The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-22
TERMINALS Fight.
Attorney Crawford Repeats His Argu.
ment at Washington.

IN ont at w 9sDlL SJOn.
WASHINGTON, April 2l.-The hearing Of
the order to show cause in the case OF the
Farmers Loan aud Trust Company VS.. the
Georgia Central Railroad and Banking
Company, on the petition OF Alexander
Brown and others for stay OF proceedings
Of the foreclosure suit on the tripartite
bonds, coming up for hearing in the SUI
preme court yesterday, counsel represent
ing the Hollins plan of reorganization re-
quested an adjournment, which was
granted to May 2.
In the papers that we're filed some rather
sensational charges were made. Senator
M. c. Butler, Patrick Calhoun of Atlanta
and Leopold Wallach of New York. rep
resented the petitioners, and J. Hubley
Ashley the Holiins committee. At the same
time Henry Crawford, in behalf Of the
Richmond and West Point Terminal
Railway and Warehouse Company pre-
sented a petition In tine Rowena III. Clarke
suit, setting forth the appointment Of res
celver and other proceedings in this and
| other collateral actions, and among other
things that on Jan. 10, 1898, the Holins
syndicate and the Mercantile Trust Com
pany formulated plan of reorganization
with power to pay its mem
bers compensation for services, coun-
sci fees. etc, that ooBtempOraneous with
the adoption OF such plan, II. M. Conner,
the receiver, filed IN court Jan. 10, bis peti-
ton that there was imperative need to bOr-
row for immediate use not less than $780,
| UOO nor more than $1,000. 600 and praying
authority TO effect this loan for tho
| Hollins syndicate On the same
day, it was claimed, without notice or
| further proof than the petition, the
court entered an order authorizing the re-
ceiver to effect this loau; that on Jan. 10
the receiver entered into contract with
the Holhns syndicate and the Mercantile
| Trust Company, reciting that he had bor-
rowed 5000, 900 payable July /, 1898, and
pledged therefor substantially all the
stocks, bonds, ETC., of the Central Railroad
| Company, not only TO repay the loan
made, tsas further security for s.. .SS9, ,2U6.
due July l, 1923. to the Hollins syndicate
and S7O5, OG3 due the same date to the Mer-
camille Trust Company ana that he had
| also allowed them 20 lie used as fund to
pay the charges and expenses OF the reor-
| ganizadon scheme.
1t is furih her stated in the petition that on
| the same day that the Hollins
plan of reorganization Yves first
| made public in general advertisement
lt was declared that the same had received
the approval OF the receiver that on Jan
%, MIR. Conner. as receiver reported the
O<NSSAbAol VI tll5 COntIBCt. as OuuR0 Emory
Speer entered an order approving the act
Copies OF the petition, contract, report and
orders OF approval were filed yesterday,
before Judge jackson.
Among other things, it is claimed in the
petition by the Richmond and West Point
terminal Company that Judge Speer had
no Jurisdiction to authorize the re-
| ceiver to enter into the contract.
/ that the orders Of Jan. 10 and 25 are irreRu-
lar, inequitable, and we're not justified by
the showing made. aud should be vacated
! that the court had no jurisdiction to COM
nit Its receiver to pledge substantially all
| the corporate assets TO the furtherance of
| the plan or reorganization, OF 60 decree
that the charges and expenses incurred by
| the promoters Of such scheme should be 3
charge upon the corporate assets.
There elso appears charge that the reCi-
tai In the receivers petition that such pro-
| posed loan was OF imperative necessity to
! the trust estate, and to assist In maintain
| Ing the autonomy Of the system" were
| grossly misleading and untrue. The petit
toner also says that il he is permitted to
take the testimony Of the receiver and his
| accountants for use upon hearing of
| this application, that he will be
| able to fully prove that not a
| dollar Of the $G00,UO0 was Of imperative
necessity, or was used to maintain the
| autonomy OF the system, but that at least
| tWo-thirds of it was used to effect a renewal
| or the outstanding loans TO members Of the
| syndicate and others, having certain bonds
and stocks us collateral, and to pay the
| claims nnd expenses Of the reorganization
| committee, and that the remainder was to
pay off certain car trust and receivers OBJ
legations.
Judge jackson has grantsd an order 30
be set down for hearing May 2, restraining
the receiver from doing any oct in execu-
tiOn of tho contract of Jan. 10. and direct
ing forthwith the service OF the order on
the receiver, II. B. Hollius &g Co., the Mer-
camille Trust Company and the solicitor Of
the complainant.