The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-07-14
The PLAN NOW OPERATIVE.
II HAS BEEN DECLARED 50 FOR
MALLY BY THE COMMITTEE.

Mr.. A. r. Lawton. Jr.. Called 10 New
York for the Purpose of Consult
ing with the Attorneys With Re-
gard 10 Calling on the Courts for
a Speedy Foreclosure Decree
Likely 10 BE ForecIOsed Under the
SIa.OOO.OOO ATortgnge-The DepOs-
Its of Securities at the Southern
Bank.
The new plan OF reorganization OF the
Central railroad was formally declared
operative by the reorganization commit
tee in New York yesterday. This informa-
ton was received by telegraph by Mr.
A. r. Lawton. Jr.. yesterday morning and
he was asked TO come on 10 New York as
soon as possible. for the purpose Of ar
ranging for a speedy application 70 the
court and for the DEGREES Of sale.
The telegram was from Mr.. Henry Craw-
ford. who represents the reorganization
committee. Mr.. LawtOn viii leave the
city tomorrow for New York 10 meet with
the other attorneys interested, for the pur-
pose of making arrangements TO get de-
cree of sale Of the property as soon as pos
eible.
1t is not definitely determined as yet
under which decree the property Will be
foreclosed and reorganized- 1t is most
likely. though, that 1t will be under the
S13OO0O00. or consolidated mortgage for
the foreclosure, of which a cross bill has
been Med by the Central Trust Com
pany, as trustee. in the United states
circuit court. If the property were fore
closed under the tripartite mortgage,
which foreclosure is now held up in the
supreme court of the United States
on an appeal taken by the Southwestern
railroad that railroad would also have
to be sold under the decree of Justice
Jackson, unless a decision from the su-
preme court was awaited. and there IS no
telling which way that decision would be
until it comes.
If the Southwestern accepts the plan as
at has practically agreed to do, there IS no
reason why It should insist on its appeal
an the supreme court, as the committee
agrees to relieve II from the indebtedness
under the tripartite mort gage, upon one
third of which Justice Jackson held 1t was
liable A withdrawal OF this appeal would
make Justice Jackson's decision final, and
would necessitate a sale Of the Southwest
ern along with the Central, while a fore
closure under the $l3,00O,OOO mortgage
would not. No decree, however has yet
been obtained on the consolidated mort
gage though q cross bill asking for the
decree has been filed by the Central Trust
Company. The Southwestern railroad
promptly came forward with an objection
TO this cross bill, and secured an eX-parte
order from Judge Speer preventing the
plaintiffs from proceeding under II, as
stated in the order until the Southwest
ern's appealed case has been decided. If
the Southwestern accepts the plan In good
faith. however, as there is no doubt 1t will
do. this order would of course be annulled
and there would be no difficulty IN obtain
ing a decree Of sale under the Sl3,OW,OOO
mortgage at the present term OF court
which has not yet been adjourned
1t is possible, therefore, for the attor-
neys to get together and arrange to secure
a decree of sale in very short order, and
at appears that this is their intention. 1t
will take but a short time to secure the
decree after they have decided upon II,
and there will be nothing else TO do but ad-
vertise the property for sale. The length or
time during which the advertisement runs
IS usually determined by the decree
The deposits of securities at the South
ern Bank here have been very free dur
ing the last few days. Monday July 10
IS the last day, according to the adver>
tisements for the receiving OF securities,
but report comes from New York that
the time will be extended to July % for
the benefit of those who have yet to Sc
cure orders Of court and powers OF at
torney from abroad before they can trans
fer the stock and certificates of indebted
ness which they hold for others The
Southern Bank has large number of Sc
curities on hand which have not yet been
deposited, but which will be deposited just
as soon as the necessary papers can be
secured. In a great many cases there have
been necessary delays. as, for instance,
in the case Of parties who have to Sc
cure powers of attorney from Europe.
More than a majority, both of the eertifi-
Gates of indebtedness and minority stock
has already been deposited with the
Southern Bank here. The deposits of de-
bentures have been s., 100, of the mi
nority stock, 1S71S shares. Savannah and
Western railroad bonds, $1,000, Montgom-
cry and Eufaula railroad bonds, $1,000
Columbus and Rome railroad bonds, SILL
900. Very few of the Savannah and West
ern bonds were held in Savannah. Be-
sides this the bank has other stock and
debentures on hand awaiting the orders
of court and necessary powers of attorney,
as has been stated. Che indications are
that the plan viii be carried out now in
a very short while.
~ v-v,rnD nv a GH ARnrrn