The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-05-11
PUT INA RECEIVERS HANDS
The Macon GaSlight and Water Com
paly Hard Up.

The Corporation Failed to Pay It's In
terest Obligations on May IA
Holder of 5000 of Third Mortgage
Bonds Brings the Proceedings-The
Plaintiffs Attorney Declines to Re-
ceive the Interest Money When Ten
dered Him to Drop the Suit.
/ Macon Ca. May 1O.-At a late hour
Wednesday night United States Marshal
| Frank Leverett was appointed temporary
receiver Of the Macon Gas Light and
] Water Company. The company owns the
only water, gas and electric light system
/ in the city, and has a total Indebtedness,
bonded and otherwise of over 100000.
/ The application for a receiver was made
! so late Wednesday night that only few
knew of it until this morning. On the
! positive assurance of counsel for the com
pany that the money was on hand to pay
off the claims of Rufus H. Carswell of
Chattanooga, the applicant for the re-
ceiver, and that the receivership would
be dismissed by Judge Speer this morning,
only bare mention of it was made in the
| Telegraph. This morning, however.
Judge Speer declined to dismiss the re-
! ceivership and appointed T. D. Tinsley
receiver, instead of Marshal Leverett, and
set the time for the hearing on the bill
/ and for a permanent receivership for
May Is.
GREAT SURPRISE.
The receivership was a great surprise
to the people of Macon, as nothing of the
kind was anticipated even by the stock
holders, who had been in session since
Tuesday. At this meeting a committee
was appointed to prepare a plan for the
adjustment of the company's liabilities.
This afternoon meeting of the local
bond holders was held and resolutions
passed stating that those taking part in
the meeting would not intervene in the
bill for receiver and requesting all
others not to do so.
Marshal Leyerett was appointed tenn
porary receiver by Judge Speer. on bill
| brought before him by Messrs. Alexander
Proudfit and Marion Erwin, attorneys
for Rufus H. Carswell, of Chattanooga,
Tenn, who formerly resided in Twiggs
county, Georgia. United States Marshal
| Leverett and Attorney Marion Erwin
| served Judge Speer's order on Arthur E.
Boardman, president of the Macon Gas
Light and Water Company. Mr.. Board
| man intended leaving last night at -
O'Clock for New York on business con-
n0Cb6O WIFI Ll6 dIIdlfS OF JQ6 company,
but his departure has been delayed by
the surprising and unexpected temporary
| receivership.
CARswELL's BILL.
The Carswell bill is quite voluminous,
and alleges, among other things, that from
| the company is due the plaintiff $3.50, which
represents the semi-annual interest of
per cent. on s., 900 of third mortgage
| hopdc Of he II, ~,
well, and which interest was due May l,
| and remains unpaid.
| Prior to May the company sent out
notices to the second and third mortgage
| bondholders that the semi-annual interest
| due on these bonds May would not be
| paid at that time owing to a lack of ready
cash. The amount of the second and third
mortgage bonds is 1886, 600, which bear
per cent interest per annum, so the
amount Of the semi-annual interest de-
faulted May is S1l,550.
There are Sl15, 000of first mortgage 6per
cent. bonds, but the interest on these was
not due May l. OF the 81, $50 interest
that matured May /, $3.50 is due Mr..
| Carswell The first second, and third
mortgage bonds of $500, 900 are on the en-
tire gas, electric and water plants of the
company, which property is estimated
| OF be worth considerably over
81, 100000. When the bondholders
received circular from the officers of the
company informing them that the inter,
est would not be paid May /, and giving
the outline of a proposed plan for reor
ganization, the bondholders met at Macon
and have held several sessions during the
past few days, at which the affairs of the
company were fully discussed.
AN OFFER TO PAY CARswELL.
On being served with a copy of Judge
Speer's order, President Boardman i'm
mediately consulted with the company.
attorney, Claud Estes, and the result was
that Mr.. Estes at once sought out Marion
! Erwin one of Mr. Carswell's attorneys
and rendered him in cash $3.50 the amount
of interest due on the Carswell bonds
and Mr.. Estes further stated to MIR Err
win that he was ready to pay whatever
court costs or attorneys fees Judge
Speer might assess, and requested thai
the bill might be dismissed instanter last
night. The tender of the money and the
general proposition of Mr.. Estes was MOI
accepted, however, by Mr.. Erwin, as uu
der the rules of the United States circuit
court a case cannot be dismissed by con
sent except in open court and on approva
of the judge. Therefore, the matter wa:
not settled last night, and the United
States marshal remained in charge of the