The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-01-27
RETURNED TO ITS OWNERS.
REMARKABLE RECORD OF MACON's
WATER AND GAS COMPANY.

Tlaced in the Hands of "A Receiver
Who Has Put II Firmly on Its Feet
and Hands Back to the StOckhOId-
ers a Plant of the Finest Charac-
ter and of Vastly Greater Capaci-
ty-One Case Where Investments
Were Not Swept Away.
In the United States Circuit Court to-
day, in the case of CarsweI VS.. Macon Gas
Light and Water Company, Judge Speer
passed a final order returning to the pos
session of the defendant company Its prop
critics, valued al nearly 100000. The his
tory of the case in the court IS one of the
most remarkable on record
In May. 1894, the gas light company had
defaulted in the payment of interest on
its entire four series of bonds, aggregat-
ing $4,000 besides large floating indebt-
edness. The directors declared their ina
bility TO meet the matured obligations of
the company. Messrs. Alexander Proudht
and Marion Erwin, attorneys for Carswen,
a holder of third mortgage bonds, filed a
bill in the United States Circuit Court at
Macon, which alleged that while the COM
pany was insolvent in the sense that il
could not meet its obligations, that with
proper management under a receivership,
and fairly arranged reorganization of its
outstanding debts and securities, the in
terest of all parties could be saved, and the
properties returned solvent to it's owners
without a foreclosure sale, which would
have swept out all rights of stockholders
and Junior creditors.
Judge Speer appointed Mr. T. D. Tins
ley receiver. AT that time the sas plant
was badly run down, and the water pump
ing station was situate on rented land and
the supply totally inadequate to meet the
demands of the growing city of Macon and
its populous suburbs.
Shortly after the appointment of the re-
ceiver all the parties to the cause got
together and agreed to carry out a re-
organization on the general plan outlin-
ed in the bill. This was assented 10 by
the Farmers Loan and Trust Company Of
New York, trustee for the bondholders
represented by Bacon & Miller Of Macon,
and other counsel. One hundred thou
sand dollars of receivers certificates were
issued and sold, and with the proceeds
one of the largest and most perfect mu-
nicipal water plants in the state was
CiNNttu Oi Tue OtuiulSee river three miles
above Macon on the companies own lands,
and new and capacious mains were laid
where decided throughout the city The
plant has just been completed and has
been pronounced by experts to be one OF
the best in the country. The security
holders, creditors and stockholders per-
fected their reorganization without a sale
of the properties, SO that all creditors and
stockholders are protected. That the re-
organization agreement was made effec-
tive, it is stated, is largely due to the
financial skill of Stuart Wood of Phladel-
phia, chairman of the reorganization COM
mittee.
large number of Macon lawyers in
terested in the case We're visiting Sa-
vannah IN attendance on court in wind
ing up the case. All parties were seemed
TO be in high spirits over the rehabilitation
of the company as a solvent concern, and
the very satisfactory result achieved, 1t is
one case in which a receivership has saw
ed instead of destroying the rights of liti-
giants.