The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-08-28
ITS INSOLVENCY DENIED.
The Electric Railway People TO Fight
The ReCeiVeTShip MOVememelt.

The RCCeiTeTShip MOVememelt.
Some Speculation Made by Them az
to What Instigated the Suit-That
sond Sale Brought UP as an In
stance-The Course to Be Pursued
Not Yet Determined On-other Inter-
ventions Filed Yesterday-Claim
There Has Been No Default.
The suit against the Electric Railway
Company for Injunction and receiver
crested considerable talk yesterday, and
there was much speculation as TO what
called it forth,
Those most closely connected with the
road and allied with its present policy
and management, while they were not in
clined TO talk very freely at present, have
some rather interesting views on the
subject. They limited yesterday that the
fight made on them by the City and Su-
burban Railway Company was to some
extent responsible for it.
An INSTANCE CITED.
One Of them remarked yesterday, "You
know some bonds of the Electric Railway
Company were sold not long ago at IS,
which was twenty points below the mar
ket price at that time. These bonds, to
the amount of $4,000 face value, were
sold for August delivery, and SO, 900 more
were offered at the same price but after
ward the sale was repudiated al
though the offer had been accepted. 1t
may be that an attempt will be
made to hold the seller to this trade, and
it is very evident that there was a neces-
sity for doing something that would de-
press the price of the bonds if there was
any legitimate way of doing it. So it
looks very much as if there was a Niger
in the woodpile' somewhere"
THE CLAIM OF INSOLVENCY DENIED.
In speaking of the creditors who brought
the suit and their claims against the road,
it was stated that the claim of MELON
ough X Ballantyne was only for S57. 80,
that of the Palmer Hardware Company
SIG, while the account of the Sloss Iron
and Steel Company whichwas putat $3.50,
was a claim which was disputed by the
company. The insolvency of the company
was denied, and it was stated by the same
authority thai while three unsecured
creditors could bring a DILL for receiver
against trader, it is not believed that
the law applies TO such corporation, and
hard fight will be made to prevent re-
ownership being allowed by the courts
on the grounds alleged in the bill.
AHARD FIGHT TO BE MADE.
"Why the idea, " he said, "of an appli-
cation being made for a receivership
against such a large concern simply be-
cause some of its bills are not paid on the
first of the month. That strikes
me as rather fiimsy ground on which to
bring bill for an injunction and a re-
ceivsr If that were the law one man
could close up and sell out another when
ever he thought it would be to his ad-
vantage to do So You can rely upon it,
the movement. whoever is responsible for
it, will be fought, and think success
full showing can be made. The company
has plenty of assets and does not think
1t is insolvent by any means However,
the petitioners have alleged that fact and
1t rests with them to prove it if they
cam
LOOKING FOR DEVELOPMENTS.
1t has not been fully determined by the
company just what steps will be taken
yet but il is believed that something of
an interesting nature will come out within
a day or two. What it will be or Just
what move will be made is as vet indeh-
mite.
Several other interventions were filed
In the superior court yesterday, some of
which adopted the allegation set forth in
the bill. The Intervention of Mr. Elton
o.
was reported yesterday morning.
OTHER INTERvENTIoNs FILED.
Among einterventions yesterday was
one filed by Messrs. Barrow Il Osborne
for Henry H. Hull and Lucy c. Hull.
which sets forth that the former owns
$1,000 of the first mortgage bonds and
$1,000 of the first mortgage consolidated
bonds on the road, while the latter owns
1900 of the consolidated mortgage bonds.
CT hot a., IL, s@ :
technically, according TO the terms of the
mortgage, that no default has yet been
made, and the petitioners cannot call
upon the trustee to take action, the filing
of the bill by the unsecured creditors
makes it necessary for them to intervene
for their own protection. Judge Fall
giant granted an order making the petit
tioners parties plaintiff to the suit.
An intervention was also filed by Mr.
h. W. johnson, attorney for the Tennes-
see Coal and Iron Company which has
claim of S5O259, for which it alleges de-
mand has been made, but payment has
not been received. 1t is expected that
other interventions will follow
SAYS THERE Is NO DEFAULT.
One of the attorneys interested in the
filing of the bill FOR receiver stated that
1t is not true, so far as he knows, that the
City and Suburban Railway Company, or
any OF those connected with it, had any
thing to do with the movement. He said
IL was BONA tide suit on the part of all
the parties concerned, and that il would
be pressed for all it was worth
1t is denied by those interested in the
present policy of the road that any de-
fault on the bonds has been made, as
under the terms of the mortgage the com
pany can defer payment when necessary
until Oct. J. IL was also stated that any
of the bondholders who desired to do so
had the right to say they would not de-
mand the payment of their interest when
it fell due
AuDTrT,Jc ACC0TrII,,e