The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-04-17
WANTS IT TO PAY se5, 900.
A Suit for That Amount Against the
Southwestern.

The South western has got another suit
on its hands. petition has been filed
in the United States court by Adrian
Iselin, Jr., aud Columbus O'Donnel Ise-
lin. Of New York, against the South
western for $G5, 900 and interest The
petitioners own that amount of bonds of
the Montgomery and Eufaula railroad, on
which the Central and Southwestern are
indorsers. Interest has been defaulted,
and they now want the Southwestern to
pay the principal and interest.
In 1879 the Central bought the Mont
gomery and Eufaula railroad by issuing
81 800 600 of first mortgage bonds and the
Central and Southwestern Endorsed them.
The petition says the Southwestern
placed its guarantee upon the bonds for
the purpose of rendering the bonds
salable and more valuable and for the
further purpose of enabling the Central
to raise a large sum of money by the sale
of said bonds to be used in paying for the
Montgomery and Eufaula road and there
by extending the Southwestern road
from Eufaula to Montgomery and thereby
enabling the Central to pay to the stock
holders of the Southwestern a certain
guaranteed dividend.
The decision of the supreme court, or
dering the Central railroad to pay over
the SlSl 900 semi-annual rental due the
stockholders of the Southwestern rail
road. was received with considerable in
terest by the Southwestern stockholders
in Savannah. This decision is re-
garded as considerably strengthen
ing Southwestern stock. AS previ-
ously stated in the MORNING News the
court ordered $4,000 of the amount
turned over 10 the officials Of the road 10
pay attorneys fees and meet other ex-
penses. and the remainder to be deposited
with the Farmers Loan and Trust Com
pany, of New York, the trustees for the
tripartite bonds, to await the decision of
the court as to the liability of the South
western upon the tripartite bonds.
The Southwestern is somewhat better
of by reason of the order of the court"
said large stakeholder in the company
yesterday. IF the road Is compelled to
raise the s2,O00,000 necessary to pay off
its proportion of the tripartite bonds, it
will have something over $l50000 as
starter, which is a good deal better than
nothing. If the Southwestern should not
be held liable and the proposed scheme
TO separate from the Central should be
carried out this amount would come in
very nicely in providing the company
with ready money in beginning operations
on new basis"
In speaking of reorganization in con-
llGIblOh WIFI bllt EOOuhi1WGoboEl bnC Rtu-
tleman said: mo plan of reorganization
which does not propose to treat the
Southwestern stockholders fairly can be
carried through without causing separa-
tion of the Southwestern, which tend to
greatly lessen the value of the whole
property. l do not think such an
attempt will be made, nor do
think plan of this character would
be favored by the holders of other Central
securities. The holders of Southwestern
stock have not lost confidence in it. I
have bought up several small lots that
were offered to me and slowed them away
in my safe, believing that it will prove
paying investment in the long rum
A Central railroad director said that
the Central has been ready to pay over
the semi-annual rental to the Southwest
ern for some time, but has been afraid to
do so for fear of being held liable for the
amount by the trustee for the tripartite
bonds. This, he said, was the only
reason why the payment of the rental
has been delayed. The Central has
merely awaited the decision of the court
as the proper party to which the rental
should be paid The money is now in the
hands of the Farmers Loan and Trust
Company, where it will remain at inter-
est awaiting the further orders of the
court.