The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-07-08
THE REcEIvERsHIP PERMANENT
The Electric Railway Likely TO he
sold In Septcmher


sold In September.
The answer OF the Electric Railway
Company and the order Of Judge Emory
speer in the case brought against the
railway company for foreclosure by the
Oglethorpe Savings and Trust Company.
We're filed in the United States court here
yesterday. Receivers John r. Young and
j. ). Collins and the attorneys in the case,
Messrs. W. G. Charlton and William Gar
rard, reLuFned 10 the city from Macon
yesterday morning.
II appears from the proceedings in the
case that there is no reason whatever 10
delay the sale Of the property. and in
fact Judge Speer has directed that a de-
cree Of sale be prepared as early as pos
sible and submitted to him. IL is the idea
Of those interested in the matter 10 have
the sale take place about September. The
decree, therefore will be prepared and
signed no doubt within a few weeks.
In its answer 10 the bill Of the Ogle-
thorpe Savings and Trust Company the
Electric Railway Company not only ad-
mitted all the allegations made with re-
gard to its bonded Indebtedness and its
inability TO pay the July coupons, but
went on to make a brief explanation with
regard to the matter
The answer says that at one time there
was a fair prospect of the success of the
reorganization plan. By agreement of
the bondhOlders the bonded Indebtedness
was reduced from $4,000 TO 500 900, and it
was thought that by utilizing the outside
property, together with the surplus earn
lngs, all the debts OF the property could
be cancelled. Under the receivership. Is
per cent OF the Indebtedness was DIS
charged. 1t was expected TO reduce II
sun further, but owing to a rulnous com
petition. as is stated, and the prevailing
and continued hard times, the earnings
OF the road have not been such as to
contribute measurably to the reduction Of
me dent. There Is no money available, IL
is stated, with which 10 pay the July
coupons, and to add to the company's
embarrassment certain Of the original
bondhOlders have refused TO come into
the reorganization. The amount due them,
1t is stated, is insignificant but sim ii is
beyond the power of the company to care
for it, and these holdings constitute
constant menace to the Othe bondhOlders.
1t is stated that everything possible has
been done in the cOmpanys interest. The
bOndholderS contributed one years cou-
pOns TO the company, and no further sac
riice should be asked of them. The APP
swer stated that the company ma no OBJ
lection to urge to the prayer of the p~.i-
ton.
The order of Judge speer constituted.
r. Young and j. S. Collins as permanent
receivers, with the same powers they
have heretofore held. 1t was provided
that all liabilities incurred and assumed
under the receivership in the H. A. Pc
wear cause shall be assumed by the re-
ceiVers now appointed. The complainant
was directed to present to the court, with
all reasonable expedition, final decree
of foreclosure and sale. 1t was also di-
rected that there be presented to the
court promptly a statement of The unad-
justed expenses under the Pevear cause.
Judge Speer has allowed the appeal
from the decision of Judge Boarman. in
the case of the Admission National Bank
against the Cuyler and WOODBURY. rail-
road. The Morning News gave sometime
ago a statement of the assignments of
error and the grounds of the application
for appeal. A decree was rendered
against the road, short branch line from
Cuyler, in Bryan, to WOODBURY., in Bull
lOch county, and il was claimed the de-
PENDANTS were not given due notice of
the hearing. There was an order which
provided all parties at interest should
have twenty days notice of the hearing.
which they claim was not received, and 1t
is also stated no order was ever taken
providing for hearing the case In Macon.
There were many other grounds on which
the appeal was sought, which have al
ready been stated. Judge Speer allowed
the appeal to the United States circuit
court of appeals at New Orleans, and
bond for $500 was given for any losses
that might be sustained.
Judge Speer has, as stated in the Morn
ing News, signed an order changing the
date for the sale of the property of the At
lantic Shortline railroad. This property
was ordered sold under a decree in favor
of the Central National Bank of New
York, to which the roads Indebtedness is
between 1000 and $50, 900. The property
was to have been sold in Savannah from
the steps of the custom house on Aug bur
by modification of the decree which was
filed in the United States court here yes
terday the sale has been changed to Aug.
IA, and viii take place in front of the
county court house of Emanuel county.
The property will be sold by Mr.. John r.
Young its receiver.