The morning news., 1894-01-02
TRYING TO GET EVEN.
The Central Wants the Savannah and
Western TO Repay it 500, 900.

WIZ ASK bne OouTV TO OEueF re-
oeivers Conner and Lowry to Is
sue Receivers Certificates to the
Central for That Amount The
Petition May Be Strenuously
Fought BY the Savannah and
Western Bondholders, As the Ger
tihcates Would Be a First Lien.
A Motion That the Southwestern
Will Fight to the End.
There is an intervention which has
been recently filed in the United States
circuit court in the suit Of the Central
Trust Company of New York VS.. the Sa-
vannah and Western railroad which will
no doubt bring about an interesting fight
when it comes on for a hearing next
Thursday.
The intervention is filed in the name of
Receivers Conner and Hayes, OF the Cen
trail railroad, and asks that the court order
Receivers Conner and Lowry, of
the Savannah and Western railroad,
to issue receivers certificates
to the amount of SOL ,OS0. .S5
to reimburse the Central railroad for
that amount which has been expended
out of the general fund of the Central
Railroad and Banking Company to the
advantage of the properties of the Savan-
nah and Western Railroad Company.
That amount includes S429, T24.91, which
is the amount of the deficit of the earn
lngs of the different roads comprising the
Savannah and Western system, from the
cludes the Sl4S, ,2l606, which the rebuild
ing of the Coosa tunnel cost,
besides the purchase of rails
and other supplies used on the Savannah
and Western.
The balance, s271 1854 Isl the amount
which has been paid out by the Central
on the bonds and car trust notes of the
different lines comprising the Savannah
and Western.
The petition asks Receivers Conner
and Lowry be ordered to repay these
amounts to the receivers of the Central
railroad with interest, or that they be re-
quired to issue receivers certificates for
the amount which can be negotiated by
the petitioners.
EFFECT OF SUCH AN ORDER.
The effect of such an order, if
granted would, of course, be to diminish
the value of the bonds of the Savannah
and Western and the lines composing it,
as these certificates would constitute a
first lien on the property. The property
is bonded for more than $l0,-
O0O,OOO now, on which the
Centrars Endorsement has been declared
valid, This amount is about all the prop
erty can well carry, if not considerably
more
The receivers ask that the Farmers Loan
and Trust Company, of New York, as trus-
tees under the Rome and CarrolltOn, the
Columbus and Rome, and the Columbus
and Western mortgages and the Central
Trust Company as trustee under the
Chattanooga, Rome and Columbus mort
gage, be made parties defendant to the
suit The bondholders will, no doubt,
make strenuous fight against the petit
tion being granted, as the property as it
stands at present will not realize the
amount of its bonded Indebtedness.
The petitioners are represented by
Messrs. LawtOn and Cunningham, and
Mr.. Julian T. Davies, attorney for the
tripartite bondhoders. who will of
course, want to see the certificates issued,
as that would probably mean that the
past due interest on these bonds will be
paid. MIR. Pat Calhoun and Mr.. Leopold
Wallach, for Messrs. Brown, Borg and
others, will appear for those holders of
Savannah and Western bonds to oppose
the granting of any such order.
THE soUTHwEsTERN's FUND.
Another matter of Importance to come
up Thursday is the motion of the Farm
ers' Loan and Trust Company that the
money now in the hands of the receivers
of the Central, which they had intended
to ask the court for in order to pay the
Southwestern, it having been earned by
that road. be applied to the payment of
the past due interest on the tripartite
bond.
This motion will of course be resisted
by the Southwestern. The equity
of the petitioners, of course,
lies in the fact that third of the tri-
partite debt, together with interest, has
been saddled on the Southwestern, and
now that the receivers have money in
hand which represents the earnings
of that road, they want to
have it paid on the interest due, instead
of going TO the Southwestern Railroad
Company.
Mr. Frank II. Miller, of Augusta, will
appear to oppose this motion in behalf of
the Southwestern. Altogether, it seems
that Thursdays hearing may be produc-
tive of some very interesting develop
mentS