The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-05-13
THERE HAS BEEN A CHANGE.
No Attorneys Now for Outside Stock
holders Of The Central.

Debenture Suits Now Represent the
Central Railroad and Banking Com
pany-They Did Not Care to Make q
Fight on That Question-A Notion
to Dismiss All the Cases Filed
After the Return Day-A Demurrer
to All Other Cases-The Hearing OF
the Demurrers Set for To-day.
The suits against the Central railroal
on 100000 OF certificates OF indebted
ness brought by the Mercantile Trust
Company and others were called in the
city court yesterday morning, but were
postponed until afternoon.
They were then taken up and, after
some discussion, IL O'Clock to-day was set
for the time when the demurers to the
suits of the Mercantile Trust Company
and Mrs. Anna G. Cam fled yesterday
are TO be heard.
Col Garrard and Hon. Pope Barrow
were prepared to argued the point that a
stockholder in a corporation has no right
to defend a suit in the name of the com
pany when the company itself decides to
enter proceedings of defense.
This, it was expected would be one Of
the most interesting parts of the case,
but from the nature of the circumstances,
as will be seen, this question was elimi-
mated from the proceedings.
MOTION TO DISMISS.
The case opened by the filing Of a mo-
ton to dismiss all the suits filed after re-
turn day. These suits are those Of Gen.
Henry r. jackson for $4,000, w. j. Nor
ton, trustee, s., 500; w. p. Welch, trustee,
s. 600; James White $1,000. John r.
White 81 600, Mercantile Trust Company
S1S7, 400, filed on April 49, This motion
was filed by Harden, West & McLaws,
Calhoun, King & Spalding, and Charlton,
Mackall & Anderson, representing the
Central railroad.
The ground of this motion was that
there had been no proper legal service of
writ, and that the board Of directors had
no right 10 encourage and facilitate per
sons claiming to be creditors of the Cen
trail in instituting suits against the COM
pany for the purpose OF attempting to
subject the property to Judgment lien,
and that the resolution passed by the
directors gave the attorneys no power to
acknowledge service and waive time of
filing after return day.
Mr.. Barrow, who was attorney in the
cases against which this motion was filed.
began an argument against the motion,
but Mr., Charlton objected, saying that
Mr. Barrow had the right to file any
answer in writing, but that the motion
was not open for argument
THERE HAS BEEN A CHANGE"
Col Garrard, representing the Mercan-
tile Trust Company, also objected to the
motion, and stated that when the cases
were set for May y, it was with the I'M
derstanding that Mr. Charlton, counsel
for the Terminal company. was to be
given time to enter pleas and send them
to New York for signatures. Col. Garrard
wanted TO know where those pleas We're.
Things have changed since that time,n
remarked Mr.. Charlton, somewhat ironi-
cally. i represented the Terminal com
pany then, but / now represent the Cen
trial Railroad and Banking Company"
II VIII ask, said Mr. LaWtOn, "that
the names of Harden, West Z McIavs.
Charlton, Mackall ~ Anderson, and Cal
houn, King q Spalding be entered as
counsel for the Central Railroad and
Banking Company
Col. Garrard called attention to the
fact that the suit of the Mercantile
Trust Company was the first on the
docket, and judge MacDOnell said he
intended 10 take them up in their order
and assigned those of the Mercantile
Trust Company and Mrs. Anna c.. Cam
Tor hearing to-day at II o'clock.
A DEMURRER FILED.
A demurrer to the suits of the Mercan-
Tile Trust Company and Mrs. Cam was
fled by Messrs Harden, West q Nc
Laws on the ground that the petitions in
those cases were insufficient in law
wherein to have judgment.
Judge MacDonell then set the de-
murrer to these two cases for hearing to-
day at IL o'clock
The demurrer only states that the pc
titions were insufficient in law, but the
argument may turn largely on facts.
SOMETHING ABOUT THE DEBENTURE.
In 1881 the Central railroad directors
passed a resolution authorizing the issu-
ing Of these certificates of Indebtedness.
on account of the fact that the earnings
OF the road for several years
prior to that time had been used for bet
terments and the purchase of new prop
erty, and during that time no dividends
had been paid. \ certificate OF $40 was
issued for every share of Central stock
ana 80 Tor every share of Southwestern.
These certificates, according to the con-
tract on them, fell due any time after
July, 1891, at the opqion of the railroad
company, provided three months notice
OF the company's intention to pay them
was given. They bore interest payable
semi-annually, in January and July.
Centrals intention to pay these
certificates has never been given.
and this fact will probably be one Of the
arguments used by the Central to show
tnat according to the contract payment
OF the certificates cannot be claimed
HOW ABOUT THE INTEREST,"
The Central has defaulted several times.
however, on the interest due on these
certificates. and Judgment for the inter-
est might be obtained
1t has been said, however, that in view
of the fact that all the certificates de-
posted with the Mercantile Trust Com
pany have been merged into one which
bears the date April H. 1898, the inter
est on this certificate is not collectable. as
II is only due in January and July accord
ing to the contract.
A peculiar phase Of the situation in
this case Is that one Of the attorneys has
deposited his debentures with the Mer-
camille Trust Company under the reor-
gan1zation plan, ana he is now defending
the suit in the name Of the Central
against which corporation his own GER
tiiicates have participated in bringing it,