The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-04-21
COL. ScREVEN A RECEIVER.
THE CITY AND SUBURBAN RAILWAY
PLACED N HIS HANDS.

sic Assumes Control of the Property.
The Bill for Receiver Filed by
Attorney for James W. McReynoIds
of GIenIOch, Tenn.-GeneraI Mis-
management and Fraudulent
Schemes and Designs AfIeged-The
Court Asked 10 Annul the Mcintyre
COnfracts-The Complainant Be
IfeveS MIR. Parsons Has Decided Not
10 Pay the May Coupons on the
Bonds-A Question a. 10 the Opera
tiOn of the Property.
The city and Suburban railway has
been placed in the hands OF a receiver by
Judge Speer Of the United States court
Col. John Screven has been appointed
temporary receiver under a bill against
the road filed at the instance of james
". McReynolds of Glenloch, AIunroe coun-
~, Tennessee, by his attorneys. Messrs.
Palmer & Read Of Atlanta, and took
charge as such yesterday afternoon. The
bill was filed in the United States court
here yesterday morning by Mr. II. f. ",
Palmer of Atlanta.
The bill does not ask for a foreclosure
or sale of the property, but alleges a
wasting and acknowledgement Of the prop
- ~ anu dSHn llOAtGAiOu from any 1AF-
Their mismanagement. 1t also aske that
the court annul what are known as the
Mcintyre contracts. under which equip
ment was furnished the road, to be paid
for at times not stated. but as long as
the property thus furnished was not pad
Tor IL was TO belong to l.. II. Mcintyre.
The bill alleges that this equipment was
really furnished by Mr.. George Parsons.
who owns the majority stock, and the
court Is asked to decree that the property
furnished under these contracts belongs to
the road, and is subject to the bonded in
debtedness.
The plaintiff, McReynolds, states in the
outset that he brings his bill in his own
behalf and in behalf Of all other bond
holders similarly situated against the City
and Suburban railway and T. NJ Gun
bingham. trustee under the first mort
gage on the property. The lines included
an the complaint are those within the city
limits, and the lines to Isle Of Hope and
Montgomery.
May %, 1882, the City and Suburban
Railway Company executed to T. NJ. Gun
nlngham and 8. p. Hamilton a mort
s ~ s, deed Of trust. conveying 10 them
Rose OF securing the payment of 500. 900
nrst mortgage bonds bearing per cent.
days of February, May. August ana NJ
Yember All of these bonds were sold
ana about $4,000 of them are owned in
McReynolds then states that he is the
pWner OF two Of these bonds of the value
OF woo The capital stock Of the road
consists or 800 shares Of the par value
OF 500 each, and all OF this except fiftv
ehares, according to the bill Is owned and
controlled by George Parsons and J. N.
f1arrinan, residents Of the state Of New
York though Hartman, IL is stated
SPENDS most OF his time in Savannah
ana Is the personal representative of
parsons with reference to the mana ge-
ment and control of the railroad The
president ana other officers OF the rail-
road company, including its directors. it
as stated, own no stock, except norni-
nally, and then Just enough to ouaiifv
Ihem Tor their respective Offices Thus
Mr. Mr.; parsons has exclusive control of the
amusement OF the property
sometime in 1892 Mr.. Parsons deter
Ln iIiped that the road should be equipped
Win electricity and to that end, it is
stated, he caused the road to enter into
tHrse contracts with one l.. II. MoIntyre
OF New York; one of said contracts having
aSiSr ,sla 70 furnishing certain material
ana work Tor the track, another for over
neau construction and a third for a power
plant, electric motors trucks. car bodfes
I'm me ne reauy important feature of the
Dill IS uhe allegation that while these con-
tracts purport to be with Mr. AIcInfVre
they are In fact, with George Parsons'
S tliu IN Siaae whatever money was furnished
IA=
nished by him. was Aur-
= When When It was determined to change from
y morse car line to one of electrir mower
~ IS stated, the horses, mules and car.
nssIs soIa, ana with a part of the proceeds
,,,bio,I ically equipped cars We're purchased
Whlch We're not OF themselves sndicient
LOT the equipment of the lines '''
as stated that Mr. MCINTYRE claims
, undt an OF the things furnished bv bim
unuer theSe contracts belong to him .and
mat Mr.; Parsons made the railroad ad
mt IN Ohe contracts with McIntvre thai
SsGSn property did belong to him with
Ilsbt OF entry and removal on defiant ~
payment; when in point of fact ali sncb
ygIvpSIly snould be declared to belong ia
sne lily ana Suburban Railway company.
SuoJeet 70 uhe payment of a reasona he
amount that may be due therefor
another allegation is that Messrs par
an tSlis am Hartman are the owners of all
S S cSpltal stock of the Savannah Thun-
derbolt and Isle of Hope railroad form
cry known as the Coast Line railroad
Mdllch .i tney also equipped with electricity
some time in 1892, and that by reason ~
owning aal the capital stock of this road
they are discriminating against the lines
NJ we Nlty ana suburban which run to
montgomery and to Isle of Hope bv di
Nert4ng travel over the Coast Tine VIC
S2nd-ty station. This II is alleged hos
! neen cone LOT the purpose of lessening the
income OF the city and Suburban and in
crossing that of the Thunderbolt road
The bonds, it is stated, were worth mar
during the early part Of 1892 hut IL 10
claimed to be the purpose Of Parsons 10 10
run down the property and so operata II
that 1t cannot legitimately earn operatine
expenses, and the only way the COMPANY
could secure funds TO pay the interest was
TO obtain them from Parsons himself and
That since 1892 he had seen fit to advance
the necessary deficit since 1892 II is set
forth that in furtherance of what is called
ehe deliberate scheme and purpose to in
gure the railway property Mr.. Parsons de
nberateIy compelled the road to red,Ice
us rare down as low in some Instances &c
half cent for a single ride SO thar tbe
market value of the bonds would be- les
sened, and 1t would be easier for hin, IN
thus secure control, not only Of ali INC
stock, but of the bonds as well. his ohiect
pelng, II is alleged, to force the holders Of
uhe bonds TO surrender them and take n
new bond, bearing a lower rate Of inter
est, which would inure directly to bis
advantage, because he owns nearly ali the
Messrs; Parsons and Hartman claim IN
nave valid debts against the proDertV
amounting to 100000, it is stated. Which
the plaintiff denies. The three cent fare
under which, it is stated. the Dronertv Il
now operating, is not sufficient. il is stat
Cd, TO pay operating expenses and fiNed
charges, and maintain the road in a nron-
err physical condition NP
In addition to the 100000 first mort e,o
bonds, it Is set forth that there IS a sfs,ts9