The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-01-28
TO DISCHARGE THE RECEIVERS
PROBABLY THE NEXT MOVE II
CENTRAL AFFAIRS.

Gen. Thomas and MIR. Crawford Here.
supposedly to Look After Matters
in Connection With winding Up
the Reeeivershfp and Turning the
Property over 10 the New Com
Pany-The Centrars Overflow
Property.
Gen. Samuel Thomas and Henry Craw-
ford. Esq. were in the city yesterday af-
ternoon and last night in conference with
Receiver Conner Of the Central railroad.
The purpose Of their visit is not known.
but ii is supposed to be in connection with
completing the arrangements for the per
manent reorganization Of the Central prop
critics, the discharge Of the receivers and
turning over Of the property to the new
company at an early date.
Gen. Thomas and Mr.. Crawford came
here from Charleston where they attend
ed hearing before Special Master ]. +.
HagoOd with reference to the Port Royal
and Western Carolina railroad. The follow
ing dispatch from Charleston last night
explains the object of their visit there:
Before Special Master J. +. Hagood
to-day Gen. Samuel Thomas and Mr..
Thomas +. Ryan, recent purchasers of
the Port Royal and Western Carolina
railroad swore that they did not repre-
sent the Southern Railway Company when
buying the property. The counties of
Spartanburg and Laurens have brought
suit to prevent the confirmation of the
sale on the grounds that the Southern
was the real purchaser and that il was
against the law for one road TO buy or
control a competing line. The case will
a.
United States circuit court for a final
hearing on Wednesday"
This statement bears out what the
Morning News stated some time ago 10
the effect that the Port Royal and Wes-
tern Carolina was purchased with a view
or making II part of an Independent
system, and that ii would be separated
entirely from the Central. The report is
that it is intended TO use that system in
connection with the Port Royal and Au-
gusta whenever that property is sold to
form an Independent system with Port
Royal as an outlet and with the western
terminus at Knoxville. Such system
would, Of course, be rather a competitor
OF the Southern, or at least of some of
its dependent lines.
The question Of the confirmation of the
sale of the Port Royal and Western Car
DINA will come up before Judge Simon
ton in Charleston on Wednesday, when
the answer of Messrs. Thomas and Ryan
will be made showing that the property
was not purchased for the Southern Rail
way Company. Both Mr. Thomas and
Mr.. Crawford Will probably be present at
the hearing.
There was TO have been a hearing be-
fore Special Master George w. owens
yesterday with regard to the claim of
Messrs. Thomas and Ryan that they were
entitled to what is known as the over
flow property of the Central on the ground
that it is covered by the mortgage under
which they purchased the property. This
overflow property is TO be sold by Com
missioner Leaken on Feb. A. on account
of the absence of Mr.. Crawford, however,
hnef ri FtFug tsaA
row. when IL Will probably have to be
postponed again as Mr.. Crawford will have
10 go to Charleston to be present before
the hearing before Judge Simonton.
When the assets from the sale
of the overflow property are
turned into court there will
no doubt be considerable litigation
over them. If the court should hold that
they are not covered by the mortgage,
and that the proceeds should so to the
judgment creditors, it is said that each
would get something like two cents on
the dollar. OF course the property will be
bid in at the lowest possible figure and
probably by Messrs Thomas and Ryan.
The judgment against the Central Rail-
road and Banking Company, among
which the distribution would have to be
made, are something enormous. The col
lateral back of the floating debt sold for
NOCO,OOO, leaving an unsecured indebted
ness of S5m0,000. The Central railroad it
self sold under a mortgage of $780, 600
for S,OOO,000, leaving an unsecured indebt-
edness of S6,OOOO0O. There are also seve-
raj unsecured claims of the same nature
including the debentures which are in the
possession OF Messrs. Thomas and Ryan.
The outstanding judgments against the
Central Railroand and Banking Company
for personal injuries and losses of bag
gage and freight amount to about 100000
a very small figure in comparison with
the other unsecured debts, so ii will be
readily apparent how small an amount
such creditors will receive. This, how
ever, does not include the judgments
against the receivers of the property
Those judgments against the receivers,
which have been established in the courts.
are as good as gold, and every dollar
will, of course, have to be paid The
hearing with regard to the overflow prop
erty Will no doubt take place sometime
this week.