The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-01-06
THE SALE OF THE CENTRAL.
The Date Not Definite, But Ii May Be
Demanded as Early as Sept. 1.

Wind Up All the Litigation Now
Pending-R REORGANIZATION Has Taken
No Definite Shape as Yet-A Big
Fight Anticipated on the Savannah
and Western OBSERVATION-DISCLOSURES
Conner Now In New York-Chances
For the Tybee Railroad.
Capt. II. c. Cunningham and Mr.. A. K.
Lawtou, Jr, attorneys for the Central
railroad. returned from Washington last
night. where they have been to appear
before Justice jackson with regard to
several matters which came up at Thurs
days hearing.
Receiver Conner, however, did not re-
turn, but went on TO New York city,
where he expects to meet Co-receiyer
Hayes. He expected to have met Mr..
Hayes in Washington, at the hearing, but
the co-receiver had matters which de-
manded his attention in New York, and
was unable to be present. He viii prob
ably be with Mr.. Conner when he returns
to Savannah some time during next week.
MIR. Hayes, it is said, expects to make at
this trip months stay in Savannah.
The hearing before Justice jackson was
an unusually short one considering the
number of matters that had TO be brought
to his attention and passed on. II beganat
$3.50 O'Clock Thursday morning and was
concluded at 1880 O'Clock.
NO DEFINITE DATE FOR TEE SALE.
Mr.. I.awton was asked last plight if it
was the general opinion that the road
would go to sale on the date set by the
court.
There has been no definite date SET for
the sale of the property" he replied. III
L, a. ha4 ant I uunnr
the order OF the court, is the earliest date
at which the Farmers Loan and Trust
Company, the trustees under the tri-
partite mortgage, can demand a sale 10
satisfy that mortgage. That does not
mean, by any means, that the road is 10
be sold on that date, and IN TACT,
the general opinion is that the property
will not go to sale for some time yet, per
haps not for eighteen months or two
years, as there are many matters now
pending in the litigation before the
courts that will have to be settled and
Strengthened out before the property will
be put on the block.
MAY BE IN THE HANDS OF RECEIVERS FOR
SOME TIME.
U"Sept. is the earliest date at which
the trustee can demand a sale to satisfy
the tripartite mortgage, but it is under
stood that they are perfectly willing to
of litigation can be settled. So the prob
ability is that the road will remain in the
hands of the receivers for some time yet.
THE trustee is allowed to demand a
sale on that date or any time thereafter,
provided the tripartite indebtedness has
not been paid. If the money is rendered
however, on the very day Of the SALE at
any time before the property is sold, the
sale would, of course, be stopped.
There are good many matters to be
cleared up yet before the sale. An in
ventory of all the property owned by the
road and all its debts has to be- taken by
the master and filed in the court This
will require some time.
REORGANIZATION INDEFINITE AS YET.
No plan OF reorganization has been
talked of as yet, but the road will undoubt-
eddy have to be reorganized There is no
question as to that among all interested,
andif there were any plan of reorganiza-
ton on foot which could be shown to the
court was favorable to all the interests,
and would probably succeed, there
is much doubt as to whether the
court would allow the trustee to
proceed with the sale even
on the date at which they have been al
lowed to demand it, if it were shown that
a sale was unwise at that time. All in
terests are agreed that reorganization is
the only course, and some arrangement
may be made for it within a short time"
Would the payment of the interest on
the tripartite bonds have tendency to
stave of the salel" was asked.
i'The receiver is very much hampered
at present and has no money at hand
with which to pay off the interest. But
that would have no effect so far as the
decree of the court permitting the trustee
TO demand the sale Sept. l is concerned,
as 1t provides that the sale may take
place then unless the whole Indebtedness,
interest and principal, is paid"
THERE WILL BE FIGHT ON 1T.
Couldn't the receiver pay this interest
If the money asked from the Savannah
and Western railroad were paid him."
That's another matter" Mr. Lawton
replied. 1.-THE first thing is to get that
money, and in the event that it should be
ordered paid to the receivers, the tripar-
tite interest might be provided for. But
there is going TO be big fight over that
petition, and the bondholders of the Sa-
vannah and Western railroad are goingto
Resist IL at every point.
"The question as to how much is due
the receivers of the Central railroad by
the Savannah and Western has been sub
mitted to the master, Mr.. George w.
Owens, and we will begin as soon as pos
sible, to take testimony before him with
regard to it. His report will be made to
inc COuIb, anu bue nearing Oh bu6 peJlblOl
will come up March /. The payment of
this amount viii be fought by Messrs.
Calhoun and Wallach for the bondholders
of the Savannah and Western, as the de-
Tense on the part of the trustees, has been
delegated to the bondholders."
OTHER MATTERS CONSIDERED.
Among other matters considered and
passed on by Justice jackson was petit
rion from Receiver Conner asking TO be al
lowed TO purchase 1900 tons of rail to be
laid on the Southwestern railroad, to be
paid for out of the earnings of that road.
Justice jackson authorized the purchase
of the supplies asked for, for this purpose.
The representatives of the tripartite in
terest decided not to ask at this time,
that the money earned by the Southwest
ern be applied to the payment of the in
terest on that debt, and that money will,
for the present, remain in the hands of
the receiver.
CHANCES FOR THE TYBER RAILROAD.
AS reported, the receivers of the Savan-
nah and Atlantic railroad were author
lied to issue certificates TO the amount of
$4,000 for the purpose OF repairing that
road. The question, however, in which
Savcnnahians are most interested is
whether the rebuilding of that road will
begin at once. Mr.. Conner was asked
about the matter before he left Sa-