The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-04-16
UNDER ANOTHER MORTGAGE.
ANEW FORECLOSURE SUIT AGAINST
THE CENTRAL RAILROAD.

Brought by the Central Trust Com
pany on the sI3.OOO.OOO ConsoIi-
dated Mortgage Under which It
l. Trustec-The Interest Unpaid
since April !, 1S02-The Suit
Brought 10 Secure "A Decree Under
which the Property Can BE sold
without Waiting for the United
states Supreme Court 10 Decide the
SOuthweStern's Appeal.
Another foreclosure suit has been filed
against the Central Railroad and Bank
ing Company I'm the United States court
and this time IL is by the Central Trust
Company Of New York, the suit being
brought on the consolidated mortgage, or
the $lS.000.0O0 as il is commonly known.
The object Of this suit Is 20 secure a de
cree Of foreclosure against the property
under which the organization can pro-
ceed, as the decree granted in favor OF the
Farmers Loan and Trust Company is
temporarily stopped by the appeal of the
Southwestern Railroad Company TO the
supreme court, from the decision making
it responsible for one-third Of the tripar-
lite mortgage.
This bill or technically the cross bill Of
the Central Trust Company in the suit
81 the Farmers Loan and
irai Railroad and BANKING company was
filed by Judge Henry -. TOmpkus. repre-
sentmg the Central Trust Company. II
sets forth the facts ia connection with
the trtpaTtite mortgage Of &.gJ90J0. and
then takes up the sl3 0OJ mortgage and
the purposes for which IL was executed.
This mortgage was made and the bonds
under II ISSUED about April, $3.50. They
are five per cent. gold bonds. and We're
issued nOminally for the purpose Of TAX
ing up the tripartite bonds in part. and
IN part for the purpose % improving
me property generally and providing
for the floating debt. Under the mortgage
the Central Trust Company was made
THE trustee, and with thft company
s5.OO000 Of these consolidated mortgage
bonds were placed for the purpose OF re-
firing the tripartite bonds.
The entire property Of the Central. in
eluding the line between Savannah and
Atlanta, with all equipment and appur-
tenances, was pledged as security under
this consolidated mortgage. The bill then
goes on TO make the allegation
that the balance of the bonds
or sS,O00000 OF them. We're negotiated with
different parties. They We're as matter
OF fact, given as security for the floating
debt and are now held as such.
II Is then stated that on April !. 1892,
there was default in the semi-annual in
terest on the 100000 bonds amounting 10
szOUD and continuous defaults since that
time have made the total now due on the
coupons sls1VV,uJl. The usual allegations
or insolvency, and the fact that the prop
erty Is deemed insufficient TO satisfy all
the liens against 1t, are made in the bill
This consolidated mortgage, in the de-
cree IN favor Of the Farmers Loan and
trust Company, was held 10 be next to
the triparute mortgage in force and valid
ity' and the Central Trust Company as
trustee, asks that this consolidated mort
gage may be foreclosed by decree of
court and that the interest amounting
10 Sl.2O,O0o. may be decreed TO be due. The
holders OF the bonds. In default Of paw
nent WITHIN due time as may be specified
py the court the petition asks
that the whole mortgaged property
Of me Central railroad be sold by the mas
ter as one parcel. 1t being held that h is
not capable Of division into parts. The pc
uuon further asks that after the court has
decreed The amount due on the COUPONS
as against the defendant, the balance OF
the proceeds be distributed as the court
may direct.
Under the rules Of the United States cir
cult court this hill could not come uD for
hearing and decree before July. but that
Will be full time for the purposes for
which u IS intended. The United States
supreme court lis so far behind on its
docket that the appeal OF the Southwes-
tern could not be decided under two or
three years, which makes foreclosure
and sale under the decree in favor of the
FARMERS Loan and Trust Company impos-
flDie, Tor the purposes OF any
REORGANIZATION which may take place
within a short time A foreclosure under
another mortgage, such as the consolida-
ted mortgage, Will give opportunity for a
which, IL all parties were agreed there
would be no delay from appeal or any
other source, and the reorganization could
De carried on without any legal difficulties