The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-01-17
ANOTHER CENTRAL SUIT.
1T Is BROUGHT IN ALABAMA BY
BISHOP WEED OF FLORIDA

trails Receiver-The Bill Alleges q
Violation of the State Constitution
on the Part OF the Central-The AL.
Legations, Charges aud Prayer of
the Bill IN Brief-The Case to Be
Heard Feb. IA.
Suit was filed yesterday before Judge
Bruce in tho circuit court OF the United
States for the Middle district of Alabama
by Charlton, Mackan & Anderson, attor-
neys for Bishop Edwin G. Weed of Florida,
who lie bondholder of the Montgomery
and Eufaula Railway Company, against
the Montgomery and Eufaula, the Central
Railroad and Banking Company of Georgia,
the Southwestern Railroad of Georgia and
the Farmers Loan aud Trust Company of
New York and H. N. Conner.
| The bill sets forth that the Central Rail-
road and Banking Company OF Georgia
controls the Montgomery and Eufaula Rail
way Company by alleged ownership of its
entire capital stock; that the Southwestern
Railroad Of Georgia ia leased and operated
by the Central Railroad and Banking Com
pany OF Georgia and that the Farmers
Loan and Trust Company is the trustee for
the issue Of bonds Of the Montgomery and
Eufaula Of June H. 1879. to the amount
| OF s.. 100000; that the Montgomery and
Eutaula was defaulted OF the coupons of
bonds due Jan. l. 1898; that on March 8
1892, when the bill OF Mrs. Roweua M.
Clarke was filed against the Central railroad
the Richmond and Danyille railroad and
| others. assailing the validity of the alleged
lease under which the Richmond and Dam
vile had been operating the Central, and
also assailing the legality of the control
which the Richmond and West Point
Terminal had exercised over the Central by
reason OF its ownership OF block OF AZ, 100
shares, and praying for the appointment of
| receiver, etc. the Central Railroad and
Banking Company of Georgia vigorously
| resisted the application for receiver on the
theory that said company was perfectly
solvent and was in every way able
| TO take care of itself That upon the hear
ing OF the application the directors OF the
Central Railroad and Banking Company
were appointed as receivers.
July 4, 1892, it is alleged the Central
Railroad Company exhibited it's bill in the
natute OF an Intervention in the bill of
| Rowena III. Clarke. IN which after review
| ing the condition OF the railroad and IT'S
| properties it admits that IL was then in an
| embarrassed financial condition and had
been compelled on July to default on the
tripartite bonds and the certificates of in
| debtedness, and is prays the court to ap-
| point a receiver to take charge of the said
Central railroad and its auxiliary and con-
trolled properties. IL gives as one OF It's
main reasons for asking the appointment of
| a receiver on its own behalf
that, while 10 was insolvent, in the sense
| that it was unable to meet its maturing OBJ
| legations, yet il believed that IL the integ-
| rity OF its system was maintained and It's
properties and Interests conserved it could
be re-establlshed upon sound basis and
restored to prosperous conditions.
1t is alleged that July H. 1892, the Mont
gomery and Eufaula fled its separate
answer to the bill of the Central railroad
| aud admitted that the Central was the
| owner OK all Of It's capital stock and oper-
| ated the Montgomery and Eufaula road as
| part OF its system, accounting to it's stock
holders for its earnings and providing for
| Its obligations as they matured
The Farmers Loan and Trust Company
also filed its separate answer to the bill OF
| tine central Railroad Company, in which.
| while In perfunctory manner is denies the
| jurisdiction of the court and protests
| against the action Of the Central. it fails to
| interpose the proper aud fundamental OBJ
| 1sctions to the granting Of the prayers Of
| said bill, and as FAR as the orator is advised,
| the loan and trust company gave no notice
/ OF this bill to the holders Of said bonds. for
whom 1t was the trustee; nor did it in any
| manner attempt to obtain the consent Of
4 buo bOnuuOiO0Ib LOT suCn hCblOQ.
Mr.. CoMER's APPOINTMENT.
The bill further shows that at the hearing
| Of the bill of complaint it was ordered thai
II. Nj. Conner should be appointed receiver
/ Of the Central railroad and of it's auxiliary
aud appendant corporations, among which
| Ia the Montgomery and Eufaua railway.
and the order provides that 20 the end that
the integrity OF the Central system might
| he maintained the receiver is authorized to
mn " ont Af fha v1atA eI,.
| other fixed charges accruing TO other com
psnies or resulting from the use and opera
rion of their lines as part of
| its system, and that among the
| fixed charges 30 referred to Is the interest
| on the bonds Of the Montgomery and
Eufaula railway Company.
A CHARaE OF CoLLUs1oN.
| The bill charges that the Central Rail-
road and Banking Company and the Mont
| gomery and Eufaula Railway COMPANY
have colluded for the purpose OF debarring
| the complainant and those of his class Of
| creditors OF the last named company from
| exercising the usual protection afforded by
| resort to the remedies of the common Law
| by causing the last named company to be
| placed in the hands OF receiver appointed
| by the federal court for the Southern
district OF Georgia for the first named COM
| pany at its instance and because OF its
1 avowed insolvency; that there was not, at
| the time of the receivership, nor had there
been prior thereto, any suggestion OK in
solvency on the part of the Montgomery
and Eufsula. but upon the con-
| trary its bonds were regarded
as a safe investment, basel not only
on the intrinsic value OF the road and its
ability as au independent corporation 20
protect its bondholders. but in the ultimate
liquidation of its bonds by the creation of
sinking fund which had been regularly
contributed to during the running of the
bonds. The orator elbows that the Central
Is q guarentor on the bonds and besides ss-
curing all the profits rising out of the
operation Of the Montgomery and Eufaula
company, became the custodian Of It's
sinking fund, amounting at the present
time TO upward of $3.50 900, which sum is
in great peril, IL it has nos been already
swept away by the waste aud mismanage-
ment of the Central Railroad and Banking
| Company OF Georgia.
The bill further charges thas the action of
the Central in causing the Mont gomerv and
Eutauls to be placed 10 the hands of a re.
ceiyer was without reference to
| the interests OF complainant and cred
| itors of his class, and was
solely in the interest of the Central Railroad
Company, and against the Montgomery aud
Eufaula.
FIXED CHARGES sHoTIn re NIT