what will happen on July 2 if the receiver
doesn't pay, not only the new loans, but
also the So. 400, 900 aud the 100000 obliga-
tions. Every possible avenue of redemp-
ton of this vast estate is shut off, and all is
TO be swept into the hands of the same COM
mittee that is both syndicate and reorgani-
zation committee. They are authorized by
the courts, il the bonds are not paid, to sell
out the collateral securities, both the stocks
aud bonds OF the Central Railroad Company,
and, moro unusual still, there is the provis-
ion that the reorganization committee only
has the right of their redemption within six
months. Did ever q court before make
such a contract, and for the benefit of the
property9 It was intended to destroy every
atom of minor and secondary right.
These gentlemen, If this scheme fails,
are not imperiled as they 'still have this
courts contract aud they only have to be
patient until July l comes. On July they
nre authorized to sell to themselves all OF
this hypothecated property. They get ell the
stooks and bonds of the system, every lease
hold estate it owns, or In other words. the
entire vast estate, much of which would be
mere gratuity for the miserable pittanoe
of the amount OF this loan received through
this miserable court contract.
STRONG CHARGES AGAINST THE COURT.
~ desire In behalf of majority holders to
protest against allowing any set Of creditors,
or court 10 ala them, TO accomplish such
an uncouscionabie result. 1t means to
sweep away all Interests subject to the sec
ond mortgage and all other resources. And
further, the court authorizes the expenses
Of the reorganization to be paid out OF the
pockets of those whose property ia in its
hands. Who ever before heard that q court
committed itself to plan of reorganiza-
tion before foreclosure, nay, even before
foreclosure bill has been hle1!
kbfa Nrou Cd tla
gapization plan had not seen the light. Tho
court had not been Informed that there was
any such plan. The remarkable specsa-
ole is presented of Judicial officer
who boldly sets the stamp of the courts
approval on the reorganization plan. Per-
haps he was able as a man TO give it his APP
prevail But in adv of hearing auy
party and of its publication he set the seal
of the courts approval on a contract which
the property owners had never seen until
approved
THE ADMINISTRATION A PUBLIC SCANDAL.
II dislike TO see any disruption of the
Central Railroad and Banking Company Of
Georgia. Any severance OF it should be
deprecated. 1t should be kept together.
think the entire system should be by some
means placed under the control OF the cir
cult judge and some satisfactory manager
appointed. The present aeQuestration pro-
ceydings are illegal. They have been pros
tituted. | insist il is a primal judicial duty
TO terminate these receiverships. They
have been administered so as to produce