The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-06-28
THE CENTRAL MUST Be SOLD
Justice SaCkSOl Says Il Has Long
Been HOpeleSSly IRSOlVelt
MR. CONER'S POSITION SUSTAINED.

The Court Says II viii Not Force the
Property to an Early Sale and Saori-
Zee IL, But VIII Await an Adventa-
geous Time-The Motion of Jno. s.
Tilney for Continuance of the Fore
closure Suit Overruled- The South
western Liabilities on the Tripartite
Mortgage.
The progress of the Central railroad
litigation yesterday indicates, almost be
yond a doubt, what the determination of
the court, with regard to the property,
will be at this hearing.
The announcement by Justice jackson
that he intended to proceed to a decree,
and that the Central was a wreck, made
shortly after the opening Of court yester-
day morning, was a surprise to many of
the litigants who have interviewed in the
case, and who had hoped to stay the fore
closure proceedings in the interest Of their
holdings of stock.
The determination of the court was so
clearly set forth, however, that there
could be no mistaking what was meant
However, his language was so qualified
that there are no fears among the friends
of the property that it might be rushed to
too speedy a sale, under the unstable
and depressing condition Of the financial
market.
LIABILITY OF THE SOUTHWESTERN.
The question under discussion yester-
day was the liability of the Southwestern
on the tripartite mortgage, and it is
strongly intimated that Calhoun, King a.
Spalding, attorneys for Brown 81 Sons and
their associates, will take sides with the
Farmers Loan and Trust Company in
pressing the validity of this liability.
This is Of course evident from the nature
of the case, as the Macon and Northern
and Chattanooga, Rome and Columbus
bonds on which Justice Jackson declared
the Central's Endorsement valid are debt
of the Central's, but one which Is so far
outranl1ed by the tripartite bonds
that the Southwestern would have to
be sold to satisfy the first mortgage in
order that the Central could bring enough
TO pay much of anything on the mortgages
which fall below that. Indeed this is the
position taken by the Central Trust Co
of New York, trustee under the second
mortage. The soundness of this doctrine
however, is questioned.
WANTED IT POSTPONED.
When the court convened at 10 o'clock,
Mr. c. n. West, representing Jno S. Til
ney of Orange n j., again pressed his
sale during the term.
Difference as to facts between the Far
mers Loan and Trust Company and par
ties defendant to the suit still existed, he
said, and it was necessary to take great
deal of testimony on these questions be-
fore the facts could be settled. They had
right to be allowed three months in
which to take testimony. The condition
of the country. too, had changed as to
monetary conditions, and for that reason
a decree should not be taken at this time.
There was also bill pending for new
receiver, concerning the merits of which
he had nothing to say. That new re-
ceiver, however, might at the next term
present to the court such a statement
of facts, that a decree would be unneces-
sary:
MIGHT BE UNNECESSARY.
Mr.. West thought he might find such
state of facts in regard to this property,
which a few months ago was earning all
expenses, that ii would be unnecessary to
sell it.
"You represent a private stockholder,
do you not3' asked Justice johnson.
"Under certain circumstances, replied
Mr.. West. THE court admitted us to
represent stockholders largely"
you were simply allowed to intervene
here" said Justice jackson, land not to
delay the proceedings by any such meas
Trust company, and other representa-
tives of the tripartite mortgage due Janu-
airy /, 1893, which are now past due de-
manding decree of sale to get their
money"
Mr. J. S. Weed of New York, represent
ing Jno. S. Tilney then raised the ques-
ton OF the responsibility of the South
western on the tripartite mortgage, and
thought as no conclusion had been reached
by the opposing attorneys with regard to
the facts that continuance should be al
lowed.
"The Southwestern" said Justice
jackson, lis either Joint debtor, or is
secondariiy liable on this indebtedness.
Is there anybody here who disputes that
proposition2"
I'VE do, most certainly" Mai. Bacon
replied.
THE CENTRAL IS A WRECK.
Just here Justice jackson made
statement that was full of significance
so far as decree of sale is concerned
Ills statement fully sustains the position
taken by Mr. Conner that the property
has been insolvent for a long time, per-
haps for several years
Its Significance, too, will be
better understood when it is
remembered that the Brown bill alleged
that the property was solvent up TO
March T. 1892, and that 1t has been made
tration. Justice Jackson's statement
clearly disproves this allegation. Justice
Jackson said;
I'VE will get up to the facts and see if the
court can render its decree, and if it can
it will do so, In addition to that the
court does not mean, gentlemen, to let
YOU understand at once for all TO force
this property to an early sale and sacri-
flee 1T, The court will give the longest
time it can, in view Of all the surround
ing circumstances and financial situation
ofthe countryto prolong the period before
1t is brought TO the hammer, as long as it
can do so in the exercise of reasonable
and just discretion, ana in addition to
that it will sell this property in a
shape and in a form that will bring the
most money"
II will sell-will order the sale of this
stock of the Central railroad in each sep
arate road. will order the sale of each
lease, lease by lease. l will order the sale
of the Central railroad property itself,
and then 1 will expose the whole thing to
public sale, and the mode of sale that real
ICES the most money will be adopted by
the court.
MIR. CoMER's POSITION SUSTAINED.
Now, why should we prolong this
frrk7a IL - /.