The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-25
ABOUT THAT $500, LOAN.
Receiver Conner Examined Before a
Master in ChalCeTy.

Inc Exam nation commences at Ine
Appointment of a Receiver, and
Leads Up to the Necessity for Bor-
rowing the 5000, 900, and What it
Was Used For-The S1S,5oo Claim
of Speyer & Co. Dwell Upon at
Length by Attorney Crawford.
Receiver H. NJ Conner was examined
as witness before Master in Chancery
George w. Owens yesterday by Henry
Crawford ESQ. attorney for the Rich
mond Terminal i'm regard to the facts re
lating to the execution of the orders Of
the district court putting into effect GER
tain contracts in regard to the admins
tration of the Central railroad property.
The examination took place yesterday
afternoon at o'clock in Mr.. COmerHs
Office Attorneys Garrard for the reor-
ganizatiou committee, Cunningham and
Denmark y Adams for the Central and
Henry Crawford for the Terminal, be
sides Messrs. W. G.. Oakman,
John A. Rutherford and Judge
Harden were present The in
terrogations of Mr. Crawford were
upon facts in regard to the details Of how
these contracts had been carried out, and
especially the one authorizing the $j00,00
loan with the Hollins syndicate, of which
a detailed statement was called for by
Mr. Crawford as being included in the
evidence he desired to obtain to present
in the hearing of the Terminals motions
before Judge jackson on May .
The examination included only state
mcnt of facts, as the opposing attorneys
objected to inteuogatiOns on legal points,
and was in nowisc unusual or sensational
as some people expected it would be.
THE FIRING BEGINS
Before Mr.. Conner was sworn Col. Gar
rard. on behalf of the Hollins committee
and Mr.. Cunningham. on behalf of the
Central objected to the taking of any
testimony not stipulated, rcScrving all |
rights of exception, particularly under |
section no of the Revised Statutes OF the |
United States with which they said the !
parties had not complied.
Having been sworn, Mr.. Conner was !
asked by Mr.. Crawford to state his name |
and residence, which he did. A number |
of intewogatiOns were then put to him in |
regard to his appointment as receiver /
under the bill applying FOR the appoint |
mcnt of a permanent receiver, which had !
been drawn it wins suggested, because |.
there was some legal defect in the OTigi- |
nal ROwena Clarke bill, for the purpose |
indicated.
Mr.. Conner was asked by Mr.. Crawford |
TO file with his deposition a copy of the |
letter from Judge Spcer, dated June -, |
1892. in which it is said Judge Speer |
stated that he would like to turn the |
property over to the stockholders again |
as early as possible.
The interrogations were, in a great |
measure, relative to dates upon which the |
various transactions referred to had Ia |
ken place, and in all his questions with |
regard to dates, Mr.. Crawford showed a
strong desire to get them exact and cor
rect.
THE $500. 900 LOAN.
The examination took rather wide |
range, Mr. Crawford dwelling upon the |
details with regard 10 the appointment of |
the REORGANIZATION committed the plan of |
reorganization proposed which had first |
been rejected by Mr.. Conner and accepted !
after il had been FemOdelcd and the OK |
change offered for. same of the securities |
advanced and especially the advertise |
ment of the plan which had been APP
proved by the directors and the com
mittec.
All this was preliminary leading up to
the examination in regard to the 5000 900 !
loan contracted with the Hollins syndi-
cate. which was Of special interest to the
Terminal people. Mr. Conner was asked
why he had negotiated this loan to which
he replied that he wanted to pay certain
amounts of the outstanding indebtedness
Of the Central, and applied for an order
authorizing him to borrow $500, 900 in case
he couldn't get 81 100000, which he first
asked for 1t was later decided to
make the loan $780, 900 on the
idea that the equipment notes
would afterward be taken care
of. 1t developed in the questioning that
$500, 600 of this money was obtained in
cash, 500 600 in demand notes of the Mer-
camille trust and 100000 in a demand
note held by the Southern Bank were
merged into the syndicate loan aud tbat
500, 600 was held to pay the coupons on
the collateral bond held by the Central
Trust Company due May /.
The disposition of the 5000 900 in cash
was thesneXt subject of Mr.. Crawford's
lnteTrOgatiOnS, and an itemiZed state
ment of the expenditure OF $4,000 of the
money was presented. The balance 500
600 had been merged in the general funds
of the Central and used to pay equip
ment notes, for rails and other similar
expenses.
sPEYER a CO.'S CLAIM.
Mr.. Crawford then asked minutely in
regard to the $lS500 paid to Hollins &
Co. by Mr.. Conner under order of the
court This amount was to pay a claim
Of Speyer 4 Co. which had been taken
up by the HOllins syndicate, TO the pay
ment Of which it seems MIR Conner had |
objected until ii was ordered by the |
court Mr.. Conner was asked for q state
ment Of the itemized bill as presented by !
Speyer & Co., but he said he could not !
give it except on information as he had |
never seen the itemized statement.
At this stage the proceedings were ad-
Journed until this morning at 70 o'clock, |
when they will be continued
Mr.. Crawford will probably confne !
himself to facts in all his interrogations. |
as other questioning is objected to. The |
object of the examination, as stated by |
Mr. Crawford, is to secure evidence to be |
used IN the arguments on the motions in |
PRODUCED before Judge jackson asking the |
discharge of the receivership and the an !
nulment of the contracts made under the !
appointment by the court. 1t is the object |
OF Mr. Crawford to procure evidence. if !
possible, to show that the borrowing of |
that 100000 was unnecessary and I'M
called for; that the order of the court
authorizing it was improper, and that it
should be Cancelled.