The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-05-26

pected that plea of jurisdiction would
De entered and an effort made to have the
case heard in Judge Speers district, but
nothing of this nature materialized, ex-
cept that Mr.. Bacon. for the Southwest
ern' hied papers denying Jurisdiction and
repudlating the tripartite bonds so far as
ther alleged lien on the Southwestern is
concerned
4 PUzzLING QUESTION.
When Mr. Calhoun announced ready
question arose as to the order of proceed
ing. Justice jackson finally ordered
that the case of Brown & Son be pro-
ceeded with.
MIR. Calhoun then reviewed the history
of the Centrars troubles.
In the course of Mr.. Calhouns argu-
ment Justice jackson asked the question:
DO the laws of Georgia allow one cor
poratiOn to hold stock in another2"
Mr.. Calhoun said that that was
broad question and one that had been dis
puted in Georgia for many years, but the
CentraIS charter, which was given prior
10 the adoption of the constitutional pro-
vision against it, he thought allowed it.
Justice jackson and Judge Speer asked
Mr. Calhoun frequent questions during
ms argument, in which he endeavorcd to
show that his purpose in seeking TO pre-
vent the sale of the road was 10 protect
further decentralization.
Opposing Mr.. Calhoun, Mr.. Lawton
Sald the bonds of the Central, though in
default for over one year. are still selling
at considerably above par on account of
the accumulated interest on the principal
and interest. "We want to pay our
debts" he said "and for that reason
want to sell ON road. We cannot sell
our road except under judicial decree of
the court, or by foreclostARe. Reorganiza-
tiOn is the only hope of The company. If
motion is granted to stay the fore
closure the case can only lay helpless and
do nothing at all"
JUSTICE JACKSON ASKS MORE QUESTIONS.
At this point Justice jackson gave q
broad intimation of his view of the case
by asking Mr. Lawton the question,
do you think that it would be the duty
of the court to allow the property sold
while questions as to the liabilities are
still arising, as to the lease and the
validity of the ownership of stock2 Do
you think that the property should
be sold? Is that the way to make the
property of the Central realize the largest
amount for the benefit of those interested2
You say that the Central railroad
trustees have these bonds in charge
and it is their duty to look
after them and protect them"
rangements and say to the court, we
have made arrangements to pay off this
mortgage debt, and that would settle it,"
If you can avoid the sale of the Cen
trail" asked Judge% jackson, by the
Farmers Trust Company, is it the duty
of the court to sell it until it is thor
Oughly settled2"
Mr.. Lawton persisted in his position
that the road should be sold, and held
n IN, CT o.eIr
it is worth much more than the mort
gage. The Southwestern has disclaimed
liability on this mortgage.
COL. GARRARD's STRONG SPEECH.
Col. Garrard, representing the reorgan-
ization committee, spoke in favor of the
plan. He paid his respects to Mr.. Cal
hOun for his benevolence in trying to save
the Central from the marshals hands.
He believed in the charity which began
at home, and spoke of the Brown syndi-
'cate as ga blind pool" He argued that
the stay asked for by Mr.. Calhoun, if
granted, would prove an immense fortune
to his holders. If the reorganization is
held off for year or two these spectators
who want to buy the bonds will make
1920, 600 year out of the junior security
holders. The foreclosure of the road will
be a public sale, not a blind pool not a
clique but free and open affair.
JuSUlc6 JACKSON Sdlu ne agreed WIN
Col Garrard that a general creditor could
not come in and ask for a stay if the bond
holders were not pressing their claims.
If any creditor comes up now and asks for
stay until the legal ques-
tions can be settled, why should
he not be granted the stay. Would it
not be well to stay the foreclosure until
their claims could be adjusted?
Mr. Garrard said that if the foreclosure
were stayed it would be a magnificent
chance for speculation on the part of the
holders of the tripartite bonds, as many
of the Junior holders would be compelled
to sacrifice their holdings.
BANQUET.
Tonight banquet was given Justice
Jackson of the supreme bench by the bar
of Atlanta. Chief Justice Logan e. Bleck-
ley presided. All of the visiting attorneys
in the Central railroad case, over which
Justice jackson is presiding, were pres
ent, together with leading lawyers of
Georgia. The toasts were responded to
by a number of prominent guests.