The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-04-15
IN A RECEIVERS HANDS.
THE ATLANTIC SHORT LINE IN THE
COURTS AGAIN.

President John u. Young Made Re-
ceiver of the Property Under a Bill
brought by the Central National
Bank of New York in Judge speer's
Court-The sale of the Macon and
Dublin Failed 20 Go Through RE-
cause Several stockholders Dis
scented.
President John r. Young Of the At
lantic Short Line Railroad Company is
now the receiver Of that company's prop
erty. He was appointed by an order Of
Judge speer. as the result Of a bill in
equity Of the Central National Bank Of
New York against the Atlantic Short
Line Railroad Company, filed in the Uni
TED states court in Macon.
The bill cites the PARTICULARS in connec-
ton with the roads indebtedness TO the
bank, the efforts that have been made
first 10 go ahead with the construction
Of the property. and then 10 dispose Of
II TO the Macon and Dublin Railroad
Company, which transaction failed to
come to head because OF several dis
senunS stockholders.
The Central National Bank holds a lien
against the property on an indebtedness
amounting to $4,000 with interest. This
was for money borrowed TO carry on
the construction before the present stock
holders secured control Of the property.
and FOR this loan about 100000 Of the bonds
OF the old Macon and Atlantic Coastruc-
ton Company were hypothecated. When
the road was sold out under order of
court, and bought in by Mr.. John r.
Young for its present owners. these
bonds had to be brought into court to
go into the assets Of the company and
to SECURE them the new company or the
Atlantic Short Line Railroad Company
had to assume this Indebtedness of $50
OUO 10 the Central National Bank.
AS long as the present owners Of the
properly manifested a desire to go ahead
with its completion along the lines con-
templated, and did so, the Central Ma
lonal Bank was willing to extend this
loan, nor was IL at all eXacting pending the
negotiations for the sale Of the property
70 the Macon and Dublin, as in either event
~ was tully secured The owners of the
property at first contemplated a compile
uon OF the line into Savannah, and went
about the work in earnest. An effort was
then made 10 issue about S3s0,000 of bonds
on the portion of the road between BrutOn
and Stillmore, but none of the bonds could
De placed, except among the stockholders,
ana Il was found impossible TO place them
all, so the effort was discontinued
The Macon and Dublin has had an eve
on the property for 4 long time. and nego-
uaUons were then instituted looking to its
requirement by that line An agreement
was made, subject to ratification by the
stockholders, whereby the Macon and
Dublin was to pay for the property $3.50, 900,
Out Of about 100000 capital stock in the
Atlantic short line, the holders of all but
about $4,000 or $4,000 slgnlfed their WILL
ingness to accept these terms, and an effort
was then made to see if these other stock
holders could be induced to accept it also.
President Young made a trip to Memphis
where two of them reside, and the two
others he saw in New York, but they re-
fused outright to let their stock 80 in
with the majority in this transaction, and
after considering the matter the directors
on last Friday declared the deal off The
Macon and Dublin was offered the MAORI
ty stock in the Atlantic short line on the
same basis, but refused to take it unless
bond for the delivery OF the other stock
held by those who refused to accept the
agreement. This of course, the
majority stockholders refused TO
do as they might have been re-
quired to pay par or more for 1t, or else
involve themselves in tangle of liti-
cation as the result, which would leave
them in the end with little or nothing,
perhaps, to show for what they have put
into the property.
Mr. Marion Erwin, who represents the
Central National Bank fled the bill for
receiver Saturday night, just after the
directors of the property declared the
sale off. Judge Speer at once appointed
President Young receiver of the property,
and he went up to Macon last night, for
the purpose of taking steps to qualify as
such, and to confer with other parties in
teregtcd in the property
The receivership gives the matter a new
turn. Unless 1t is settled and the bill
dismissed, the property would have to be
sold under order of the court to satisfy
the claim of the Central National Bank
The dissenting stockholders could thus
be put out of the way in all probability,
and she road might IN the end go to the
Macon and Dublin for the price which was
agreed on by the majority stockholders,
to be seen, however, what turn the re-
Ownership win take.