The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-01
A NEW MOVE In CENTRAL
THE SUPREME COURT ASKED TO
STOP FORBCLOSURE.

Reorganization Committee Extends
the Time Tor Receiving Deposits.
WASHINGTON, March 31.-This morning
an application was made TO Justice Jackson
of the United States supreme court by Pat
Calhoun and Leopold Wallach of New
York, with whom Senator 81. Q. Butter
appeared as associate counsel, in behalf Of
Alexander Brown & Co. Of Baltimore,
Simon Borg & Co. of New York and Robert
L. Harrison. large holders Of the junior Sc
curities of the Central railroad of Georgia,
TO stay the foreclosure proceedings in the
suit brought by the Farmers Loan and
Trust Company of New York against the
Central railroad for S5,OOO,OOO tripartite
bonds, on the ground that the foreclosure is
hostile to the best interests OF the junior se-
curity holders Of the Central road and its
associated lines.
Alexander Brown & Co. own more than
$1,000 900 of the Macon and Northern
bonds, guaranteed, both principal and in
terest, by the Central railroad.
Simon Borg & Co. own over 100000
bonds of the Chattanooga. Rome and CO.
Iumbus road. s248, 900 Savannah and West
ern bonds, $4,000 Central debentures and
800 shares of Central railroad stock
Robert L. Harrison Of New York, an
other petitioner, is also a large holder of
junior securities.
OFFER TO PAY OFF THE BONDS.
As condition to their request for stay
of said foreclosure proceedings the petit
tioners offer to pay all that is due on the
Central's tripartite per cent bonds at the
office of the New York Guaranty and In
demn1ty Company, 50 Cedar street. New
York. Their offer includes the principal OF
said bonds, the past due coupons thereon
and all accrued interest.
Among the papers presented TO Justice
jackson there was letter from the New
YORK Guaranty and Indemnity Company,
stating their readiness to pay for all of
said bonds, amounting, with past due
interest, to about S5,55O,OOO The Pc
titioners, after describing the mort
gagged property, state that ''the assets
or the company are trust fund to be sd-
ministered for the benefit of all its creditors
and stockholders, and that the petitioners
are cestuy que trust of said fund. That the
sale of said mortgaged property under the
foreclosure suit of the said Farmers Loan
and Trust Company would operate to cause
said property TO be sacrificed, and the in
terest of the petitioners TO be seriously inn
paired, if not totally destroyed, and irrep-
arabic damage would result therefrom;
that the petitioners, as junior security
holders of said Central Railroad and Bank
ing Company, having in equity a charge
upon the assets of said company, including
said mortRaged premises, respectfully claim
the right to redeem and hold for their own
protection and benefit without impairment
of obligation or security the said bonds
secured by said tripartite mortgage and to
stay the foreclosure thereof, and to be SUBJ
rogsted and substituted to all of
the rights, security and privileges
of the present holders of the
said tripertite bonds; petitioners
believing and charging TO be true that if
same be done and the foreclosure be pre-
vented at the present time the interest of
the junior security holders and stockholders
can be preserved and protected, and the
values of their several securities and stock
preserved from a loss which would other
wise ensue. Petitioners are prepared to
purchase from and pay the present holders
thereon"
TIE PRAYER TO THE PETITION.
The prayer to the petition is very short.
Here is the whole Of it:
l. Wherefore, petitioners pray that the pro-
ceedings to foreclose said mortgages be stayed
until the further order Of court and so long as
petitioners are ready to purchase said bonds at
price equal to all that is due thereon.
L /.
foreclosure suit and that the Central railroad
and the parties in said litigation show cause
why the stay Of said foreclosure proceedings
should not be continued.
Mr. Circuit Justice jackson made the fol-
lowing order:
Let this petition be filed as a petition pro in
tsresse su, Let all proceedings in the foreclosure
of said mortgage be stayed until the further
order of this court, and let the parties to this
cause show cause before me at my chambers in
in the city of Washington on the goth day Of
April, 1898. at the hour Of 10 o'clock a. m, or as
soon thereafter as counsel can be heard, why
the prayers of said petitioners should not be
granted and the stay o. the foreclosure pro-
ceedings be continued.
He further provided that the petitioners
should give bond of 100000; that they
would In good faith carry out the offer TO
buy the tripsrtite bonds contained in their
petition. What the effect of this suit will
be cannot be foretold. Mr.. Calhoun is here
and leaves for Atlanta tonight. He de-
clined TO be interviewed except TO say that
the interests Of his clients were
merely the common interests of
every junior security holder, and that he
presumed every one who had any real in
terest in the company, or indeed in the state
OF Georgia, would welcome the wrestling Of
the property from foreclosure and ruin.
ut is a great property" Mr.. Calhoun de-
clared, land if we can get its real owners
to unite in an effort TO save it they will find
how far they have been misled by state
ments disparaging its value. All the inter-
ests should be harmonized and the real
owners should pull together"
Il is stated that more equitable scheme
OF reorganization is now in process of
preparation and will be submitted to the
security holders shortly.
AN EXTENSION FOR DEPOSITS.
NEw YORK, March 3l.-The reorganiEa-
tion committe of the Georgia Central has