The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-04-21

! secured a Judgment FOR SI0.S6c35 against
me property on which an execution has
Mr.. Parsons, it is stated. claims that the
I bOndholders are not entitled to any con-
Z sideration. and IL is alleged that the
Z trustee is fully aware Of the mismanage-
Z ment, and has taken no steps to protect
! the property pledged for the bonds.
/ Mr. McReynOlds says he believes and
| charges that Alr. Parsons has decided not
/ 10 advance the funds necessary 10 pay
I the May QSe5) coupons, and that the prop
erty itself Is not able TO pay them
Based on these allegations the petitioner
7 asks that the bill be filed and that the
! defendants be restrained from further
I wasting and mismanaging the property
! that some proper person be appointed re-
ceiver 10 take charge Of all the property
| of the road. and that the pretended con-
/ tracts with Mcintyre may be brought into
! court and cancelled. 1t is asked that the
property furnished under these contracts
be decreed to belong to the road and that
Whatever sum may be FOUND 10 De que
for them may be decreed 10 be an indebt-
edness Of the road. only TO be paid on
within reasonable time. TO be liked by
The customary affidavit as to the facts
contained in the petition is sworn TO by
the agent of James w McReynolds. He
states the facts so far IS he knows, are
true, and what he has heard from Others,
he believes TO be true.
This Is followed with an affidavit signed
by Mr.. J. $. Collins, in which a letter
written by Henry Parsons is referred to.
IN NlAAh ltAteI VI Is ENdltA MI
Parsons said that Mr. Collins
could make some trade with his father
by which he could squeeze enough money
out Of the bondholders of the city and Su-
burdan railway 20 enable him to largely
pay Mr.. George Parsons for his interest
IN the property. The rest of his affidavit
IS TO the effect that the City and Subur--
pan property is being mismanaged, and
that In the proposed deal with the Electric
Railway Company Mr.. Parsons wanted to
arrange to store some Of the rolling stock
of the Civ and Suburban railway N cas-
he should see proper to default upon the
bonds of that company
To the bill IS also attached a copy of the
mortgage deed or trust to MeSSrS. Hamll-
ton ana Cunningham, a copy of the Nc
Intyre contracts, and the executions taken
on the judgments now standing against
the property.
Judge Speer signed an. order TO the eff
feet that the bill be filed and that Col
John Screven be appointed temporary re-
celVer or all the property referred TO in
the bill, Including the tracks, machinery
cars power houses and all the agencies
now used in the operation of the property
He Is also to take charge of the books and
accounts and the officers and agents were
directed to deliver to him all the property
specfed at once. The defendants are or
dered 70 show cause before Judge Speer
In chambers at Macon, May at 10 O'Clock
why the receivership should not be made
permanent.
Col John Soreven, the newly appointed
receiver called at the Office OF the City
and Suburban railroad at noon, accom-
panied by his attorneys Messrs Palmer
and J. Randolph Anderson and served
the order OF the court upon President
Johnston. The latter accepted the situa-
tton and turned over the property at
once. lie was at once appointed mana
ger, with instructions to continue the OPP
GRAFTON of the property as at present.
There was one point upon which the re-
ceiVer and his attorneys and the officials
of the road did not agree and that was in
reference to the power house. The order
OF the court includes the power house
Capt. Johnston and Mr.. Hartman de-
clined 10 turn over the power house to
the receiver for the simple reason, they
said, that they hold no power to do so,
the power plant being leased by Mr.
George Parsons, the owner to the Savan-
nah, Thunderbolt and Isle Of Hope rail-
road, which has contract to furnish the
was undecided.
Col. screven said last night that he I'M
derstood that the power house was built
upon ground belonging to Mr. George
Parsons, but as TO the actual ownership
or the power house he was unable to say.
My appointment was an entire surprise
to me- said Col. Screven. Il had no notice
or intimation OF 1t whatever until / was
notined OF my appointment. 1 ave not
had the time to familiarize myself with
the affairs OF the road so far as it's oper-
ationS are concerned as yet, but will en-
deaVor to do so at once. As to the finan-
cial questions mentioned In the bill / have
nothing to do with them. My duty Is
simply to conduct the property so as to
best conserve its interests, which L shall
endeaVor to do"
Director Hartman Of the CITY and Sub
urban, who was seen last night as to the
ownership of the power house, said:
The power house is owned by Mr.
George Parsons, and is leased by him to
the Savannah. Thunderbolt and Isle OF
Hope railroad, which latter company has
a contract to furnish power TO the City
and Suburban railway. The power house
is not owned by the CITY and Suburban
railway, and consequently the officers Of
thar company could not turn it over to
of the company. The contract to furnish
power Is terminable on tWenty-four hours
notice. 1t is not likely that the contract
win be terminated. however as we have
no desire to iniure our own property
There are several cars in opera ton on the
City and Suburban lines which are leased
from the Savannah, Thunderbolt and Isle
of Hope railroad These cars were turned
over to the receivers along with the other
property, as we do not desire to cripple
the road in its operations"
Speaking of the receivership Mr.. Harri-
man said: The bin is evidently in the in
terest of the enemies of the road and IS a
result of the failure upon the part of the
Electric railway people to force the own
ers of the City and Suburban and the Sa-
Vannah, Thunderbolt and Isle of Hope rail-
road into consolidation with the Electric
railway properties upon an unjust and
ruinous basis. We did not care to con-
SOlidate and receive in return an issue of
worthless bonds. Not more than three
months ago we were threatened with
receivership by the representatives of the
.ashville syndicate If we refused to enter
into the consolidation. Mr.. T. w
Wrenne of Nashville, one Of the
directors of the Electric railway.
told me that the papers had al
ready been drawn in the Office of Charl-
ton, Mackall * Anderson and that we
could be put into the hands of receiver
in twenty-fOur hours. McReynolds, in
whose name the bill is brought is not
down upon the list of our bondlholders
He must have bought a couple of bonds
in Savannah recently for the purpose of
bringing the suit. ] have been told that he
is a relative of Director Hicks of the Elec-
trio railway. The recent failure of phe
attempt upon the part of the Electric
railway to have the United States court
compel us to raise our fares to cents
probably also had something to do with
the bringing of the suit They now ex-
poet doubtless to have the fare raised to
cents. The suit is about the thinnest
that was ever brought in any court. We
are charged with pTemeditating a default
on the interest on the May coupons BY
what right can the petitioner presume
anything of the kind? As a matter of fact
arrangements had been made to pay the
| MAY coupons. We are charged with an
| attempt to run down and destroy the
! value of the property. II is well known that
/ we have recently spent considerably money
in improving the condition of the prCp-
/ erty. and as a matter OF fact the property