The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-06-28

or WAS UNCoNsrrrrrIoNAi.
Mr.. Miller started out with the bold
I proposition that the act 81 the LEGISLATURE
passcd IN ls72 authorizing the issuance on
4 the tripartite bonds by the three parties
+ 20 them was uncon Institutional
Mr. Miller claimed this point on the
. ground that this act had undertaken 70
amend the charters " three separate ana
I distinct corporations, cogulzance OF three
! subject matters thus being taken In one
/ act which, as is well known, is contrary
I 20 the provisions OF the constitution
From 1909 said he. 1.-THE south
western stockholders had submitted 10
/ that lease putting their property entirely
under the control Of the Central. The
act Of 1872 has never been accepted as an
amendment to the charter. In this case
we say we have occupied a position that
| if we are liable at all we are liable as
surety and no further.
I'VE claimed a right 10 a separate hear
ing on plea of jurisdiction. Your honor
has seen fit to consolidate all these cases
The decree now asked for their rests on
three separate mortgages. The Central
Trust Co., claims to be a trustee holding
a second lien, and they ask that the court
will grant decree Of sale upon the South
western first, as they say they have no
lien on that property, while the first mort
gage has We maintain that ne is cred
itor of the Central and not the South
western. He has got to be a creditor of
the Southwestern before he can invoke
any such doctrine as that. We have,
therefore, the right not only of law but of
equity. that the sale Of the principal
should be first decreed before the surety.
The Southwestern never came into
court until a default on the semi-annual
interest occurred. and we came in then
by intervention asking for the payment of
q rental 70 arp here merely IN force
a distress warrant in the capacity of land
lords.
col. MERGERS ARGUMENT
Col Geo. A. Mercer then made brief
argument on behalf of the Farmers Loan
& Trust Company.
Il desire" said he, Eat this juncture
to go over the pleadings. In reference TO
the first point taken by MIR. Miller we
will state that we were unaware that
such a point would be made. We call
your attention to the constitution, which
says no act shall refer to more than one
subject matter This act of 1872 contains
only one subject matter"
MIR. Mercer, we don't apprehend any
trouble on that point, said Justice jack
son.
Col. Mercer then continued with his ar
gument. 1t is not pretended that this
deed of trust is any more than a mort
gage, he said, A mortgage in Georgia
conveys no title. II simply gives a lien
upon the property.
Col. Mercer read the answer of the
Southwestern to the bill of the Farmers
Loan and Trust Company to disprOve
points made therein He took up the evil
dence and showed that at subsequent |
meetings of the stockholders no objection |
had been raised as to the valitidy of the |
action of the directory, and the matter |
had never been brought into |
question Act of 1872 gives another.
THAT act recites upon its face" he |
said, that these roads have each issued |
bonds and that they each desired to make |
Improvements for additions to their facil- |
tiles. The Southwestern had about $780, |
900 of outstanding bonds which they had |
to retire, and they could not have done so |
without obtaining money from this |
source"
Isn't it true that the Central also ex-
tended the Southwestern" asked Justice |
jackson.
Yes, sir" replied Col Mercer. "There |
is nothing in the charter to prevent the
tract"
WHAT THEY CLAIM.
''Now. Mr. Juliue," said Justice Jack
son, you claim that the South
western should be sold for the tripartite
mortgage, on which it is an indorser, so
that your second mortgage may realize its
value from the Central, do your"
Yes, sir, that's what we claim" re-
piled Mr.. Juline.
well, do you invoke that doctrine even
though you are not a creditor of the
Southwestern 2" asked the court.
Eyes, sir was the reply.
every well" said Justice Jackson.
"The hour of adjournment has arrived and
we will hear you on that point to-mor-
row."
The Central Trust Company is trustee
on the second mortgage which has lien
upon the Central railroad, but not upon
the Southwestern 1t is very natural
then that the attorneys for the Central
Trust Company should press the point
that the Southwestern is responsible for
the first mortgage if they expect to real
ize full value from their lien on the Cen
trail
Natural too, is it that the attorneys for
Brown q Sons should desire to urge this
point, as their bonds on which the Cen
trails guarantee has been declared valid,
constitute also a lien on the Central prop
er, and unless it is made to realize more by
the sale of the Southwestern first these
bonds will realize very little.
JUSTICE JACKsoN's REMARKS.
Justice Jackson's remarks with regard
10 the sale of the property and its present
insolvent condition We're full of signifi-
canoe. They practically refute the main
allegation of mismanagement made in the
Brown bill Receiver Conner has claimed
all along that after having investigated
the property he found that it had been
insolvent for some time. 1t is good in
dication that the court does not take
much stock in the allegation of misman-
agement under the receivership.
Justice Jackson's remarks upon the sale
Of the property are unmistakable as to
the determination of the court
1T MUST BE REoRGANIZED.