The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-05-26
CENTRAL'S BATTLE ROYAL.
The Hearing Before Justice Jackson
Under Way.

Momentous Importance to the Pro-
posed Observation-Disclosures by
Justice Jackson That May Indicate
a Leaning Toward Granting a Stay
of the Proposed Sale of the Road.
Nothing Crops Out to Indicate That
Receiver Conner Will Be Removed.
Atlanta, Ca, May 25.-The circuit court
of the United States was in session here
to-day, with Justice Howell Jackson pre-
siding, for special hearing of the petition
of Alexander Brown g. Son and Simon
Borg & Co of New York to intervene in
the suit of the Farmers Loan and Trust
Company of New York VS. the Central
Railroad and Banking Company of Geor-
gia, and for stay Of proceedings to fore
close the S5,000O0O of tripartite bonds
of the Central, Southwestern and
Macon and Western companies past
due last January, and S1,2O0000 of which
are in the hands of the Farmers Loan and
Trust Company for collection. The case
is one of vital interest to the future of the
Central railroad system and the proposed
plan of the Hollins syndicate for the
widespread attention throughout the
south and in the railroad circles
Of the country. If the Intervention
is sustained by Justice jackson it will de-
feat the Hollins plan of reorganization of
the Central railroad and stay the fore
closures on the main stem and affiliated
roads that are also in default by reason of
the Centrals failure to pay interest
guaranteed on their bonds, and
opens the whole case to legal
settlement of every form of in
debtedness and their priorities before
the sale of the road can be ordered and
effected. Meanwhile if this stay is
ordered, the system will be in the hands
of receivers appointed by the court. The
intervention by Brown & Son and Borg &
Co. IS upon a proposition that they be
allowed to take up the tripartite bonds
in the hands of the Farmers Loan and
Trust Company and become sub
rOgated to the latter's first
mortgage lien, thereby giving to the in
tervenOrs the key to any future reorgani-
zatiOn of the system or advantage in bid
ding on the CentraPs properties at mar
shal's saleof them when the court shall
order a sale. The Richmond Terminal
Company is backing the intervenors in
their fight to break up the foreclosure,
which is the prime factor in
the proposed Hollins reorganization.
If the Intervention is upheld it is pre-
sumed the next move will be to revoke
the ruling of District Judge Speer that
the Terminals AZ 600 shares of Central
stock are illegally held, have them re-
instated as voting stock and thus permit
tins majority Terminal interest to control
the future reorganization of the company
The fight now on promises to be battle
royal. Over S50,000,000 is at stake and
the case will probably be on for two
weeks. Justice Jackson presides, as
sisted by Judge Speer.
THE ARRAY OF ATTORNEYS.
The attorneys here to take part in the
case are Lawton & Cunningham and
Samuel B. Adams of Savannah, and Col.
N. j. Hammond, representing Receiver
Conner; Calhoun, King and Spalding of
Atlanta, Senator M. G. Butler of South
Carolina, Leopold Wallach of New York
and Judge William d. Harden of Savan-
nah, representing Alexander Brown s,
Son and Simon Borg & Co. of New York
a. .. Bacon of Macon and
F. H. Miller of Augusta represent
the Southwestern railroads; d. w
Rountree of Atlanta, Marion
Erwin, and r. w. Patterson of Macon,
representing Mrs. Rowena Clarke; ex-
Secretary of the Navy Benjamin T. Tracy,
OF New York, John $. Auerbach of New
York, and Col. William f. Garrard of Sa-
Vannah, representing the reorganization
committee; G. N. West and John w.
Weed of Savannah, representing John S.
1lney of New Jersey, large holder of
common stock opposed to the reorganiza-
tlon, and who joins in the application for
new receiver; Capt. Henry r.. jackson
OF Atlanta, Henry Croffoot of New York,
and Walter G.. Charlton of Savannah,
representing the Terminal company;
Col George A. Mercer of Savannah, rep
resenting the Farmers Loan and Trust
Company of New York; Charles C. Bee
man Of Evarts, Beeman g. Choate of New
ork, representing the Mutual Life In
surance Company
CALHOUN UNDER FIRE.
A severe arraignment of Pat Calhoun
and his associates by Messrs. Lawton and
Garrard of Savannah, MIR Lawtonarepre-
sentlng Receiver Conner and Mr. Garrard
appearing on behalf of the reorganization
committee, was the particularly interest
ing point in the case to-day. This ar
ragnment of Mr.. Calhoun and his clients,
alexander Brown & &c. and Simon
Borg q CO., was upon the same charges
OF intended speculation and spoliation as
nave been made before. No new facts were
brought out and the charges made were
advanced in general way only. While
the arguments of Messrs. Garrard and
LaWton partoOk of the nature of arraign-
Aent Of the purposes of the interests led
ny Mr.. Calhoun, the impression created
oJ Justice Jackson's attitude during the
procedure seems to be favorable to a stay
ol the foreclosure proceedings. which
would mean serious setback TO the re-
organization of the Central property,
throughout the sitting to-day Justice
jackson put questions and gave express
son to views showing pretty clearly that
aO TINS stage of the case. viewing it in
Ihe light of the facts so far dcvel-
oped he would consider the sale
oi the road opposed to the best interests
VI the security holders
TIE ATTEMPT TO REMOVE CONFER.
AS to the dismissal of Receiver Conner
ana reversal of other acts of Judge Specr
eoInplainedof nothing has yet been brought
Vut upon which TO base a prediction In
lact the proceedings to-day were in the
nam preliminary and the indications that
.lle sale Of the property win be stayed
XlaA oc changed when the case is more
iliy untolded 20 Justice Jackson. The
.uslice announced that he wished 10 go
INTO the ease in detail 10 thor
V4ehly familiarize himself with
l' entire situation before hc
eN1rrtukes 20 pass upon the inportaut
Fl.htions intrustcd 20 him. When inc