The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-08-08
PUT A STOP TO THE SALE.
The Middle Georgia and Atlantic Gets
Into the Court.

y
He Charges That Part Of the Syndi
cate Loan Certificates We're Sold a.
90 Per Oent-Many of His AlleEa
tions Denied by the Directors-Th'
Hearing Next Saturday.
AS was expected and stated in yester
days MORNING NEWS the advertised sale
Of the Middle Georgia and Atlantic rail
road at the court house did not take place
the proceedings having been stopped BY
al Injunction from the superior court.
The injunction was obtained on repre-
sensations made by Mr.. A. O. Granger OF
Philadelphia in a petition filed through
his attorneys, Messrs. Erwin, duBiguou
a. Chisholm. MIR. Granger stated he was
the owner Of 81, 500 Of the capital stock
of the Seaboard company, which owns
the road. He cites the facts in connec-
ton with the making of the syndicate loan,
and says all the property Of the road was
pledged for that Indebtedness of Si15,000
He states he turned over 2lS shares TO
the SeabOard company according 10 the
agreement, and that the trustee, the
Oglethorpe Savings and Trust Company
issued the certificates to those making
amount obtained in cash, he states was
sl6S. 925. Certain holders of these certifi-
Gates. he alleges, obtained them at 90 per
cent of their face value. He says the
trustee claims the amount now due is
$50, 027.3S, and states that the president
of the company was paid $4,000 for GER
tain alleged services.
THE FULL AMOUNT NEVER RECEIVED.
He says the SlGs, 925 was never received,
but that the amount was much less by
reason Of the discount of 40 per cent.
allowed some of the purchasers Of the Ger
tificates, and by reason Of the fact that
SIS, 900 was paid to the president. He
claims in these matters the trustee ex-
ceeded its powers and violated its trust
In the event Of the sale of the property
he said he would suffer a heavy loss by
reason Of the fact that his stock would be
wiped out. He charges that various per
sons, including a majority of the stock
holders and the directors of the Seaboard
company, entered into an agreement for
the purpose of forcing sale of the road ,
and they are parties, he alleges, who pur-
chased the certificates at 90 per cert. Of
their face value.
If the sale proceeds, he says. tho entire
minority stock will be wiped out, and the
true amount of the indebtedness would
not be known, and other parties would
not know how to bid on il. He says he
stands ready to take up the just and true
amount of the loan and any true and just
interest or other charges as soon as it
was found what the true amount is.
SAYS HE Is READY TO BUY THE ROAD.
He asks a Just and true accounting by
the defendants, and that they disclose
the true amount Of the money received by
the trustee and by the Seaboard com
pany, and that all the assets, properties
and collateral of the company be turned
over TO him on the payment of the just
and true amount Of the loan, and that the
time for such payment be extended for
six months.
e He asked, further, that e7Oglethorpe
Savings and Trust Company and the Sea
board company be restrained from selling
the properties described in the agree
ment, and, that pending the suit, the de-
PENDANTS be eniOined. He says tho injury
to him win be irreparable il the sale is
allowed 70 proceed.
On these statements he was granted an
INDUCTION aud the sale did not take place
The hearing as to whether the injunction
Will be made permanent will take place
before Judge Falligant next Saturday
morning at 10 O'Clock
THEY DENY THE ALLEGATIONS.
The directors of the Seaboard company
l.
ger. One of them stated last night, with
regard to the borrowing of a certain
amount of the money, where only 60 per
cent. of the face value Of the certificates
was received, that it was done by a vote
of the stockholders during the financial
panic Of last year, at a time when it
would have been impossible to have OBJ
tanned 1t under any other circumstances
OF the amount $4,000 had been Dor
tho az 1taa q
the certificates.
The stockholders held a meeting. and
the directors were authorized by them to
borrow the remaining $35 600 on the GER
tif1cates TO be sold at price as low as Go
per cent. of their face value, If the money
could not be obtained on any other terms.
This, he said, had to be done In order to
complete the road TO Covington.
which would have been almost
worthless had this not been done.
Mr.. Granger, he said, was informed
Of this action and was given an oppor.
tunlty to purchase his pro rata of the GER
titicates at that rate, but he declined. as
his letters will show. "A clear show
ing" he said, will be made by the
trustee at the hearing next Saturday
and l think the sale will be allowed tc
go on as it was anticipated"
TRIP OVER THE ROAD.
MIR. Granger and Mr.. A. Balfour left
last night for Milledgeville for the purpose
Of taking trip over the Middle Georgia
and Atlantic railroad to-day. They have
never seen the property, and tho impress.
sion formed by the trip of inspection NAV
have great deal to do with the settle
ment OF the present differences. They
lntimated that II the property was sur
hciently valuable they might allow the
sale TO proceed and buy the road in. BY
so doing Mr.. Granger might save his in
terest in the road and at the same time
acquire a valuable piece Of property.
President Williams Of the SeabOarC
company said yesterday that the com
pany would take no steps at present, the
matter being now entirely in the hands o.
the Oglethorpe Savings and Trust Com
pany as trustee. He could express NJ
opinion on the subject, he said, until is is
seen whether the restraining order
against the sale Of the road Will be mad,
permanent or dismissed.
DENOUNCED THE CHARGES AS FALSE.
Mr.. Williams emphatically denounced
as false the charges of manipulation mad,
by the petitioners in their petition. Mr.
Granger, he said, had had every oppor
tuniJY to come in with the other stock
holders IN the syndicate loan, and haC
positively refused to do so. After tho
loan fell due, Mr. Williams said he haC
personally urged upon Granger to come
to the assistance Of the company TO helI
raise the amount required TO pay tho
lon On 20 al IL.