The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-05-03
BOND FOB A QUARTER MILLION.
JUDGE SPEER's DECREE PUTS THE
CITY AND SUBURBAN BONDS
HOLDERS On VELVET.


S25O.OOO Guarantee for the Bond-
holders Security-COntcstedC Claims
as 10 Equipment 10 he Adjudicated
by the COurt-The Receiver 10 he
Dismissed Upon the Approval OF
the bond by the Court-A Cross
suit Filed by the Railway Company
for the Purpose of bringing Mr..
McReynOIds 10 Light.
The attorneys and others interested in
I the suit for a permanent receiver for the
I City and Suburban railway returned from
Macon yesterday morning.
Mr.. T. NJ Cunningham. trustee for the
| bondhOlders, brought back with him a
copy Of Judge Speers order which de
/ crees that upon the hlling in court by the
/ railway of a bond to the amount of Sz5O,
I 90 upon conditions named in the order
/ which shall guarantee the bOndholders
/ against all loss by waste. deterioration or
rnismanagement upon the part of the rail
way company the temporary receiver
shall be dismissed
The receiver will continue in Office until
( such a bond shall have been filed and ap-
proved of by the court. The bill is not
dismissed. however, with the dismissal Of
the receiver and will remain pending and
further action can be brought under il.
The matters of the ownership of the
overhead and underground electrical
equipment and Of certain rails to the ex-
tent of two miles or more which have
been laid along the line. the ownership of
which is claimed by Mr.. George Parsons,
are left to be adjudicated by hearing at
the regular term of the court. Judge
Speer's order contains the gist of the re-
suits Of the hearing in Macon. 1t reads
as follows
James w. McReynolds vs. the City and
Suburban Railway and T. NJ Cunning
ham. trustee, In equity.
The hearing of the application for per-
manent receiver in the above stated case
coming on to he heard before me this day.
after hearing the pleadings read, and re-
affirming therein that the defendant the
City and Suburban railway tenders a
bond with surety in the sum of $4,000
conditioned, first, for the preservation Of
the property covered by the lien Of the
mortgage deed, given as security for the
bondholders against waste and deteriora-
ton and secondly, conditioned against the
unjust or improper diversion of any Of the
legitimate revenues derivable from
proper operation of the lire of the said
City and Suburban railway; and prays
that upon the filing and approval Of said
bond that the receivers be discharged and
the property be restored to the possession
Of the said railway and its proper
officers, and 1t appearing that the trustee
representing the bondholders joins in this
prayer of the defendant, the said City
and Suburban railway, and the plain
tlh consenting in open court to the same.
Ii is considered ordered and decreed that
the amount and conditioned as above
stated with sureties approved by the
court and containing provision that judg-
ment or decree in this case may be en-
tered upon said bond for the amount Of
any damage occasioned by any breach or
breaches of its conditions without the ne
cessity of filing any separate suit there
on, that then the receiver shall be dis
| charged and shall deliver up TO the said
City and Suburban railway all its
property of every kind in his possession,
and the order heretofore granted appoint
ing a temporary receiver shall be no lon
ger in force after the fling and approval
OF said bond.
1t is further ordered that the bill proceed
as usual in equity for the determination
Of all the issues involved in the litigation.
1t will be seen that the result of the
order is to place the bondholders on solid
ground. The bond will protect them
against any mismanagement of the prop
erty or diversion of its earnings or any de-
signs that Mr.. Parsons and his associates
might have upon the property if they
should have any such designs as has
been charged against them.
The proposition to furnish such a bond
was made, as was stated would be done
in Tuesdays morning News by the repre-
sentatives Of the City and Suburban. The
answer of the railway company to the bill
filed by Mr.. McReynolds was read by Mr.
duBignon and denied the allegations made
| by the bill for receives as TO waste and
mismanagement and intention to depre-
ciate the security of the bondholders on
the part of Mr.. Parsons and his asso-
| ciates throughout In conclusion the an
| sWer stated that the company stood ready
| upon the discontinuance of the receiver
| ship to execute a bond of $4,000 to be
| approved by the court or committee of
| the bondholders, conditioned for the pres
| ervation of the property covered by the
| lien of the mortgage deed against waste
and deterioration and the unjust or i'm
proper diversion Of any of the legitimate
revenues deriVable from a proper opera
! ton of the lines of the company.
Capt Fl. c. Cunningham, in making
! the answer for the trustee for the bond
! holders, stated that the trustee sided with
| the company and requested the dismissal
of the receiver upon the giving of a bond
conditioned as stated, but to the ale
| cations made in the petition for the re-
| ceiver the trustee sided with the petit
| TONER and requested the adjudication by
| the court of the matters mentioned as
to the claims of George Parsons and
| others as to the ownership of certain
| property which the bondholders claim
! is covered by their lien upon the property
! Mr. II. L. w. Palmer representing the
plaintiff, Mr. McReynolds, stated that he
was perfectly willing TO agree to the dis
missal of the receiver provided bond
was furnished as stated, which should
meet the approval of the court. All par
ties being agreed on this point Judge
| Speer said there was nothing further left
| to do but to decide upon the wording
/ of the decree which was rendered as
| above.
There was some contention among the
attorneys as to who should bear the G.
penses of the receivership. Judge Speer
! decided that these expenses should be
/ borne by the defendant company. The
receiver was allowed $500 for his ser
| vices and $3.50 for the services of his coun-
| sci and of an expert bookkeeper.
In the answer of the railway 1t is eX-
| pressly denied that all of the capital stock
| with the exception of fifty shares is owned
and controlled by George Parsons and j.
] ~ Hartman. The following are named
| as the stockholders of the company with
! the amount of their holdings: George Par
| sons us, ]. N Hartman, 49, Henry Par
sons. 100. Savannah Investment Company,
! 49, e. ]. Thomas 3, c. $. Hardee, ), !. b.
| Squire 3, d. H. Chamberlain, ;, T. NJ
Cunningham, 4, J. H. Johston. l, Luke
Carson l. 1t denies that Mr. Hartman is
acting as the personal representative of