The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-06-29
TO co UNDER THE HAMMER
The Central 10 Be Sold For lis
Debts.
SOUTHWESTERN TO PAY OyE-THlRD.


That Is the Amount of the Tripartit
Mortgage for Which Justice jackson
Holds That Road Liable-His Decree
In Full-The Tripartite Mortgag,
Comes First and the Five Per Cent
Bonds Second-The Roads to Be Ad
vertised In OBSERVATION-DISCLOSURES o.
All Leased Lines to Be Brought Into
Court To-day.
The question what will be done with
the Central Railroad is no longer in
doubt u will be sold, and sold, too, with
in eight or nine months, unless the court
sees fit to modify or change his decree
which he reserved the right do.
The question of the liability of the
Southwestern on the tripartite mortgage
that vexed question upon which a great
deal of time was consumed and about
which there was so much anxiety on all
sides, has been settled, and the Southwest
ern must pay one-third of the value of the
tripartite bonds, together with interest
amounting to about 81, 700,0 900, by the first
of December, 1898, or il must be advertised
and 90 under the sheriff hammer to sat
isfy that debt This is the only debt
placed upon the Southwestern and the
only one which the property bears.
On this point there will probably be an
appeal to the circuit court of appeals at
New Orleans. 1t may be that Justice
jackson had this probability in mind
when he rendered his decree setting the
limit of time at December l, 1898, as the
court of appeals would take up the case, if
it took it up at all, in October, so that
plenty of time is given for the making Of
any appeals that parties may desire to
make.
SHOWED THEIR COLORS.
The attorneys for Brown & Sons show
ed their colors yesterday when Mr.. Leo
pord Wallach maintained with the Far
mers Loan and Trust Co., and the Central
Trust Co.. that the Southwestern rail
road should first be sold to satisfy the
tripartitle mortgage. Under the decree
the bonds represented by Calhoun, King
and Spalding and Mr.. Walluch do not
come in until all liens on the property
have been satisfied, and in making this
issue Mr. Wallach was making an appeal
to the court TO provide more assets for
his clients, Just as Mr. Joline for the Cen
trial Trust Co., has done.
The debentures, too come in below these
liens and right along with them come
these bonds and the claims which the
Southwestern will have on the Central in
case it is compelled to pay One-third
share on the tripartitle mortgage.
The question of the rentals on the leased
lines win be settled by the court to-day.
Mr. Conner has been ordered to render to
the court an accounting Of money, in his
possession, and they will probably be dis
tributed by the court--if there are any.
SENSATION LOOKED FOR.
To-day the fun, excitement and sensa-
tions viii come up. Mr. Calhoun has
made his motion for the removal of the
receiver and the appointment of a new
one, and as this is Mr.. Crawfords hobby
he win probably bring the full force of
his eloquence to bear on that point, as well
as on the orders of the district court
made under the reCeivershiD.
If he has any affdavits or ustrong init
nations, or rather positive statements
that he has such have gone out they will
be presented to the court. Mr. Crawford's
affidavit and its appearance will no doubt
be awaited eagerly. The question as to
what figure they will cut in the proceed
ings is an interesting and a lively one No
intimatiOn has as yet been given as to
time he has kept quiet, very quiet indeed
only putting in a suggestion now and then
where he thought it would throw some
light upon the subject.
THE COURT AGREES WITH MIR. JoLINE.
When the proceedings opened yester-
day morning, Mr.. Joline stated the posi-
tion Of the Central Trust Company on the
order of sale of the Southwestern and
Central
when we were advised that the
Southwestern claimed that it was not
1ahia tho TInapfifn ri drarr a1f1
he, 'we were instructed to plead that
the main stem should not be first sold
but that the Southwestern should 90
first
we concede that in view of the fact
that the two roads are so well identified
together that the court might apply the
equity rule applicable in this case, and
that the Southwestern should be held re-
sponsible for fair and proportionate
part of their liabilities"
well, if that is your point said JUS
tice jackson, you needn't 20 any further.
The court is with you on that point and
will grant that order. Now, Mr.. Davies
we will hear from you in regard to the
interest"
Mr. Julian T. Davies, representing the
tripartite bondholders, said that
the interest had twice been defaulted
on.
Seven per cent is the legal rate in
Georgia." he said, ''while it has been
changed to six per cent. in New York.
1t is, therefore, claimed that the bonds,
as they are payable in New York, should
bear interest at six per cent. But we
hold that they are entitled to seven per
cent.
"Your honor will see that the bond is a
contract made in the state of Georgia.
Seven per cent. was the rate both in Geor-
gia and New York when the bond was
executed. The bond bears interest at
seven per cent. per annum from the time
made, and not from date of maturity"
CARRIED THEM IN HIS POCKET
Mr. Davies wanted a coupon TO read
the court, and one was furnished by
Judge Harden
fortunately, may it please the court
Mr.. Davies said, I'VE have a gentleman
in court who carries the coupons in his
pocket Your honor will see that both
the bonds and coupons are payable in
New York. The contract how.
ever, was made in Georgia and should
be governed by the law of Georgia We
are to look TO the law of Georgia for the
performance of the contract. They looked
to the law Of Georgia to determine what
would be the rate of interest after ma.
turity. The assumption was, of course
that II would bear the same rate of inter
est as the legal rate in Georgia when The
contract was executed"
A supreme court case was cited at thu
request of Justice jackson. showing TIM