The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-01-09
RECEIVER YOUNG IN CHARGE.
Grounds Upon Which a Receiver Was
Appointed for the Electric Railway.

BE Charges Both Companies With In
solveney and That the Plan Of Reor-
ganization Is Injurious to His Inter
ests and That Of Other Bondholders.
A Belief That an Effort at a Compro-
mise Was made Before Judge speer's
Order Was Filed.
The bill for a receiver for the Electric
Railway Company and the Savannah
street railway and the order Of Judge
Speer, appointing John r. Young temper
airy receiver, were filed with the clerk OF
the United states court yesterday morn
ing. II. =. w. Palmer Of Atlanta, who
had the order in his pocket, left
1t at the residence Of Deputy
Clerk Gillespie Of the United States court
night before last, with Instructions TO file
it the first thing in the morn
ing. which was done. The proceedings. to
a good many people. had the appearance
Of an attempt to compromise. Receiver
Young. the attorneys for the company and
President Collins are still mum and "un-
able 70 give any information" as TO the
reasons for bringing the receivership or
what further developments are likely to
result
President Collins Of the Electric railway
was asked about the receivership and the
effect IT would have upon the securities of
the properties. He replied that ne was
not in position to talk at present. Mr.. J.
r. Anderson. counsel for the company,
was asked what policy viii be pursued by
the company and whether it viii fight the
racniVarshin He rau1fad that he oou11 NOT
tell yet what would be done. In all proba-
bility the line Of action, he said. would
not develop until the hearing for a per-
manent receiver is had Mr.. Anderson
said that he was unable to give any expla-
nation of the mysterious manner in which
Mr.. Palmer went about the filing of the
order for the receivership. He did not
know that Mr.. Palmer had such an order
until Monday morning, he said, and when
Mr.. Palmer left him at Z o'clock that af-
ternoon he did not seem decided as 10
wether OF not he would file the papers he
had in his pocket
The Electric railway has been so promi-
nently before the public for some time
past that there is naturally considerable
interest in the receivership and curiosity
to know the inside of the matter. There
are undoubtedly some gentlemen in Sa-
vanah who could tell the story If they
would but they are not talking just at pres
en-. a prominent undncleF INFORMED
Morning News reporter last night that the
holders of $4,000 of bonds refused to go
into the reorganization and undertook to
bulldoze the other bondholders of the two
companies into buying their bonds al a
good figure, and tina, the receivership pro-
ceedings were instituted for this purpose.
Another fnancier, well posted in the af-
fairs Of the Savannah street railroad, said
practically the same thing. He said that
Mr. Palmer's object in Withholding the fill
ing of the receivership papers, as he did,
was done in the hope of effecting a COM
promise, and that Mr.. Palmers determi-
nation to file the papers was not taken
until the last moment A compromise was
offered, he said, and is still under consid-
Grafton. 1t is possible that it may be ac-
cepted and that there viii be no perma-
ent receiver appointed and the plan of re-
organization viii be carried out.
Mr. Young assumed charge of the rail-
way yesterday at II o'clock. The first or
der issued by the receiver was one contin-
uing all the present officials and employees
of the company in office and at the same
compensation formerly received by them.
The second order of the receiver instruct
ed the conductors to receive no passes for
fares. City officials and officers and direc-
tors of the company will now pay their
fare when they ride the same as other pas
sengers. Mr. Young said that there will be
no change in the rates of fare for the
present.
The bill for a receiver is styled II. A.
Pevear VS.. the Savannah Street Railway,
the Electric Railway Company of Savan-
nah and the Central Trust Company of
New York. In equity. Bill for receiver,
etc" The order was granted by Judge
Speer in chambers. Jan. 4. and appointing
John r. Young temporary receiver of the
property and assets of the two railway
defend
ants show cause in the circuit court at
Augusta. Jan. 16, why a permanent re-
ceiver should not be appointed.
The bill is brought by II. A. Pevear of
Lynn. Mass, in his own behalf and that of
all other bondholders similarly situated.
1t is exceedingly lengthy and reviews the
whole situation with the utmost detail
The premise consists of 80 sections and is
followed by eight requests.
The Savannah Street and Rural Resort
Railroad Company was incorporated by an
act of the legislature approved Sept. q,
1888, and under that name equipped and
operated about twelve miles of road with
electric equipment and power plant of
about 800 horse power. About June /, 1891.
the company executed mortgage to the
Central Trust Company of New
York upon all it's property and
income as security for the pay
ment OF $50 gold coupon 6 per cent.
bonds cor the race value OF Sl,UUU each),
with coupons of $50 each, payable semi
annually on the first of December and
June of each year at the United States
National Bank of New York.
Mr.. Pevear, some time in 1892, purchased
ten of these 81 goo bonds with all of the
unpaid coupons attached num-
bered from 43 to 81. The amount of cap
ital stock provided for in the charter Of the
company was $4,000 with permission to
increase to $4,000, with shares at the
par value of $50.
The complainant or orator, as he is
styled in the bill charges that this in
crease of capital stock was made and is
sued to stockholders whose names are I'M
known to him and that the capital stock
was never fully paid up either in money or
property at a fair valuation, as he believes
will be shown by the books when they
are produced and examined.
The name of the company was changed
to the Savannah Street Railroad by the
legislature in 1891, and the right was
granted to increase the capital stock to
S750,000. The capital stock was increased
to $500 900, and the increased stock was
issued 1t is thought that this in
creased stock was not paid for in money
or property at a fair valuation, as it is
ba1feNa1 thp hDrl-e will Tho dat