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

I regard 70 tho property.
"I'm going 90 issue "a decree 10 this case,
/ gentlemen he announced. IL override
/ the motion OF MIR Tiluey for a continuance
/ ofthe decree of sale. Proceed, Mr.. Tur-
l ner. "
Before Mr. Turner began his argument,
I however, something occurred which led
/ TO "a ruling that may play "a prominent
/ part in the proceedings before they have
been concluded.
MIR. Marion Erwin said that
! the court had not asked the
/ day before whether the fact
| that the Richmond and Danville and the
/ Central were competing lines at the time
! the lease was made, would affect the en-
! dOrsement of the Central on the Macon
| and Northern and Chattanooga. Rome and
| Columbus bonds. He wanted TO know if
the question of the endorsement was
/ affected thereby
1--WE don't think il does" replied JUS
! tice jackson. owe don't think it affects
the Endorsement. That question may
come up later, but it don't affect the Cen
trails guarantee on those bonds"
PRESSING THE FORECLOSURE.
Mr. Robert B. Turner, for the Farm
| ers' Loan and Trust Company, said
| they were here to press foreclosure
suit. He was glad that Mr.. Crawford
had saved him the trouble yesterday of
discussing the question of jurisdiction,
which he did so ably For" he said,
Il am no orator as Crawford is.
The most important question was that
with regard to the Southwestern. There
were also some differences Of opinion as
to the order of sale of the two roads. He
read an act of the legislature showing
that both Macon and Western and South
western had issued these tripartite bonds
and had afterwards united with
the Central railroad and that thus all
three became Joint parties TO the tri-
partite mortgage. The act showed that
they were issued by these three companies
and that each had Severally indorsed
them. They had issued these bonds and
sold them for s., 100000 for the purpose of
making improvements on their several
roads, and were given power by that act
to execute mortgages on their property
and franchises to secure the bonds.
THAT is the act under which my clients
hold the bonds" said Mr.. Turner and we
hold that it is conclusive as to the
Southwestern railroad. 1t is the public
act in pursuance of which the mortgage
was made and each jointly pledged their
properto and franchises for the debt, and
each is responsible for it.
''Now we have proved the mortgages
and bonds, and | suppose there are few
facts to be taken up in the case. ! will
yield TO Mr.. Bacon who wishes to argue
BcAAAv
THE MORTGAGES READ.
''Will you read the mortgages" asked |
Justice Jackson.
The mortgage executed by the Centr al |
was read by Mr. Turner and he then |
yielded to the attorneys for the South |
western, who claimed that their road was |
not liable for the S5,0O00O0 tripartite |
bonds although their Endorsement was on |
them and they had executed a mortgage. |
The mortgage read showed that the en-
tire property of these roads, their estate
and all sources of income were pledged as
a security for these bonds.
1--WE claim" said Mr.. Turner, "that
these railroad companies mortgaged |
their life, their right to exist-every-
thing. 1t has been held that the mort
gage Of franchise mortgages all rights
obtained under the franchise. | don't
claim anything quite so broad as that,
but do claim under this mortgage that |
these companies have mOrtgaged every
thing they own. l agree with the court |
in regard to the sale of the property"
"H your mortgage has prior right on
the securities owned by this company, it |
has a right on the securities hypothecated |
for loans, has it not3n asked Justice Jack
son.
Eyes, sir, we think it has, replied Mr..
Turner.
MAJ. BACON'S ARGUMENT.
Mr.. Joline took issue with Mr.. Turner |
on the last point made.
"The court merely desired to get at the |
nature of the claim, said Justice jack |
son.
"Yes, we claim the earth, !" said MIR.
Turner.
Maj. A. o. Bacon then took up the ar
gument in behalf of the Southwestern |
and said that on account ofsthe magnitude |
and Importance of the question in regard |
to the Southwestern he would ask the !
indulgence of the court.
The question, he said, involved every
thing TO this property.
If the complainant is sustained il |
wipes the Southwestern Railroad out of |
existence. The stock amounts to little !
over S., 100000. We claim that it owes
nothing, The compliments claim that it
owes everything
Il desire to call the attention of the |
court to the strictness and rigidity of the |
rules of law in regard to this matter"
Take your own course, Major said
Justice jackson. "The court has no de-
sire TO curtail you. We have no desire to
hasten things too much"
Major Bacon then thanked the court,
said he would not trespass upon its time,
and read the account of the incorporation
and the financial history of the South |
western railroad. The circumstance of
the lease Of that road by the Central was
also recited by Major Bacon. The South
western has never been in the hands of
the receiver as a receiver, but only by
virtue of the lease held by the Central.
Maj Bacon then read from the lease of
the Southwestern by the Central and the
contract under which it was made BY
the terms of the lease a semi-annual
rental was to be paid. The first semi
annual rental which fell due under the
receivership was paid, but the other two
had not been paid
NOTHING TO DO WITH THE ACT OF 1872
"One stipulation in that lease" said
he, lis that if the rental remains in
default for six months the South
western has the right to reclaim its
property. That time win expire
next Saturday. The Southwestern had
nothing to do with this act of the legisla-
ture of 1872 authorizing the making of
this mortgage. My assumption of that
fact is based upon the fact that
the road either through its
directors or stockholders never, acceded
to this act"
"What difference does 1t make major,
If the road, consents toact after it has
been passed." asked Justice Jackson.
u will discuss that point later said
Major Bacon. THE records of the Cen
trail show that it did endeavor to procure
Of hut, 80 -