The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-03-15
[. AND N. AFTER THE LEASE.
WANTS THE ENTIRE GEORGIA
RAILROAD CONTRACT.

Riu Presented TO Judge Pardee in
New Orleans, and Set For n Hear
ing Before Judge SDeer in Macon
March 1S-The Suit VIII Be Filled
in This Division of the Southern
District But Has Not Yet Been Re-
ceived-Givcs the History of the
Case and Claims the Sole Owner
ship of the Lease.
King & Spalding of Atlanta, represent
ing the Louisville and Nashville railroad,
will bring suit in the United States court
against the Central of Georgia Railway
Company, the Georgia Railroad Company
and Messrs. Thomas and Ryan for the
purpose of establishing, if it is possible
to do so, the title of the Louisville and
Nashville railroad to the entire holding
of the Georgia railroad lease, which as is
wen known. has been claimed by that
road for some time.
The suit will naturally be brought in
the circuit court for this division of the
southern district of Georgia, as this is
the home Office of the Central of Geor>
gia Railway Company. 1t has not been
placed on file here as yet. but will in all
probability arrive here by mail this morn
ing, as it was presented to Judge Pardee
in New Orleans on March II. Judge
Pardee signed an order to show cause
fixing the date of the hearing March Is,
before Judge Emory speer at Macon.
The bill is a lengthy document and re-
cites the history of the Georgia railroad
lease to William wadley. the transfer by
him to the Louisville and Nashville Rail
road Company and the Central Railroad
and Banking Company of Georgia, the re-
ownership of the Central. the purchase
of its assets by Thomas and Ryan and the
reorganization under the name of the
Central OF Georgia Railway company. II
is shown that this interest In the Geor-
gia railroad lease was pledged to secure
debt in New York. and that it was
sold in default of the payment of that
debt and bid in by the Mercantile Trust
Company The bill then goes on to say
that Thomas and Ryan claim to be the
owners of this interest in the lease, and
it is also claimed by the Central of Geor-
gia Railway Company
The Louisville and Nashville Railroad
Company Claims Nndt iut tepi6ld AdiA-
road lease was not an assignable paper,
and that therefore neither the Central rail-
road of Georgia nor Messrs. Thomas and
Ryan own 1t. The $4,000 which was set
up by the Central as a guarantee, IL Is
claimed in the bill, for the faithful per-
Torrance of it's obligations as lessee, has
been substantially wiped out, and the
company has defaulted on the rental and
failed to make the security good.
f. - "a "a C.anrpiq railroad
called on the Louisville and Nashville
Railroad Company to make the deficit
and the security good. and their action
amounted TO a re-entry as against the
Central Railroad and Banking Company
of Georgia and the parties claiming I'M
der it. and the Georgia Railroad Company
elected TO look to the Louisville and
Nashville for the whole of the rental and
security, and the Louisville and Nash
Vile thereby became invested with the
whole of the lease.
1t is claimed that the application of
Thomas and Ryan before Judge SpeeT
shows that the real parties
at interest are not made par
ties to that suit. Thomas X
the real parties and the Georgia Railroad
and the Central of Georgia railway and
the Louisville and Nashville being the
real parties.
None of the officers Of the Georgia all
road were put down as parties to the
Thomas and Ryan proceedings, nor were
they put down as such in the foreclosure
proceedings. The petition asks for a con-
struction of all the contracts and the ad-
Judication of the rights of all the parties
1t sets up that If it is held that these
rights constitute a partnership between
the Louisville and Nashville and the Gen.
trail Railroad and Banking Company
of Georgia, the Louisville and Nash
Vile cannot now be held into a partner
ship with its consent and it objects, and
If it is found to be a partnership, the
Louisville and Nashville asks that IL be
wound up and the leasehold interest he
sold out, and that the Louisville and
Nashville, the surviving partner, be al
lowed to conduct the business until the
matter is passed upon.
The bin will. in all probability, he re-
cerveo mere by mail this morning. Messrs
Lawton & Cunningham, the attorneys for
the Central railroad were asked about the
matter yesterday, but this is the first they
have heard of 1t. as they have not been
served with copy of the petition. Service
Will probably be perfected to-day This
petition will no doubt make quite differ
ence in the proceedings which have al
ready been brought by Messrs. Thomas and
Ryan to establish their right to half an
interest in the lease