The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-06-29

Judge Gresham's was reversedF'
Mai Bacon said that the principle had
not been reversed as it was contained in
the decision Of the United States supreme
court
"By taking possession Of a road re-
ceiver does not become assignee
| That's the principle | refer to.
1t comes under this principle that
not only the proceeds of the leased
! property should go to paying the rental,
but that even the proceeds from the prln-
! cipal itself should go to the paying that
rental Alarge part of this 100000 had
been made since the South
property turned loose. We simply
! asked that the net revenues of the prop
erty be turned over by the court as pay
ment on the rental, and maintain that
| that the p rinciple l lay down has not
! been reversed. beg your honor to make
| the distinction between the net earnings
| from the property under the control OF
| the Central and under the receiver of
| this court"
TO BRING IN THE ACCOUNT.
Justice jackson then requested the re-
ceiver to bring in the accounts of the
! Southwestern in the morning, said he,
"Please have the receiver report to us
in the morning how much has been paid
the Southwestern and how much is due
and what the net earnings have been.
This report will be brought in here In the
morning and we will then decide upon
that question"
TO CUT THEM LOOSE.
Mr.. Miller wanted the accounts of the
Augusta 81 Savannah brought in and Mr..
Clifford Anderson talked for the Eaton
ton branch
Mr.. Jno. Peabody of Columbus wanted
fbo vaonafxrar, II, 9tYutnfad IN nav the
of the Mobile & Girard.
"Does your lease expire on defaultp'
asked the court.
Eyes, sir" was the reply.
The court then passed an order direct
ing the receiver to tender instantly to
every lessor whose road is not paying
more than operating expenses q surrender
of the lease. He also modified the order
placing the road In the hands of re-
ceiver to this extent, called for the ac-
counts of all lines, and said he would
decide to-day which he would keep and
which he would cut loose
Mr.. Calhoun didn't see why they
should not have all these properties sold
together Il have some views, said he,
"to present at the proper time"
TO TAKE POUND OF FLESH.
Mr.. Davies said he represented cred
| itor who had prior claim TO the earn
ings of the Southwestern, as the interest
| had not been paid on the tripartites.
with respect to the accumulated
! funds in the hands of the receiver" said
Mr.. Davies, Il see no reason why this in
terest on the tripartite bonds should not
be paid at once"
Your lien is of course prior one" said
| Justice Jackson, but the court can't
shut its eyes to the fact that there are
importang securities, bonds and deben-
! lures which must be redeemed and pro
tected. 1t will not be hard to make you
wait. Your securities are as good as
United States bonds. You should no I
press your claim too closely and try to
gobble up all the funds in the hands of
the receiver. If you take your pound OF
flesh you draw blood from the funior Sc
curity, holders. Other securities
are at stake and in danger
and it, will take the bonds
in the hands of the receiver to take care
of them. You've got an interest in a
security and property that ought to
bring you all together and make some
arrangement to reorganize and protect
! these unsecured creditors. You certainly
have got the prior claim on that fund"
THE NJ. AND E. SINKING FUND.
Mr. Charlton called attentionto the sink
ing fund of the Montgomery and Eufaula
under the cross bill to take charge OF
that fund.
Mr. S. B. Adams for the Central said
that there ought not to be at the instance
of Mr. Weed, this change of trustceship
MIR. Adams, the trustee is insOlvent,n
said the court. "The Central is not in a
position to hold this fund, and if the Cen
trail wishes to remain trustee under this
fund, let them tender a bond here to-mur-
|, I H.
ing on the receiver, but the road is in
solvent and not fit to be trustee for this
fund, and unless they can tender this
bond here the court will appoint another
trustee.
THE p. II. q W. c. COMES UP.
Mr. Charlton then asked TO bring NJ
the question with regard TO the PORT
Royal and Western Carolina railroad. He
explained how the Central obtained pos
session Of that road and said that Judge
Simonton had held that both that and the
P. II, & A. were improperly In the hand:
of the receiver
Judge Simonton has appointed q re.
ceiver for this court of the p. X. q w
c.. and we come here asking this court tt
turn this property aloose and let us gel
hold of it,"
Mr. Conner had been appointed receiver
In Georgia, subject to the appointment
maze Dy Judge SlInOntOn IN South CarOl1
ma. Judge Simonton had appointed Mr.
Cleveland and Judge TompkinB presented
an order to Judge Speer, directing tht
appointment Of Mr.. Cleveland in Georgia
as well.
Justice Jackson was Of the opinion thai
Judge Simonton s order shonld stand, and
he ordered that the appointment Of Mr.
Cleveland extend over the whole proper
ty.
MR. CRAWFORD HAS A WORD.
Mr. Crawford then made suggestion
10 the court. "While the information OF
Mr.. Conner" he said, 'may give tn,
court some idea OF the facts 10 seems L
me the reports which Mr.. Conner will
make viii not be sufficient 10 enable the
court to arrive ut q decree ask the
court 10 require Receiver Conner 10 give
also a statement Of tho cash money on
hand as that must be known before the
amount that Is duo for rentals can be
properly appOrtioned. ! would also ash
that he make q statement Of what he owes
for supplies and equipments"
The receiver was instructed % prepare
and present these statements to-day
and Mr X y Turner waB told ~ draw
the decree and present ~ 70 the court.
70 REMOVE TIE RECEIVER
Mr. Calhoun then addressed the court
~ the matter contained " his bin, ask
King tbe removal " the receiver
Justice Jackson a4id, however 10 whs
too hot ~ ~ into any argument ~ thai