The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-06-18
EAGLE AND PHENIx'S FIGHT.
Sensational
Brought

sensational charges BrOug IN I
Against the Directors.
Atlanta, Ga, June 1.-THE Eagle and
Phenix mill case was called in the Unit
ed States court before Judge Newman this
morning, and a start was made towards
unravelling the complications arising from
the appointment of two sets of receivers
for the company, but finally the hearing
was adjourned until tomorrow.
Shortly after the case had been called
the Columbus stockholders and interested
parties sprang a sensation by charging the
directors of the company with collision in
the matter Of seeking the appointment of
receivers in both the state and federal
courts. In order to give an opportunity for
the directors TO meet this charge, the
postponement was granted by Judge New
man.
When the case was called this morning,
the court room was crowded with plain
tiffs, defendants and attorneys, Messrs.
Cox and Abbott represented the Eagle and
Phenix mill company; Messrs. Glenn, 5la-
ton and Phillips representing Messrs. Big
by, English and Jordon, the receivers APP
pointed by Judge Newman. w. A. VIM
bush represented e. p. Dismuke and j. w.
Murphy, the receivers appointed by Judge
Butt of Columbus L. r Garard and w.
d. Ellis, the attorneys for the American
Trust and Banking Company, the trustees
of the mill; u. w. Martin, representing the
Cheney estate and Mrs. Emma Cheney, a
large stakeholder in the company; and c.
A. Collier, representing the directors of
the company.
l.. f. Garard and E. w Martin were the
first heard. They presented the various
petitions asking that the miles be placed
in the hands of receivers In presenting the
petition Mr.. Garard charged the directors
of the company with collision, that they
had formed a combination to freeze out
the small fry and put the mill entirely in
the hands of the larger stockholders.
Mr. Collier in answer stated that Mr..
Garard had no right to make any such
charge in as much as he was not a party
Mr. Garard then asked the court to post
pOne the case until 3 o'clock that he might
become a party and be allowed to prove
his assertions.
Judge Newman was about to grant
the request of Mr.. Garard when Mr.. Coll
Ter stated that the directors had had nc
opDortunity to answer the charges of Mr.
Garard. He stated that there would be
meeting of the directors of the com
pany this afternoon, as they had been
telegraphed for and We're on their way
| here He asked the court to postpone
the case until tomorrow morning, after
this directors meeting.
In the petition of the stockholders op-
posing the receivers of the federal court
| as read by Mr.. Wimbush, it was alleged
that neither J. S. Bigby nor j. w En-.
glsh are fit or proper persons to be re
ceivers for the property. J. 5. Bigby, i
is charged, is mainly to blame for The
| mismanagement of the affairs of The
company.
w. d. Ellis, representing the trustees
! showed that the depositors of the saw
| ings bank had a contract with the com
| pany, by which they had a prior lien OF
! the entire property of the company. Re
! gardless of this agreement said Capt
| Ellis the company issued bonds to tn,
/ amount of 900 and sold them. TIL
/ defendant had so shaped ii as to Civ
/ the entire proceeds to certain depositOrs
! and left others out
AS a result of'the litigation, three suit
to recover money loaned to Judge John 5
/ Bigby, president of the Eagle and Pheni,
mills, have been filed by parties here
/ The Capital City bank sues to recoVe
$4,000 principal and interest, money loan
! ed on notes of the Eagle and Phenix Com
/ pany, indorsed by Judge Bigby. Whe
/ the money was loaned there was q pro
vision in the notes that they would be
! come due Immediately whenever the sc
! curity was not sufficient and was not mad
! sufficient. The makers of the note
I agreed to make the security az all time
not less than 80 per cent. The bank hold
as security twenty-five bonds of the Eagl
| and PheniX Company, each for $1,000 an
/ allege that they are now worth only hal
1 their face value.
]. T. WarnOck brings suit against Judg
Bigby to recover 5000, with interest, an
the third suit is brought by J. Bethun
against Judge Bigby to recover S73S, wit
| interest. He asserts like the others tina
! he Endorsed for the accommodation of tn
| Eagle and PheniX Company