The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-10-20
WANT THEIR ROAD BACK.
C., R. and c. R, R. Co. Apply to Judge
PaTdee to Restore it to Them.


vannah and Western Was Fraudu-
lent and Made for the Benefit Of the
Central He Also States That the
100000 in Savannah and Western
Bonds Were Never Delivered as PEI
Agreement - Judge Pardee Orders
Receivers Conner and Lowry to An
swer the Intervention.
! The receiver of the Chattanooga, Rome
and Columbus Railroad Company, Mr.. w.
G. Bum, is after the property which used
to belong to the company, and is endeav-
| oring to recover the road from the pos.
session of the Savannah and Western
railroad through the United States cir.
cult court.
He has filed an Intervention in the con.
soiidated cases in equity, of which the
Central railroad litigation consists, in
the circuit court here, making that re-
quest of Judge Pardee, and the Judge has
granted an order requiring Receivers
Conner and Lowry of the Savannah and
| Western to plead or answer to the inter
vention on or before rule day of the De-
Gem Der term, which is the first Monday in
December.
A QUESTION OF JURISDICTION.
The Intervention first gives the history
that led up to the making of the deed Of
trust by which the Central took posses
sion OF the Chattanooga, Rome ana Co
lum bus June l, 1891 some months after
which, in 1892, Gen. Alexander. MIR Joseph
Hull and others were made receivers of
the Central system. A brief statement
OF the manner of appointment of Receiv-
ers Conner and Lowry then follows.
fNNWr IL
trail railroad and the Savannah and
Western are citizens of the same state,
and as such the circuit court of the
southern district of Georgia has no juris-
dictiOn between them. The Central it
says, did not own the Savannah and
Western, but majority of the stock,
by virtue of which it operated it and con-
trolled its directory and assets.
SAYS THE PROPERTY WAS NEVER PAID FOR.
The Chattanooga, Rome and Columbus
Railroad Company executed a deed of
trust to the Savannah and Western rail
road on May 5, 1891 then the Central, it
alleges, took possession of the Savannah
and Western railroad 1t says that the
deed of trust was made and executed
without any valid consideration what
ever, and that the $500, 900 Savannah and
Western first consolidated mortgage
bonds, named as the consideration for
the deed Of conveyance, were never deliV-
cred by the Savannah and Western
railroad or any one, to the Chattanooga,
Rome and Columbus Railroad Company
The intervention further charges that
the Savannah and Western railroad never
at any time contracted to assume to pay
the principal and interest of the 2, 240 frs
) per cent. gold bonds of the Chattanooga,
Rome and Columbus Railroad Company.
as stated in the deed of conveyance, be-
cause it was known both to the latter
road and to the Savannah and Western
at the time the deed of trust was execut-
ed, that the Savannah and Western rail
road was an insolvent corporation, and
the assumption was worthless.
SAYS THE DEED OF TRUST WAS FRAUDULENT.
1t is charged further that the deed of
conveyance of the Chattanooga, Rome
and Columbus to the Savannah and West
ern is void, in that it was made to hinder,
delay and defraud the creditors of the
Chattanooga, Rome and Columbus Rail
road Company, in support of which ale
CATION it is stated that the Central rail
road is the owner of all or a majority of
the stock in both the Chattanooga, Rome
and Columbus and the Savannah and
Western, and that they elected the direct
DRY of those roads to suit their purposes
1t is further charged that the Central
was the owner of the majority stock at
the time of the meeting which authorized
the deed of trust, although the stock was
held, and was on the books in the name
of the Central Trust Company of New
York to the amount of "a, 755 shares, more
than majority; that the Central Trust
Company had no right to vote the stock
and did so by direction of the Central rail
road, which road had the deed made for
It's own benefit without considering the
interests Of the creditors of the Chatta-
nooga, Rome and Columbus Rail
road Company, and in fraud
of their rights, which are
now pending in Floyd county superior
court. The property was then taken pos
session of by the Central.
1t is charged that but for this fraudu-
lent conveyance all the debts of the Chat
tanOOga, Rome and Columbus Railroad
Company would have been paid out of
the company's property and assets. On
Feb 3, 1893, j. II. CaSon ct al. filed pc
tition for the appointment of permanent
receiver of the Chattanooga, Rome and
Columbus Railroad Company, in Floyd su-
periOr court, which finally resulted in the
appointment of w. Q. Bum to the per
manent receiyership. 1t was provided
however, that he should in no way inter
fere with the property of the road in the
hands OF Receiver Conner, but could re-
1AAl y NlAAb A4C NdAUCQ ny intervention.
Under an amendment to the original suit
filed in the Floyd superior court by H. Clay
Evans, Receiver Bum was authorized to
sue or intervene in any court for the pur-
pose OF recovering possession of the prop
erty OF the Chattanooga, Rome and Co
lumbuS Railroad Company, and for rea-
sonable rental for the time it has been
out of the hands of the company
WANTS RENTAL FOR THE USE OF THE ROAD.
Receiver Bum states in his petition
that $4,000 per month is reasonable
ana proper rental, aud such an amount he
says is due from June /, 1891.
In compliance with the authority given
by Judge Thomas w. Miner, of Flovd
superior court, Receiver Bum asks to
call the attention of the circuit court TO
the fraudulent practices connected with
the deed OF trust, and that Receivers
Conner and Lowry be required to answer
and show cause why the aforesaid or
ders appointing Conner and Lowry re
ceivers should not be declared of no effect
so FAR as the property of the Chattanooga.
Rome and Columbus Railroad Company
is concerned, and why they should not
pay the rent claimed 10 be due. aud also
any damage TO the personal property Of
that company.
Receiver Bum also asks that the decd
OF trust from the Chattanooga. Rome and
kohlers grand clothing opening at 40
BroughtOn street tomorrow Come and
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