The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-05-25
CAN HE DISMISS THEM?
Judge JaCkSOn'S Right to Annul Judge
SpecTiS Orders Denied.

Laid at His Door-The Answer of
the Directors-other Papers Filed by
Rollins & Co. and the Mercantile
Trust Company-Of For Atlanta.
Central railroad litigation was compli-
Gated by the filing of about thirty or forty
additional papers in the United States
circuit court here yesterday. Among
them were numerous interventions, AFT
davits and answers to the suits and mo-
tions already filed which are to be heard
in Atlanta to-day.
The answer of Mr.. II. NJ. Conner to the
bill of Alexander Brown & Sons was per-
haps the most interesting and important
of these papers, and contains the gist of
the argument which the Central's attor-
neys will make to uphold theri side of the
case.
Mr.. Corners answer states that the
Brown bill contains no equity. and that it
sets forth no valid reason for the interpo-
sitiOn of court of equity to entertain it,
nor any valid cause of action 1t states
that the bill sets forth no good reason
why Mr.. Conner should be discharged as
receiver of the properties, and no reason
why the contract Of Jan. 10, 1898, should
be set aside.
THEIR STRONG POINT.
1t will be remembered that one of the
motions made by the Richmond Terminal
is to set aside the orders of Judge Speer
under which the receiver was appointed
and under which he borrowed certain
sums of money. Upon the following
statement in Mr.. Corners answer great
deal of the argument in reply to this mo-
ton will be based:
THAT the orders of the court of July
10, 1892, by which this respondent was APP
pointed receiver, of Jan. 10, 1898, by which
this respondent was authorized to make
the contract of Jan 80, 1898, and of Jan
%, 1893, by which the said contract was
approved, were made and entered in open
court in the circuit court of the United
States for the eastern division of the
Southern district of Georgia by one of the
judges of said court, and no other Judge
of the said court has power, Jurisdiction
or authority to set aside or annul any Of
the said orders, and pa ticularly no other
Judge of the said court has power to do
the same at chambers"
THE LEASED LINES
Mr.. Conner then goes on to show that he
is not the receiver of any of the leased
lines, but only has charge of them under
the lease, and he asks that strong proof
be demanded of the allegation that
Alexander Brown & Sons own 81, 000, 600
of Macon and Northern bonds
he admits the statements of lines owned
and operated by the Central, and of the
liabilities and defaults of the company to
be generally correct, but denies that any
default has been made in the rental of
the Augusta and Savannah railroad,
stating that the rental is not
due until June, 1898. It is also untrue, he
said, that the Central has defaulted in
payment of rental due the Mobile and
Girard railroad.
'NOne of these defaults were intentional
or premeditated," he says, ''or made for
any other reason than that the money re-
CURED for the payment of the coupons
AMI rentals had not been earned" He
then goes on to show that no suits have
been brought on any of the defaulted
bonds or interest which are not properly
cared for under the reorganization plan,
except the Macon and Northern and the
Chattanooga, Rome and Columbus
DENIES ITS soLvENCY.
Mr.. Conner denies that the Central was
solvent on March l. 1892 He first thought
it was, but later Investigations proved
differently. He does not hesitate to say
that it is insolvent now.
He denies most emphatically that the
directors had any design in making the
defaults upon the company's obligations,
or could devise any method to prevent
them. He denies that the Rowena Clarke
bill was defective, but as that is a uues-
tion of law he refers it to the court
Mr.. Conner also admits the formulation
of reorganization plan by committee
| and admits, too, as is charged, that he
fayOrs that plan as the only hope for the
rehabilitation of the property He ex-
plains why he did not accept the offer to
| extend the tripartite bonds at per cent
as explained III his testimony given a few
days ago. He explains the man
ner in which the Hollins syn
dictate took up the Centrars outstanding
obligations. He said he had no positive
knowledge as to whether the Farmers
Loan and Trust Company desired his,
appointment under their foreclosure bill
but they had made no objection.
He says it is not true that the reorgani-
cation agreement was made for any i'm
| properpurpose, and states thathe has in no
respects violated his obligations or duties,
! but has endeavored to conserve every in
| terest of the property. He denies that
the Mercantile Trust Company has taken
any legal titles to the company's securi-
! ties for any other purpose than is ex-
| pressed in the agreement.
DIFFICULT MATTER.
sit is very difficult" he says. "for the
| respondent to properly refer to the vague
| charges of mismanagement which are
made against him. Not only are the same
| not properly set out according to the re-
! quirements of law, but no specifications
being given, this respondent has no
means of knowing what charges he is to
meet. He is, therefore, compelled to deny
mismanagement in the same general
terms in which it is charged, and to as
sert as reply thereto that he has man.
aged it to the best of his ability and skill.
and has surrounded himself with men
whom he believes to be skillful and fully
qualified for the positions which they
fill"
He denies that he had anything to do
with the suits on the certificates of in
debtedness by the Mercantile Trust Com
pany except to receive sheriff's subpmnas.
He denies that he has assumed partisan
attitude with regard to those suits He
firmly believes that reorganization is the
only hope for the company.
as the proposed plan will keep
the property together He
has been advised by many others that
this plan is the only hope.
He most positively denies any conspir-
! acy between Hollins 81 Co., the Mercan-
tile Trust Company and himself and states
it as his belief that the efforts to break
up the plan is merely speculative and for
| the purpose Of extorting better terms for
| the compliments. He says he has been
harm y ,p1te mart fae If "a va 4,