The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-08-12
ARGUING FOR THE SALE.
The. SeabOaTd Company Injunction
Case Before Judge Falligant.


Lengthy Answers to Mr.. Granger's
Petition by the Attorneys for the
oglethorpe Savings and Trust Com
pany and the ssaboard Company.
Mr.. Changers Allegations Denied
in Toto-He Is Shown to Have Been
Fully Acquainted With All Meas
ures Taken in Behalf of the Com
pany.
Nearly the entire time of the superior
court was taken up yesterday in hearing
the answers of the attorneys for the
/ OglethOrpe Savings and Trust Company
and the Seaboard company to the petition
| of a. o. Granger for a permanent injunc-
ton against the sale of the Middle Geor-
| gia and Atlantic railroad by the former
! company.
a temporary injunction against the sale
was granted by Judge Falligant, which
| prevented the sale as advertised on Tues
/ day. and hearing of answers to the petit
/ ton set for yesterday. Mr.. Granger was
not in the city yesterday, and his attor-
| neys, Messrs. W. S. Chisholm and w. L.
! Clay, asked for a continuance of the case
| until some time next week, on the grounds
that they wished an opportunity to con-
| fer with their client and for time in
which to read the answers of the other
side, which are very yoluminous.
Judge Falligant granted them until
clock in the afternoon in which to read
the answers. The case was taken up at
that hour and the answer of the savings
and trust company was read by Col. Gar
rard of Garrard, Meldrim q Newman and
the answer of the Seaboard company bV
Mr.. 5. B. Adams of Denmark a Adams
The answers are very yoluminous, going
fully into details in answer to every
allegation made by the plaintiff in his
petition, and giving reasons why his
prayer for permanent injunction against
the sale should not be granted.
The answer of the Savings and Trust
! Company, the trustee for the syndicate
loan, asserts that Mr.. Granger is not the
owner of the 2lS shares of stock in the
Seaboard Company as claimed by him.
The books of the company show
that by his request, made through
the Quaker City National bank
of Philadelphia the 2IS shares
OF stock held by him in the pool trans
ferred TO James A Bennett. This was in
June. There has been no transfer of the
stock by Bennett, and it still remains in
his name.
Mr. Granger in his petition to the court
sWears that he is the owner of this stOotn
The answer denies that the Seaboard
| Company requested its stockholders to
surrender to it all the capital stock held by
them in order to strengthen their pledge
for certain loan or that the stock was
ever pledged in this manner The charge
that certificates had been issued by the
/ trustee, representing that the full face
value had been paid in when in fact only
60 per cent had been paid in is denied,
| ana also that the president of the Sea
| board company had been paid for his ser
| vices by the trustee, and that discounts
| had been allowed by the trustee.
! The answer made by Mr.. Adams for
| the Seaboard Company takes up the allie
! cations of Granger in detail and denies
| them in toto, showing where they are
| false or unfOunded. II goes into details
/ to show that Mr.. Granger was kept
| fully informed as to the action of
the board of directors and of the meas
! ures which 1t was proposed to take for
! the advancement of the companys inter
ests. 1t also shows that he was given
| every opportunity to come in on the syn
| dictate loan. both when the certificates
were being issued for par value and after
ward when the discount of 40 per cent.
was allowed, and that he positively re-
! fused to do so.
1t was also shown that President VIII
| liams besought Mr.. Granger to assist him
in securing the extension of the syndicate
| loan and in raising money to take it up,
and that he declined to do so. Letters of
MIR. Granger's, showing his knowledge Of
| these facts, were shown in the
answer. The answer of the Seaboard
| Company states that the discount of
| 40 per cent. was allowed when it
was absolutely necessary to raise money
| for the completion of the road to Coving-
ton, and the financial crisis then prevail
! ing made 1t necessary to raise the money
| in this manner. The money so raised
was $4,000, which enabled the com
| pany to purchase its supplies
! for cash. The statement of Mr. Granger
! that President Williams had been al
| lowed $4,000 for his services was en-
| phatically denied The answer stated
! that President Williams had been al
! lowed 81, 500 in scrip of the syndicate
! loan for continued services during a
! period ranging over twenty-six months,
the cash value of the scrip being esti-
| mated a { 81 ,040.
After the reading of the answers argu-
| ment was begun and was continued until
| 8 O'Clock when Judge Falligant adjourned
| the hearing over till 9 80 o'clock Monday
morning. Messrs. Chisholm and Clay ex-
/ pect to have their client here by that
! time.