The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-06-30

companv were reserved for the benefit OF
the non-assentinr security holders II
was the duty Of the receiver % preserve
an aliquot part Of these securities for the
non-assenting parties.
"Mr. Conner voted the Southwestern
stock owned by the Central in favor sell
ing the Central first before the South
western"
NOT A FAULT OF ADMINISTRATION.
Just here Justice jackson made a state
ment from the bench which fully vindi-
Gated Mr. Conner from all charges OF
I craftsmanship towards any interest what
ever concerned in the HOllins reorganiza-
/ ton.
The statement of Justice Jackson not
! only indicated Mr. Conner so far as that
| charge was concerned, but went so far as
to earnestly deprecate that the plan had
! fallen through.
| The words Of the Justice caused rip
| pie of profound surprise and earnest APP
| proval to pass over those in the court
room, and an outburstaof applause was
| imminent when the marshal called for
1 order.
| Speaking first Of Mr.. Corners action in
| voting the Southwestern stock in favor of
| the sale of the Central first, Justice jack
| son said
That's not fault of administration.
! Able counsel have shown the possibility
of that action.
| A GREAT MISFORTUNE.
81 say that after thorough investiga-
tion of this matter" said Justice jackson,
| lit is a great misfortune that the
! Hollins transaction could not be carried
out AS l have examined the scheme
! since we heard this matter up in Atlanta,
| it will come nearer affording protec-
/ tion--it would have afforded q larger
! share of protection than the underlying
creditors are likely to secure.
"They did not provide for the floating
! debt. They did provide for a large por-
tion of the stock of the Central. They
| did not provide as you (Mr. Calhoun)
| thought they ought to.have provided for
| the guarantee of the Macon and North
ern bonds, but you had your Gown indie
| pendent security for your bonds, and then
| after exhausting the Independent security
| you could come into court and reach any
surplus that might be had here from the
! sale under the foreclosure.
AS BUSINESS MAN.
"But my deliberate Judgment as a bust
ness mani am not talking as courts,
seeing and understanding the situation of
this property, my deliberate Judgment as
| as business man is that it is unfortunate
to the debenture holders and the floating
creditors of this concern and stockhold-
ers both, taht that scheme could not have
been carried out.
81 hope as man, as the Judge presiding
over the court which is administering this
! great property, that all these conflicting
interests would get together and unite in
some scheme that would save out some
thing to secure these unsecured creditors
If they cannot save any stock, at least
| save unsecured creditors.
THEY WILL REGRET IT.
v.ffI ~
when every unsecured creditor of this
great enterprise will regret that the
Hollins scheme could not have been ex-
! ecuted"
These words from the Justice met with
approval on every side, and they were the
strongest Indication that the court could
have given of his confidence in the receiv-
er's administration.
''Idiffer with the court on some points, :"
said Mr.. Calhoun. Il have sought to get
| together all parties and come to some
| agreement"
Mr., Calhoun admitted that he had not
been refused the Investigation of any
records in the Central offices that he had
desired to see. He said something about
the SECURITIES he represented not having
been recognized in the Hollins plan.
" In my Judgment" said Justice Jack
son, that was the best thing in sight,
until something better was offered
MR.. CALHoUN's IDEA OF ORGANIZATION.
Mr. Calhoun said he would pass to some
specific instances of mismanagement
There were a number of interests who
felt that their property was jeopardized
and they asked the protection of the
| court
''My conception of o reorganization, -
he said, ''has been that all these subordi-
nate properties feltall these debts to be the
debts of the corporation. My idea of re-
organization has been based on the lines
fixed by the court. That is to take each
/ piece of property and give it fair value
/ in a new bond, and the difference between
what the property realized and the face
| of the debt which the Central now owes
| give junior security"
SOME SPECIFIC INSTANCES.
In passing to specific instances of mis-
management, Mr.. Calhoun said that a
criticism of mans actions was a very I'M
| pleasant task to him.
"Those instances he said "do not
lead to the conclusion that he is dishon-
est We can show his inef1iclency with
out anything of that kind"
Mr.. Calhoun then took up the lumber
| Incident, where James K Company, of
Baltimore, refused to sell Hopkins &
Schley lumber, at S37 80, and bill it to the
Central at SO per thousand, and credit
JuGuA HApll bliC 0lALCLGllNNs IAO ItNu bllE
correspondence, which is familiar to every
one.
1--WE find this firm instructlng house
in Baltimore to fill this order with lumber
which did not como up to specifications
The lumber ordered by Hopkins & Schley
was that bought by them at S37 so, and
was not the lumber specified in that or
der. The facts develop that Hopkins &
Schley are agents for these firms, and
they tina out what acquisitions come in.
They took the liberty Of putting the price
of SIS and $50 on that order. They get
orders from the Central and have the
merchandise shipped to the road and have
the difference credited to them. The or
der was first made out to the
e. ID. Afro Company and then their
name was erased and that of Hoplxln!
Schley was substituted. The order was
then filed by another concern.
''We came across a similar order fol
poplar lumber, filed by the Bridgeport
Lumber company. A large portion O
these transactions date back to the ad
ministration of a purchasing agent, whom
Mr.. Conner nays he has removed, Mr..
w. Conner having recently been put in hi
place, That item may be small, but
shows the management of the Office"
MIR. CONFER NOT RESPONSIBLE.
CHOW do you hold the receiver RESPONSE
bleln asked the court.
Through his agent, said Mr.. Calhoun
cam / to understand that you charg,