The morning news., 1894-09-02
THE WAR OF THE CAR LINES
Judge Falli6ant Declines 10 Appoint a
Receiver for the Electric Railway.

Company and the Palmer Hardware
COmpany-A Copy of the Contract
Produced in Court-Messrs. Harri-
man and Logan Put Through "a
Severe Cross Examin alton. ,.-
The hearing of the petition for<the ap-
pointment of a receiver for the Electric
Railway before Judge 4 hnigant yester-
day morning, resultsk in a victory
for the railway company. Mr. J. n. Har-
riman was shown to have been
largely interested in bringing the appli-
cation for the receiver.
The interesting portion Of the proceed
ings was when Mr.. Walter G. Charlton,
counsel for the railway company, sue
ceeded in eiciting from the witnesses, in
cluding Mr. Hartman, that an agreement
existed whereby the latter agreed
20 indemnify the petitioners, and
q copy of the contract was produced
This was considered as plain evil
dence of a covert attack upon the
railway company on the part OF its rival,
the City and Suburban, and an attempt
to cripple its operations by placing it in
the hands of a receiver.
THE COURT ROOM CROWDED.
The court room was well filed when
Judge Falligant entered, and the court
was called to order. Hon. Pope Barrow
represented the petitioners. Mr. p. j.
O'Connor represented Mr.. Elton A.
Smith, who filed an intervention in the
case as the owner OFFS 900 of bonds of the
Electric Railway Company. Some sur
4.
that Mr. Smiths intervention had been
Withdrawn, leaving the suit for the re-
ceiver entirely in the hands of the origi-
nal petitioners, the Sloss Iron and Coal
Company, the Palmer Hardware Com
pany and McDonough g. Ballantyne, and
one intervenOr, the Tennessee Coal and
Iron Company. The intervention of Mr..
Hull, the only other bondholder who in
tervened was withdrawn the day before.
The railway company was represented
by Mr.. Charlton, Mr.. w w. Mackall and
Mr.. S. B. Adams. Capt II. G. Cunning
ham was present as the representative of
the holders of the Savannah Street rail
way bonds. President Collins and several
of the directors of the Electric railway
were present, as were also several other
large bondholders of the company and a
number of attorneys who were interested
in the probable legal developments.
WHY A RECEIVER WAS WANTED.
Mr., Barrow opened for the petitioners
by reading the petition for a receiver, the
features of which the public has already
been made familiar with through the
MORNING NEWS. Mr. Barrow then Of
fered an amendment to the petition aver
ring that the Electric Railway Company
had unlawfully increased its capital
stock to q blank number of shares, the
exact figure being unknown to him, con-
trary to its charter, which limited its
capital stock to $3.50, 900, and had issued a
second mortgage TO the amount of $500 900
which had not been properly signed or
recorded. Mr.. Barrow also gave verbal
notice of an Intervention on the part of the
Southern Electrical Company to the
amount of S3S119.
The answer of Mr.. Charlton in behalfof
the railway company covered all the
points touched upon in the petition and
was spicy and interesting in some of its
illusions. With reference to the bill of
McDonough & Ballantyne it stated that
the company had had dealings with the
firm for the last three years, aggregating
over 81 200, and that the present bill had
not been audited and passed for payment
because of a difference of an item of 81 3S
claimed by the defendant.
In reference to the claim of the Sloss
Iron and Coal Company the answer stated
that the account is in dispute, the rail
way claiming that the coal delivered to it
by this company was shot in weight, and
inferior in quality which it was the
privilege of the railway to have passed
upon by jury. The Palmer Hardware
Conpany's bill, it was stated, was of re-
cent date, and which the defendant is
willing TO pay.
The charges of insolvency are denied,
and the answer asserted that the com
pany is a solvent going concern, capable
OF administering It's affairs aud conduct
ing its business without the aid of the
court, and particularly without the assist
Rnce Of its rivals in business, who were
charged with the responsibility of insti-
eating the proceedings for the purpose of
embarrassing il by false reports as to its
condition.
THE INSIDE OF IT.
Mr.. Charlton's summing up made inter
esting reading. After referring to the
antiquated and Inadequate equipment of
the Coast Line and City and Suburban
roads before the Electric railway entered
the field, the answer says:
up to this time the said Parsons en-
loyed monopoly of transportation to
IhunderbOlt, a resort for the people of
Savannah during the heated term, and
being beyond the reach of municipal con
troll, charged such rates and gave such
service as he saw fit This defendant
finding the rate fixed by said Parsons to
be SO cents for the round trip, at once
hxed its own rate at Is cents, which was
q fair compensation for the service. and
thus compelled the said Parsons to forego
the extortionate profits he was making.
BY this attention TO the interests of the
travelling public this defendant incurred
the bitter hostility of the said Parsons
and his confederates, the more intense
IN that this defendant continued to give
better service than its competitors.
Realizlng that this defendant was sus-
tained In its efforts by the general public.
the said Parsons, through his agent, the
said Hartman, undertook to effect a con
solidation with this defendant, the terms
OF which were virtually agreed upon, but
were finally rejected by the said Parsons.
who insisted on listing his holdings at
sum grossly in excess of their
value. This defendant declined 10
accede to his ineQuitable terms.
and the said Parsons thereupon, through
his said agent, set upon foot a series of
schemes and tricks designed TO compel
the acquiescence Of this defendant or
ruin H. Fares were reduced TO a point
where there could be no profit. the said