The morning news., 1894-09-02

the suit, but not McDOnOugh 4 Ballan-
tyne. He said that he placed his claim
in the hands Of O'COnuOr & O'Byrne,
having decided that the best means of Sc
curing his money was TO enter suit for
a receiver. He met Mr.. Hartman at
Barrow & Osborne's Office, and suggested
to him that as Mr.. Parsons was large
stOckholder in the Sloss Iron and Coal
Company, Nh. Hartman should secure
the claim, and he agreed TO do 50. Mr..
Logan said the contract was written by
him in Barrow * Osbornes office, and
was signed there by Mr.. Hartman.
Mr. Logan denied that he had been en-
ployed by Mr. Hartman TO get up the
suit.
Judge Falligant: "Do I understand
that these claims are 10 be paid whether
this suit succeeds or uot}'
Mr.. Logan Il stand by the contract"
Mr.. Logan said he understood
Mr. Hartman had communicated the
contract to Mr.. Parsons He acknowl-
edged that the claim of the Sloss com
pauy had been contested by the Electric
Railway Company on account Of short
age in weight and Inferior quail
ity Of coal and further that
payments on account had been
made since then by the company.
Mr.. Logan acknowledged that he had Mr.
Harriman's security for his claim when
tiOn as to the security of his claim, MIR.
Logan said he did not know whether Mr..
Hartman was responsible party or not.
This created some laughter.
Mr.. H. W. Palmer was the next wit
ness. He said he was first approached by
Mr.. Logan about the last of July in re
gard to the account of the Electric rail
way. Mr. Logan told him he was going
to get his money. Mr.. Palmer said he
did not wish to push a home corporation,
and he asked Mr.. Logan to hold
of and not do anything without further
consulting him. He did not see Mr..
Logan again until last Saturday, when he
came III and declared that he was going to
throw the road into the hands of a re
Ceiver and that if they went in with him
they would get their money. Mr. Palmer
said he knew nothing of Mr.. Harriman's
guarantee and had never seen the paper
until he came into court.
END OF THE TESTIMONY.
No other witnesses were introduced.
Mr. Barrow asked no questions. He said
he would put in an affidavit to the effect
that the bill of the Southern Electrical
Company against the Electric railway
was on a contract which had not yet been
completed Mr.. Charlton then announced
his case closed.
MIR. Barrow, after consulting with MIR.
OCOnnor, announced for himself and Mr.
O'Conuor in answer to the notice of sub
poena duees tecum served upon them that
they had no such document in their pos
session, knew nothing of it and had never
heard Of it until they had been served
with the notice. Mr.. W. w Osborne,
Mr. Barrow's partner, answered to the
same effect, and said he knew
nothing of the paper until
Mr., Logan sent some sort of a contract 10
him day or two ago. Mr.. Barrow said
he had no evidence to introduce, and
opened for the petitioners by reading the
law relating to the appointment of re-
ceivers upon the petition of three unse-
cured creditors, and cited authorities
reading the law upon receivers at
some length, MIR. Barrow en-
deayored to show the insolvency of
the Electric railway by the affidavit
made by President Johnson of the City
and Suburban railway, giving an estimate
of the value of its property. Mr.. Barrow
placed the value of the property under
this estimate at S203 600. Including all the
issues Of bonds Mr. Barrow figured out
that this 100000 Of assets was encum-
bered with a bonded debt of $500, 900 be-
sides outlying debts. This, he contended,
was alone sufficient evidence of its in
sOlvency, and the necessity of the ap-
pointment of a receiver. BY the process
of deferring payment of coupons indefin-
itely the rights of junior mortgages and
lienors were being injured he claimed,
and the fact that such a step was being
taken was an indication of the necessity
of a receiver
MR.. BARRow's ARGUMENT.
Mr.. S. B. Adams answered MIR. Barrow
in behalf of the defendant Mr.. Barrow
made a splendid summary of the legal
points of the case. He showed that the
law under which receiver was asked for
was regarded with disfavOr by the best
authorities, and that the higher courts
had advised great discretion in acting
under the law. Mr.. Adams quoted the
author of the law to show that its inteu-
tion was not such as the opposing counsel
had sought to give it.
Mr., Charlton spoke exactly q quarter
of an hour, but all who heard him agreed
that 1t was one of the best fifteen minute
speeches ever heard in the court house.
MIR. Barrow in his conclusion made an
ingenious argument in which he con-
tended that counsel of the other side had
entirely misunderstood the facts in the
case and had received false impression
OF the merits of the case. He contended
that Notwithstanding all that had been
said on the other side, his clients had no
other means of securing the payment of
their claims than by the appointment of a
receiver.
THE JUDGES DECISION
Mr. Barrow had hardly taken his seat
before Judge Falligant delivered his de-
cisiOn. He said: gentlemen: AS re-
gard it the highest duty of a chancellor
TO conserve and not TO destroy the inter
ests of property under his Jurisdiction, 1
do not think the ia Is presented Justify
me in making what l should consider
remorseless assault upon the credit of
this concern. / shall, therefore, decline
TO grant the prayer of the petition" ."
Judge Falligant spoke in a low tone,
and the room was very quiet while he
was speaking. AS soon as he concluded
there was buzz of voices, and the gen
tlemen nearest President Collins and the
counsel of the Electric railway hurried to
congratulate them The case was the
talk of the town, and the ques-
tion most frequently asked was what
would be the next move on the part of
the Electric Railway Company. Presi-
dent Collins said he thought he had good
grounds for damage suit against Mr..
Hartman, but did not say if any suit
would be entered.
Mr.. Hartman, in speaking, said to a
MORNING News reporter that his only
object in guaranteeing the claims of the
Sloss Company and the Palmer Hardware
Company was TO enable the Sloss Coal
and Iron Company, in which his friend
Mr.. Parsons is largely interested. to col
not Q ~. ~