The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1893-05-30
THE CENTRAL HEARING.
MANY ABLY FOUGHT LAST WEEK
OVEE THE KECEITEKSHIP.
1t was a Highly Distinguished Gathering OF
AttOrneys-Justice jackson Gives Three
Day Hearing-Ad jOurns to Savannah.

| DAY hearings 0JOurllS ID o"ShHhah
| The fight over the receiyership of the
| Central railroad of Georgia was taken up
again Wednesday before Mr. Justice Howell
Jackson, of the United States supreme
court.
Mr.. III. II. Conner, the present receiver,
maintains that there is absolutely no need
for a da.ange in the management. He holds
that Il reorganization of the property Is
necessary and that the Central must be
sold. Those who are attacking the receiv-
ership charge that the purpose of the re-
organization scheme is to wreck the prop
erty They assert that the Central can be
pulled out of its financial distress by good
management and that in Il year OF two
under proper handling, the road will be pay
ing interest on its debentures and stock.
1t ought to pay its operating expenses and
fixed charges now without default Oh Il
single security, they say. The receiver says
that the Central is insolvent and must be
sold to be put on its feet again.
The first motion before the court is that
Of AlcXanuer Brown Il Sons, OF Baltimore,
and Simon. Borg n Co, vino want the sale
Of the Central en- Joined. This proceeding
was begun by Mr.. Iut Calhoun, counsel
for these parties. He filed the petition Ill
Washington Il few weeks ago Ahd secured
a temporary injunction. Inen there Is
proceeding by the ItichInond Terminal Com
pany to nave Mr. Conner removed as re-
ceiyer and some one else appointed. Other
parties join i'll this petition ana ask Justice
jackson to remove Mr.. Conner.
Alexander Brown " Sons and Simon,
Borg X Co.. are holders of q large amount OF
different GLASSES OF Central securities with
them is Il Mr. Iincy, of New Jersey, who
OWNS half Il million of Central stock and
debenturcs The Richmond Terminals in
tcrest is generally understood. 1t bought
$1,000 shares of the Central railroad stock
a few years ago and last year that block,
which is majority, was enJolned from
voting. The proposed reorganization plan
throws it into the minority. The stock Is
really tied up behind the Terminal 3 per
cent bonds.
The Central was first thrown into re-
ceiver's hands by Judge Speer, March /,
1892. on the application of Mrs. RoWena
Clarke, Of Charleston, 5. &. Mr.; Dan
Rountree, of Atlanta, was her lawyer.
General f. z. Alexander, who
was then president of the Central. was APP
pointed temporary receiver The chief OBJ
iects of that original petition for Il receiver
were to break the lease of the Central to
the Georgia Pacific and to get an account
ing between the Central to the Richmond
and Danvllc. the lessee of the Georgia
Pacific and the real party to the lease. In
a few weeks Judge Specr appointed Mr..
H NJ Conner. of Savannah, receiver with
the board of directors of the company rs
associate receivers. Along toward the
middle of the summer Mr.. Conner was made
permanent receiver of the company under
an application made in the name of the
company This threw the Clarke proceed
ing in the background and il has never
been a material factor in the litigation, SO
far as the naked eye could discover, since.
The Terminals majority block of stock
was dangerous to be left lying around loose
and it was put under an injunction restrain
ing it from voting unless it is sold and
passes into the hands of parties who are
not competitors of the Central. All last
year the Richmond Terminal laid very low
and observers wondered why they did not
make some move to get their property freed
from the injunction or out of the fix it was
in. But not step to that end WAS made.
The reorganization committee WAS formed
and in the course of time Il plan of rcor-
ganiZation was prepared. This plan CON
templated the foreclosure of the tripartite
mortgage and the sale of the system, and
an issue of stock i'll which the ma jorty
holding of the Terminal would be in the
minority i'll the new company Still there
was no showing of hands by the Terminal.
\ whole year elapsed before much trouble
began to brew. Then it came all ut once,
or ut least Il great deal of it came in a
heap. The Browns, Il very strong financial
house of Baltimore, New York and Europe,
objected TO the sale of the property and
offered to buy the tripartite bonds with nc
crued interest, the january coupons having
been dcfaultcd on. This objection was
brought in the shape of Il petition to JUS
tice Jackson ut Washington.
The way Mr. Justice Jackson comes to
figure in the case is that he is the presiding
justic of the territory which the Central
penetratcs. There is no one circuit Judge
who has supervision of all the states
through which the Central system runs
1t runs into three circuits and Justice was
wanted who had the jurisdiction to appoint
Il receiver for the entire property and con-
solidate the litigation.
The application for temporary iniunc-
ton against the sale of the road was grant
ed by Justice Jackson and later he set the
hearing on the motion to make the iniunc-
ton permanent for Atlanta. He selected
Atlanta because it is a convenient point to
Washington, New Orleans and Macon.
After three days hearing. in which
Judge Emory Spcer sat with him. by cour-
tesy. Judge Jackson adjourned the hear
ing of the case TO Savannah, June 26. He
announced that he proposed to wind the
matter Up then and get the case out of The
courts as soon as possible. His delay Of the
ease now was only for the purpose of hay
ing n consolidation of the various qucs-
lions involved, and he ordered the attorneys
to prepare themselves accordingly