The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-05
M. G. AND A. SALE IN A MIDDLE.
THE CENTRAL RESTRAINED FROM
DELIVERING THE BONDS.

Claim They VIII he Deprived OF
All Guarantee Under the Middle
Georgia and Atlantic Endorsement.
They Ask For n Receiver For the
s39G,OOO of Bonds Which the Cen
trail Was to Turn Over to the VI. G..
and A.-EatOnton Branch BendhOI-
ders Want These Bonds Substitu-
ted as Their Guarantee in Place of
the Property.
Judge Robert Falligant signed a tempo
rary injunction yesterday restraining the
Central of Georgia Railway Company
from delivering to the Middle Georgia
and Atlantic Railroad Company the bonds
| alleged to have been agreed upon between
them as the purchase money for the prop
erty of the latter company consisting of a
line of railroad extending from AIilledge-
vile to Covington, a distance of sixty
five miles,
The restraining order also applies to the
Middle Georgia and Atlantic Railroad
Company prohibiting it from distributing
any of these bonds among the former own
ers of the property, or disposing of them
in any way. Judge Falligant has directed
both the Central and the Middle Georgia
and Atlantic Railroad Company to show
cause before him, Saturday, Feb 10 at
10 O'Clock, why this injunction should not
be made permanent, and why receiver
| should not be appointed to take charge
OF the bonds which were to have been de-
livered by the Central to the Middle Geor-
| gia and Atlantic Railroad Company
The temporary restraining order was
granted on the application of Mr. L. ].
| Guilmartin, John j. Gaudry and Mary E.
Flannery filed in their behalf
by Mr.. Charles N. West.
Mr.. Guimartin appears as the
| owner OF $56,5OO of the bonds of the Eat
onton branch railroad. Mr.. Gaudry as the
| owner of $4,000 and as trustee for $50,
| ana Mrs. Flannery as the owner of 81 0G0
| OF the same bonds The total issue of
these bonds is S16S,00O and they are dated
June !, 1886. They are per cent. thirty
| year gold bonds.
After these bonds were issued the Eat
onton branch railroad was sold to the
middle Georgia and Atlantic Railroad
| Company, and in lieu of a cash payment
! Tor the property the company accepted
me guarantee of the Middle Georgia and
atlantic dnal m, Railway Company on these
| railroad was forty-four miles long, ex-
| tending from Eatonton so Covington and
tne Eatonton branch railroad was TWEEN
| ty-one miles long, extending from Mil
| ledgevlle to Eatonton
IT was on Christmas day that the trade
| between the Central and the Middle Geor-
ga ana Atlantic was made, the former
| company purchasing the property of the
latter, and by this sale of all of it's prop
! erty 1t IS charged in the bill that the Mid
are Georgia and Atlantic has
deprived itself entirely of ali
p pi[9rey whereWith to meet its
| railfoad bonds This sale it is stated put
| II out of business as a going concern. and
MADE absolutely worthless the security
f1ap
1t was alleged that no payment was
| T PHpy me Middle Georgia and Atlantic
t HLdliroa 9 company of its guarantee on
these bonds, but that while thus strip
| ping itself of all of its property by the
SAFE, 1t left al of its guarantee upon the
| bonds amounting, principal and interest
to!over $4,000, outstanding. with no nron,
| came inscYent.
! central, 1T is stated, was not in cash. hui
| IN bonds of the Central railroad AZ nc
were G 70 f b mile less $lSs0o which
OF the Central to the amount of 1896 600
| We're to be turned over to the owners Of
1 me MIddle Georgia and Atlantic railroad
| properly, and that company was to retain
! tral. ~ INC OeH
The plaintiffs charge that it is the de-
| sign of the Middle Georgia and Atiantio
Railroad Company to distribute the S396 000
! OF ponds among its stockholders in ac-
| eordancs with their interest and not 10
! retain any portion of them as security TO
| its creditors for the performance Of rs oh h.
| ngaton OF guarantee. Negligence and
| carelessness with regard to the interests
and rights of the plaintiffs are charged.
| II IS charged that by the transfer of the
| property 70 the Central, the Middle Geor-
| ga ana Atlantic has disabled itself from
| performing its contract, and therefore the
| whole of the said guarantee upon the S16S
OVO'ot bonds has matured and become due
The $4,000 of bonds agreed upon. It is
| 9 "a e. nave hot yet Deen turned over by
Lne central q, TO the Middle Georgia and AT
| iantlc Railroad Company, but the Central
| Is preparing to comply with its contract
in this respect, and it Is alleged that when
| this shall have been done the plaintiff's
| will have wholly lost all guarantee on
their bonds. given them by the Middle
| Georgia and Atlantic, and upon which
| they mad right TO rely.
The plaintiffs call upon the court to SUBJ
! stltute the bonds of the Central railroad
winch are tfty-year, five per cent. gold
| guarantee before its sale. They ask first
! that the court enjoin the Central from de-
| llvering the 1896, 900 of bonds to the Middle
| Georgia and Atlantic, and that the Middle
! Georgia and Atlantic be enjoined from dis
| tributing them should it by any Chance
| come into possession of them.
In the next place the plaintiffs ask that
| the court appoint a receiver who shall be
authorized and required to obtain from
| the Central of Georgia Railway Companv
! the bonds which it has agreed to paw the
| Middle Georgia and Atlantic and hold
| them subject to the further orders of the
| required to deliver these bonds to such re-
| ceiver as the court shall appoint. and that
| they be given a decree of payment of their
bonds against the Middle Georgia and At
| lantic upon its guarantee, when they shall
| be decrecd to be due.
As the plaintiffs considered they were i'm
imminent danger they asked the court to
grant temporary restraining order pre-
venting any delivery of the bonds in qies-
ton until the cause can be heard and de-
termined by the court This order was
granted. and Feb. 10, set as the date Tor
the hearing.
The suit will undoubtedly be an inter-
esting one 1t involves some very inter-
esting legal points with regard to the ia
bility OF railroads when they indorse lie
bonds Of another railroad company and
the proceedings will undoubtedly be close
~ watched.