The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-05-03
THE PROCEEDINGS STOPPED.
THE CENTRAL Trust cos FORE
CLOSURE surf To he STAYED.

CLOSURE surf To he STAYED.
Judge speer Grants an order on APP
pIication of The Southwestern Rail-
road stopping the Proceedings "a
FOrecIOse the Central Railroad
Properties Uuder the $4,000, GOA
MortEaee-The suit Was Instituted
in Furtherance of the ReorEaniEa-
tiOn and "A Motion to set Aside the
order l. Likely 10 Be Made.
BY an order granted by Judge Speer. on
application from the Southwestern Rail
road Company. the foreclosure proceed
ines against the allied Central railroad
properties recently instituted by the Cen
tral Trust Company. under the consoli-
dated or S1sO0000O mort gage, nave been
stayed, pend lng the determination OF the
appeal OF the Southwestern to the United
States supreme court in the matter of the
tripartte mortgage.
As this bis was filed for the purpose Of
securing a decree of foreclosure under
which the nc organization could be carried
out, and the road sold for that purpose.
there is Hken 10 be a warm contest over
the stopping this proceeding. The south
Westerns anr cal of course set aside the
NnNGE ne AiAE iAitl AfA.ls ana
the Central rust Company. and other
parties at int rest sought by this cross
hin 10 net a 70 reclosure under which the
reorqaniz alton of the property could be
carried ous wit bout awaiting the deter
mination Of tho appeal by the supreme
copr. which is not likely to be reached
for year or two
There are other in6pest beside the
Central Trust or lpany concerned in this
hill. and it is b, III wed they will make a
,,,otiop to scr asi. Il this order as soon as
they are made aV va re Of what mas been
done. The order it see ms was granted with
out notice to the palS ties interested IN the
Central Trust COmpaI 'ys bill.
The order To this IL 1ect, win me pei
ton on which il was granted, was uIeu
in the Tinted States curt here yester-
day In petiuOning for an ordG 20 SOP
this proceeding, the a. tofHeyS lol ~ ny
Southwestern railroad Sc { Iorth the Iacts
An Connection with the j ecree on Jan !,
1894 in which the road WAS heki lldple
for one-third of the trlpa' utt Ht oIssas 81
indebtedness. 1t then gives we A3ClS IN
connection with the appeal .aken by tnc
road from that decree, shoWlH6, y a. lue
appeal was finally perfected aiu Lle ue-
cree superceded by the filing OF an APP
proved bond on March 9 1894
The petition states that the deere OF
the court, declaring the Sl3OOe0OO N orr,
gage TO be valid, ami gTan1ing the Cen RAJ
Trust Company leave 10 ME cross plil
and fOreclOSe this l1hOrt&fdBet was %'t1
of the distinct grounos on Which me ap
peal was taken. Another OF the Brouht y
stated was the fact that Lhe SouthWestehn
was granted no right OF subrosatl0ll
against the Central, on the claim that the
Southwestern's Endorsement on the TRIP
artite bonds was only as a s urety.
A certificate of division up on the ques-
tions at issue was granted ~ the judges
of the court of appeals on june lS' ana tne
appeal to the supreme court was nnally
fiied on July 9. 1894. The peth ion states
that Notwithstanding the appea ana SUI
persedeas, parties having an adverse m
terest are pretending to proceed with me
litigation in the circuit court. in chat
the Central Trust Company filed z CROSS
bill on April IL to foreclose under inc
mortgage of April !, 1880, executed 10 that
An order was passed directing the mas
ter to take testimony under the decre
of January, 1884, particularly as TO the
property not covered by the len of either
mortgage, and this cross bill of the Cen
trail Trust Company was also referred 10
the master to take testimony hereunder.
The Southwestern Railroad Company
says this proceeding is for the purpose or
securing a sale prior to the hearing OF
its appeal in the supreme court, which VIII
be preiudicial to its interest and which
will impair its rights. A fnal disposition
of the questions raised by the appeal IL
states is essential and necessary TO a,
full protection of its rights before any fur
Their proceedings are taken by the circuit
me claim is also made that the cir
cunt court is without jurisdiction TO pro-
CeeQ IuTtneT unNeI lnl5 CIOSS htil VI WIN
the litigation looking 10 foreclosure
except in so far as Is necessary 70 pre-
serve the funds and property IN the hands
Of the court, and that the status OF all
rarties to the litigation must remain as II
existed at the time of the appeal TO the
United States supreme court until maj
determination of the whole matter there at
controversy.
The Southwestern railroad asked for an
order preventing any proceedings under
this bill of the Central Trust Company
until the appealed questions have been
decided, and that the status OF all parties
at interest be kept just where II was at
the time the appeal was made.
The petition was presented 10 Judge
Speer BY Messrs. F. H. Miller and A. Q.
Bacon, attorneys for the southwestern
Railroad Company, ana the name OF ChtS.
c. Beaman is also attached TO the petl-
tion as being of counsel for that road.
Judge Speer granted the order as asked,
namely that all references 10 the master
ordered by the decree of January 1894, as
10 the matter set out in the decree, ana
also the cross bill filed by the Central
Trust Company on April II, pursuant to
the leave granted by the decree be stayed
1t is stated in the order that these are
matters superceded until a final determna-
ton of the questions now before the Uni
ted States supreme court
No reorganization plan can be perfected
without a foreclosure under Whlch the
road can be sold and bought in by the
COMMITTEES for the security holders. This
cross bill contemplated supplying TINS
deficiency which was due to the TACT that
the foreclosure under the triparute mort
gage is STAYED by the Southwestern ap-
peal now pending in the supreme court.
AS efforts are being made to bring the
reorganization rapidly TO head ana as
the end in view was to be brought about
to save delay, there Will no doubt be
made a determined effort TO have this
order of Judge Speer's set aside.