The morning news., 1893-06-27

bonds. ID had the right 70 place its guar
antee upon them, the court thought ans
also that the parties had ample opportu
nifty 10 consider anything in the way o
the transaction
No stockholder OF the Central has
ever tried TO set aside that transaction
has hel" asked Justice Jackson.
I'VE are trying 10 do it now, said MIR
Erwin. "The burden Of proof in this cast
is first to show ultra wires, and then the
burden Of proof rests on him who objects
to this plea"
Justice Jackson decided that the pres
ent holders of the bonds stand upon thf
same footing as the original purchasers OF
them, as a guarantee was in the nature OF
making over a negotiable paper.
Mr.. Erwin then went on 10 show that
there was no equity in the bill. The
court would so administer this property
if the guarantee is valid as 70 make the
holders foreclose on the makers of the
bonds.
TO SELL THE ROAD.
Just here Justice jackson madea state
ment, that indicated pretty clearly the
view of the court upon the question of the
sale of the road. The court said, it in
| tended that the road should be sold IN a
manner that it will bring the greatest
amount for the benefit Of creditors of the
! property and all concerned. The Justice
said
The disposition of the court and the
determination, ] may say, of the court is
TO expose this property, when it is ex-
posed for sale in way TO make it real
| ize the utmost cent possible. When it
comes to sale it will be sold as the Wa
bash was sold. 1t will be sold in a lump
and then it will be sold in detail, If fneces-
sary down to spike by spike and rail by
| rail of every portion of the line, and the
court will adopt that sale in the end
which realizes the most money"
The evidence will show said Mr.. Err
| win THAT the Danville was in control of
the Central and that there could be no
| Joint contract between them under the cir
| dumstances and against the public policy
! of the state, and we propose to show on
that point that the contract is void"
MR.. CALHoUN's BRIEF ARGUMENT.
Mr. Calhoun then addressed the court,
making a brief argument of fourteen
minutes duration.
"Mr. Calhoun" said Justice Jackson,
''yOu will first take up the question of the
Endorsement of the Central on the Chatta-
nooga, Rome and Columbus bondsn
Mr. Calhoun began by saying that that
question would necessarily include dis
cussion of the Savannah and Western
bonds as well.
1--WE feel" said he, that the law that
governs all three of these transactions is
clear, distinct and we'll settled, and there
fore we will not feel it to be our duty to
tax your honors with readings from decis-
IONS
"F'irst In regard to the Savannah and
Western: The record shows that that
was a corporation chartered under the
laws of this state, of which the Central
Railroad and Banking Company of Geo
rgia, is the sole stockholder. Nowhere in
the record is the control and own
ership of that stock attacked. In
that condition, the Central Railroad and
Banking Company advanced largely to
the Savannah and Western railroad
moneys for the purpose of constructing
their line and equipping it. In that way
the Savannah and Western became large
ly indebted to the Central railroad and
Banking Company of Georgia. 1t created
its consolidated mortgage bonds, which
are also not contested in any form. 1t
took these consolidated mortgage bonds
in payment of part of the advances
which it had made for the actual con-
struction and equipment of the road"
Mr.. Calhoun then read a resolution
authorizing the president and cashier of
the Central Railroad and Banking Com
pany of Georgia to indorse the guarantee
of the company upon these bonds.
After that resolution" he continued,
"the Savannah and Western Railroad
Company, as shown by the evidence and
the record, turned over to the Central
Railroad and Banking Company of Geor-
gia, 81, ,155, 600 worth of bonds On all of
those bonds the Central railroad has
placed its guarantee, In this case the
record shows that the Savannah
and Western railroad took up
certain minor corporations, among
which was the Savannah, Griffin and
A III Ia ,I.t 4. !
for many years operated by the Central
Railroad andBanking Company ofGeorgia
The Savannah and Western carrying out
the directions of the Central Railroad and
Banking Company of Georgia, desired to
acquire the Chattanooga, Rome & Colm-
bus road extending from Savannah to
Chattanooga. In that condition the Cen
trail railroad made contract with the
Rome and CarrolltOn Construction Com
pany that was owner of the income bonds
and stocks of the Chattanooga, Rome and
Columbus, and all of these appear clearly
in the record, by which it undertook to
buy all of those bondsIof the Chattanooga,
Rome and Columbus railroad for certain
Savannah and Western bonds which it
owned at the time.
SIMON BORG Il co. TRANSFERRED THEIR
BONDS.
''It is in the record and admitted that
tne parJleS, simon Borg ana OJnerS, were
the owners of the Chattanooga, Rome
and Columbus bonds, some of them first
mortgage bonds. They went forward in
good faith, transferred their Chatta-
nOoga, Rome and Columbus bonds and
stock to the Central Railroad and Bank
ing Company of Georgia; at the request
of the Central Railroad and Banking
Company of Georgia, made a deed
of the Chattanooga, Rome and Colum-
bus to the Savannah and Western road.
Now in consideration of that control the
Central Railroad and Banking
Company of Georgia, agreed as
part of the purchase of the
| income bonds and stocks of the q. r. &
c. road and as part of the consideration
| for a deed of that property, and it's abso-
lutte merging and consolidation with the
| Savannah and Western road, to put it's
| guarantee upon the first mortgage
| bonds of the G. r. and G. road.
THAT brings US to the Macon and Nor
thern. What is that transaction as
! shown by the record2 AS early as the
| 10Th of December, 1890 the president of
| the Central Railroad and Banking Com
! pany of Georgia submitted the
| proposition of the Central, which
which had no connection whatever with
the Richmond and Danville Railroad
| Company at that time, to a bondholders'
committee of the Covington and Macon
railroad, which is predecessor of the
Macon and Northern Railroad