The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-01-07
TO SELL THE PORT ROYAL.
Creditors File a Bill to FOreClOSe the
Entire Property.

OuLcome OF Lne SCate 3 AcplOn In re
peaIing the Port Royal and Augusta
Roads Charter - Charges Made
Against Receiver Conner, Who is
Trustee as President of the Central
Under One Of the Mortgages-A Mo
ton to Discharge Receiver Averil
and Appoint New Reoeiver.
Complex does not express the intricate
situation in which the state Of South
Carolina and other Etigants have put
the Port Royal and Augusta railroad,
both in the courts and in politics.
The latest feature is the fling Of bill
in the United States court in Charleston
against all parties, including the first
mortgage bonds, and asking foreclosure
on all the liens on the property. These
liens are as follows: FIRST mortgage
bonds $3.50, 900, second mortgage, SIP, 900,
and income bonds, practically the third
mortgage, 81, 500, 900, Of which the majority
are owned by the Central Railroad and
Banking Company.
The bill asks the foreclosure of the
property under all the liens, and was filed
by Messrs. Smythe & Lee, of Charleston,
representing certain bondholders of the
second mortgage.
OUTCOME OF THE STATES ACTION.
This new feature in the litigation is the
outcome Of the states action in repeating
the charter of the road The bill sets
out this act of the legislature, charges
that there has been default on both
mortgages, and says the repeal
ing OF the roads charter makes
all the mortgages due, and necessi-
tates the marshalling and administration
of all the assets through the court.
The bill states that under the mortgage
held by these bondholders the president
of the Central Railroad and Banking
Company is for the time being the trus-
tee. Receiver II. M Conner is therefore
the present trustee. The mortgage pro-
vides that there be an annual payment
for sinking fund to the Central rail-
road, which company agreed to hold and
invest the fund safely for the purpose
of allowing per cent. annual
interest so as to meet the bonds at ma
turity.
Mr.. Fl. M. Conner, president of the Port
Royal and Augusta Railroad Company, is
stated as the mortgagor and debtor,
against whom the foreclosure is sought.
1t is charged that the sinking fund has
been wasted, and that more than half of
1t has been wasted in improvident and I'M
allowed investments.
OhAhGEo AGAlNSI MN, COMER.
The bill charges that MIR. H. M. Conner,
| as receiver, failed to account for and de-
liver to the Port Royal and
its receiver for all the
property belonging to that road, and that
the Central railroad, acting with the
knowledge and assent Of its president,
| the trustee of the mortgage has suffered
the property to depreciate and get into
bad repair, and that therefore the trustee
has not fulfilled the duty of his trust, but
has allowed the securities for the bonds
TO deprecate in value.
A foreclosure and sale of the property
is asked, and further that all the credit
| ors come in and prove their claims, and
| that a receiver be appointed to wind up
the affairs of the property
Upon the filing of this bill, Judge
| Simonton ordered the extension of the
receivership of the property, and APP
pointed j. H. Averill receiver under it.
| He enjoins all creditors of the company
| from setting up or attempting TO enforce
| their claims in any other action, and con-
solidating all the causes in one
This is the first time the creditors have
come into court asking foreclosure.
| Copies Of the paper have not yet been
served on the Central's attorneys in Sa-
vannah, but they will probably arrive by
to-day's mail.
Messrs. Smythe & Lee, who fled this
! bill, retired as counsel for the receiver of
the Port Royal and Augusta railroad, and
Judge Slmonton appointed Maj Theodore
| @. Barker receivers counsel.
! Messrs. Mitchell & Smith and Lawton
| Il Cunningham moved before Judge
| Simonton the appointment of new re-
! ceiver for the property in the place of J
| H. Averill Judge Simonton has refused
to displace him, as will be seen by tele-
gram in another column.