The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-03-30
DISMISSED THE INJUNCTION.
Judge FaIligant Refuses the Eaton
ton BOndhOIders' Petition.

ton HonunOlueFS' reunion
Judge Falligant rendered his decision
yesterday in the case of L. J. Guilmartin
and others against the Middle Georgia
and the Central of Georgia Railway Com
pany, setting aside and annulling the tenn
porary injunction granted Feb. 4, and re-
fusing to appoint a receiver for the bonds
to be paid to the Middle Georgia and At
lantic by the Central as purchase money
for their property.
The order simply says: after hearing
arguments on the rule to show cause in
said case, it is hereby adjudged and de-
creed that the injunction and receiver are
refused and the restraining order issued
Feb is set aside and annulled."
Mr. Charles N. West, the attorney for
the plaintiffs, has not lost any time in
preparing his appeal to the supreme court.
He gave notice of an appeal at once, and a
few hours after the decision was ready he
had made up his brief of evidence and put
it in the hands of a stenographer The
case will be sent up tonight or to-mor-
row at latest. and application win be made
to that tribunal for q quick hearing of It.
The plaintiffs in the case are holders of
bonds Of the Eatonton Branch railroad,
representing about 10000 out Of a total
issue of S16S 600. These bonds were issued
under a deal made with the Middle Geor
gia and Atlantic Railroad Company and
that company put its Endorsement on the
back Of them, and became a guaranter
for their payment. The Middle Georgia
and Atlantic Company, through its cen
tral committee, then sold out its entire
property, lock, stock and barrel, to the
Central of Georgia Railway Company. The
49, Il &C. I - vaau
its guarantee upon the back of the Eaton
ton bonds to replace that Of the Middle
Georgia and Atlantic. and the holders
of some of the Eatonton bonds felt that
they had thereby lost a part Of their Sc
curity.
After this deal was made, through Mr.
West, they applied to the court, asking
that the bonds to be paid by the Central
to the Middle Georgia and Atlantic peo-
pie for their property be put in the hands
of a receiver or trustee, and held up as
a sort of guarantee fund for the pay
ment Of the Eatonton bonds In other
words, they wanted these bonds substl-
tuted as a security In the place where
they considered the Middle Georgia and
Atlantic property formerly stood.
Col William Garrard appeared for the
Middle Georgia and Atlantic, and made
strong argument against the petition,
holding that the security of the Middle
Georgia and Atlantic'S Endorsement had
not amounted to anything, as the Eaton
ton people were aware of the heavy bond
ed Indebtedness on the Middle Georgia and
Atlantic, and knew the property would
not bring one-half Of that Indebtedness.
The Eatonton people. of course, denied
that they had any knowledge Of this. Col.
Garrard also produced several afiidavits,
among which was one from representa-
tiVes of a majority Of the EatOnton bonds,
claiming that the suit was injurious to
these bonds and to the property. He ar
Eatonton bondholders by the Centrars
taking hold of the property was superior
to that given by the Endorsement of the
Middle Georgia and Atlantic.
Mr. West disputed these propositions,
and made an extensive argument for the
security to which he considered his CHEATS
entitled, that of the bonds in trust as a
substitute for the company's indorse-
ment
Judge Falligant did not render any opn-
/ ion or give any reasons along with his
| decision, nor would he give any, not deem
| ing il proper under the circumstances
| The case win go before the supreme court
| on an appeal from his decision, and the
| reasons from both sides in suppoEt-of their
| contentious will be presented there. The
! erly. The case is an interesting one
/ throughout, and the decision of the SUI
| preme court, whichever way 1t may he
| will go down in the annals of law as an
important one.