The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-26

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/ that certificate of Indebtedness issued
| to the Mercantile Trust Company" said
/ Mr. Crawford
1T was signed several days before the
| 18th, was the reply. Il had notice that
this certificate would be taken out for all
! those deposited under the plan. ! was
| informed that the Mercantile Trust Com
| pauy would convert all Of the certificates
! into one certificate
WILL he DEFEND THE sUITl
"You have been requested to defend
! that suit, have you nOtI' Mr. Crawford
asked.
Yes, I received a letter this morning, -
was the reply. Il presume that it was
| brought in the interest of the reOrganiza-
ton. 1t will rest with the attorneys and
the directors as TO whether ! defend that
suit Denmark x Adams are the attor-
neys for two Of the plaintiffs in the suit
/ intend to call a meeting of the board
and lay the suit before them and find
what they intend to do
1t was stated that unless some defense
was made Judgment would be taken on
May !, as the appearance term is same as
trial term
Then, said Mr. Crawford, 'there is
likely TO be judgment rendered in favor
of the Mercantile Trust Company on May
!, unless there is a contest made" and
Col Garrard then cross-examined MIR.
Conner, representing the Hollins reorgani-
cation committee
THE r. AND D. PAY ROLLS.
It was shown that there was an order
issued to pay the pay rolls of
Richmond and Danville railroad
up to March !, 1892, amounting
TO 5000 O0O which was paid out of earn
ings Of the Central as fast as they could
be gotten up, The Central Trust Com
pany some time in 1888, became the owner
of about 10000 shares Of stock.
My expectation was in March," said
Mr.. Conner, that the property would
soon be turned back to it's stockholders. [
investigated the financial condition of the
company to see what payments had been
made and what were necessary. l stated
to Mr.. Oakman that l hoped that the
affairs Of the road could be Strengthened
up without litigation. When asked to do
so later the Terminal people declined to
surrender tho New England and Savan-
nah steamship stock, stating that the
Central was insolvent, and the Richmond
and Danville was insolvent also.
THE BILL AGAINST THE X. AND d.
Mr. Conner then stated that he had filed
a bill against the Richmond and Danville
for about S2500,0O0 due the Central, and
he either wanted the money or security
for it. The Richmond and Danville was
put in the hands of a receiver before that
suit came on. The contract with Speyer
& Co. was made while the Central was
being operated by the Richmond and
Danville road
The proceedings adjourned at this point
until o'clock p. m.
When the proceedings were taken up at
O'Clock p. m Col. Garrard continued his
cross-eXaminatiOn, beginning with the
commissions of Mr. Calhoun and others
for negotiating the Speyer loan, for which
claims are now pending.
In case there was any default in the
Speyer contract ii was shown that the
whole loan became due and that Speyer
4 Co. had a preferential right to sell the
pledged securities and become a purchaser
of them. The Richmond and Danville
Railroad Company was shown to be a
party to the Speyer syndicate, which an
nounced that it intended to prepare a plan
Of reorganization for the Central
MUST HAVE REORGANIZATION.
Mr.. Conner stated that he took no part
IA the conference relating to the plan
talked about by Speyer q Co. He said he
had had an offer to refund the tripartite
bonds at 5 per cent, but after he failed to
get any more money for the use of the
company he saw nothing in sight for the
relief of the embarrassment Of the road
but plan of reorganization Hollins & Co.
took up this loan of Speyer Il Co, in ac-
CordanCe with an order of the court
These loans had been made before MIR.
Conner became receiver He said he would
have suspended payments as receiver
rather than to have mad0 the Spever
contract. The Richmond and Danville
railroad was a party to the Speyer
syndicate and was thus IA party to the
contract with the syndicate.
The discussion then turned on the steps
leading up to the formation of the l-eor-
ganizatiOn plan by the Hollins committee.
1t was shown that MIR Conner had offered
Mr., Oakman any information in regard to
the Central that he desired He first
came to the conclusion that it was in
solvent in October.
MR.. CRAWFORD AGAIN.
when Col Garrard finished his cross
examination Mr.. Crawford asked if She
whole plan was approved by the board on
Juno 10, to which Mr.. Conner replied that
it was, but that some additions had since
been made.
He continued at some length on the
point in regard to the timc of the publica-
ton of the plan and the time
that it had been agreed upon.
He desired it seems to bring out the fact
that the plan had been agreed to before
it had been published and before notice
was given.
The Terminal officials seem highly salts
fed with the results of the eXaminati on
One of them said yesterday;
1--WE are satisfied with the result of
this investigation and have successfully
accomplished our object in coming here
The testimony taken will be filed with
our motions now pending before Judge
jackson which are to be heard MAY .. ]
am not prepared TO say what action will
be taken in regard to tho suit in the city
court That will be seen when the time
comes
WHAT WILL THEY DO WITH IT.
Now that they have accomplished the
object of their visit with regard to the
examination, the question seem to be,
what will the Richmond Terminal people
do in regard to the suit in the city COURT
They will say nothing in regard to that
feature of the litigation, but it was
learned yesterday afternoon that certified
copies of the petitions asking the $1,000
600 Judgment were prepared for them to
be taken to New York, and they will
probably be considered later
The examination was finally con-
Cluded last night. Before it closed
Mr. Crawford took occasion to again
allude to the 5000, 600 loan, further en-
phasizing its uselessness and showing
that part Of it was used in taking up
some of the outstanding obligations
na1r,,a.v, / ~.