The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-05-03
FAILURE OF THE mARRIxGTONs.
Settlement Reached With the Rail-
reads and Banks.

Inc celebrated Harrington case, in which
many thousand dollars were involved, has
been settled, in so far as the claims of the
banks are concerned Harrington Bros
Is the name of a well known cotton firm
in West Point. buying cotton in all of the
neighboring towns and doing quite a large
business in Western Georgia and Eastern
Alabama. The firm would buy cotton in
the different towns. where its agents were
located, would take the bills of lading and
deposit them with the banks of those
towns as collateral and upon them raise
suffcient funds TO pay for the cotton and
carry on the business of the firm 1t
seems that when the cotton was shipped
1t would be taken to Newman, where the
compress of the firm would take charge
OF II and run it through the process that
makes cotton all the more convenient for
Shipment, and according to the rules of
COMPRISING and handling the cotton
would be classified, and instead of being
shipped as originally intended, il would
oe sent or 70 other ports. In this rehand-
ing or reshipping the railroad agent
would give new bill of lading for the cot
t1n 10 me owners. on the promise that
Ine original bills of lading would be pro-
uuceu: During the entire season ii is
easy 10 see how things could get pretty
Dduly mixed up with such proceedings as
lheSe-the banks holding the original bills
given by the railroad agents
IN the cotton business a bill of lading
slahQs as a symbol for the cotton itself. as
nobody IS allowed to receive the cotton
from the railroad until the bill of ladiup is
produced. Thus with two bills of ladlng
OulS tanulng-One in the hands of the
banks ana another in the hands of the
Shippers, the shuttle wound up at the
close OF the season with about 1000 bales
OF cotton out of the straight avenues of
account, and the banks were left in the
ditch.
The consequence was that the banks
brought suit against the railroads for
damages. The banks claimed they held
the bills of lading for all the cotton for
which they had advanced money on the
original shipment. The railroads had is
sued new bills of lading from Newman in
the re-handling out of the compress and
this Knocked the banks out on their col
lateral
It brought on a terribly mixed and mud
dled situation and the railroads and the
banks went to law about 1t.
The settlement IS a compromise ap-
proved by Judge Pardee. of the United
The banks get 80 per cent. of what they
claimed in the matter. This was agreed
to by all parties concerned, and Judge
Pardee's decision rendered sometime ago
was revoked.
Following is the exact text of the agree
ment:
at is agreed by the parties at interest
that the above entitled interventions be
settled by payment to the said several
lnterveners of so per cent. of the principal
and interest of their said several claims
estimated to April 3, 1885, which 50 per
cent. so to be paid as of said date is as
follows:
Merchants. and Farmers Bank of
The Bank of Lafayette ....... 10 695 Is
The Bank of Opelika ............, Is. SIG 30
LAGRANGE Banking and Trust Co.. u, 1853 81
Alexander City Bank ............ a. 961 60
Farmers and Merchants Bank of
otIloid OBSERVATION-DISCLOSURES. 1,O3b. 70
(Which said several sums are from and
after said April 3, 1885, to bear interest at
the rate of per cent per annum until paid
and the payment of which and the costs of
said interventions is to be made by the
receivers of the Savannah and Western
railroad.
And any sum hereafter recovered by
either of said interVenors, or by the said
receivers or either of them or the success
ors OF either OF them, out of Harrington
Bros, or either of them, or the Newman
Compress Company, or any other person
or persons into whose hands the cotton
in question or the proceeds thereof NAV
be traced, shall go one-haf to the said re-
ce1vers or their successors or assigns
and the other One-half to the intervenors
whether the same shall be received by
proceeding in court already begun or to
be hereafter begun or othrwise.
y 1t is further agreed that the order
passed by Hon: Don A. Pardee circuit
Judge OF date of April 13, 1885, be revoked
and set aside.
%. It is further agreed that such order
as may be necessary and proper to carry
out the terms of this agreement shall be
forthwith applied for to the Hon Don A
Fardee, circuit judge, as may be granted
by MIN authorizing and directing the car
rylng out of the said settlement
a. 1t is further agreed that nothing
IN this settlement shall effect any rights
exlstlng between the receivers of the Sa-
Nannah and Western railroad the Central
Trust Company of New York as trustees
Of the bondholders of the Savannah and
western Railroad Company, or either OF
them, and the receivers of the Central
Railroad and Banking Company, of Geor-
gia, as to any liability over to the Central
trust company of New York. represent
ing the bondholders Of the Savannah and
Western Railroad Company or to the
receivers of the Savannah and Western
railroad, or to any other person at interest
against the said receivers of the Gem
trail Railroad and Banking Company. OF
Georgia. provided that the agreement OF
the receivers OF the Central Railroad and
Banking Company of Georgia hereto does
not admit, but they expressly deny that
any such liability ever exists and they
consent to this settlement, reserving ali
rights OF defense as against any such LA
bility over.
IS. 1t being the purpose of this agree
ment simply to perfect said settlement
with the said intervenors, 1t is agreed thar
the order taken Shall be without prefu-
dice to the rights or liabilities or defer
ences of any of the other parties hereto
I'm witness whereof the parties al in
terest have signed this agreement this
April %. 1895.
~
IN. ]. & T. A. Hammond, attorneys for
receivers of Savannah and Western Rail-
road Company.
Merchants and Farmers Bank of Ho-
Farmers and Merchants Bank of Sc
noia.
"LaGrange Banking and Trust Company.
"The Bank of Senoia
"The Bank of Opellka.
1.-THE Alexander City Bank
''The Bank of Lafayette by King &,
Spalding, w. J. Sanford & Son and j. X
Dowdell, their solicitors of record.
Central Trust Company Of New York
by Butler, Stillman & Hubbard and Henry
3. Tompkins. solicitors
"Lawton & Cunningham, attorneys for
receivers Of Central Railroad and Bank
ing Company of Georgia
Following is Judge Pardee's order in the
case:
I'm the circuit court of the United States
for the Northern district of Georgia. An
cillary bill from the circuit court Of the
United States for the Middle district Of
Alabama-central Trust Company Of New