The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-11-26
PUT IN A RECEIVERS HANDS.
JOHN ID. CARsWELL IN CHARGE OF
THE GUARDS PROPERTY.

second Mortgage BondhOIders,
Granted by Judge seabFook.
Guards Called Upon 10 show Cause
Dec. Why Receivership should
Not BE Permnnent-Attorne and
Receiver Receive no COmpenEa-
ton for Their services-Nhat the
Attorneys say of the Action and
the Property.
AIR. John d. Carswell has been appoint
ed temporary receiver Of the Savannah
Volunteer Guards. An order TO that effect
was issued yesterday by Judge Paul E.
Sea brook Of the Superb Court Of the
Atlantic circuit, Judse Failigant. by vir-
tue of being a life member Of the Guards,
being disqualified. He referred the petit
ton of the Oglethorpe Savings and Trust
Company, The movers for the recelyership.
TO Judge Seabrook.
Upon reading the petition, Judge Sea-
brook gave it his sanction and ordered It
filed. He appointed Mr. Carswell receiver
and directed that all the property Of the
Guards except military equipment and
other property Of a military character, be
held by him until the further order Of the
court. Dec. was fixed as the date when
the Guards should appear before Judge
Seabrook to show cause why the petition
for q permanent reeeiyership should not
be granted.
For some months 1t has been regarded
as extremely probable that this action
would be taken, though il will be a mat
ter of some surprise that the mover is not
the Penn Mutual Life Insurance Com
pany, which is secured by first mortgage
bonds on the property of the Guards. That
the corps was In bad financial condition,
has been generally known, having default
ed on the interest due on its bonds on
three successive occasions.
A few weeks ago an effort was made 20
tide over the distress, and possibly remove
il by scheme of consolidation Of the
property interests, with the companies of
the First Regiment a considerable sum
being subscribed for this purpose, and TO
shold off the Penn Mutual, until the pro-
posed scheme could be put into execution.
The companies of the First Regiment did
not fall in readily with the plan. and hence
the proceedings by the Oglethorpe Savings
and Trust Company, which is acting, in
addition to its own interests, for other
holders of second mortgage bonds.
Though the petition for receiver was
filed by the Trust Company through its
attorneys, The Penn Mutual Life Insur-
anee Company viii yet be the first to ben
eft its holdings being covered by the
first mortgage. The petition shows that
such is understood, but recites that the
interests Of an concerned would be best
conserved by a receivership.
The attorneys for the Ogiethorpe Savings
and Trust Company were seen last night
and gave out the following statement:
THE purpose of the receivership is to
protect and preserve the rights of the cred
itors. without prejudice TO the rights Of
the Guards. The allegations of the petit
tion set forth in detail the grounds on
which the application for receiver is bas-
ed The condition of the property of this
military organization was such that fore
closure proceedings OF some kind were de-
slrable as well as necessary and ineVita-
bic. The first mortgage debt held by the
Penn Mutual Life Insurance Company, was
due ana payable; the second mortgage
debt, held principally by local bondhold-
ers, for whom the Oglethorpe Savings and
Trust Company is trustee, is also due
and payable.
Other debts were due, and these facts
have for some time been well known by
the public generally, as well as by the
members OF the corps. A state of suspense
as to what the outcome would be has ex-
listed for some time, and has been quite
hurtful to the battalion in'its military ca
pacity, besides being prejudicial TO its in
terests as holder of corporate property.
These considerations made il desirable to
the Guards, as well as TO the creditors
that some action be taken at once which
would result in rehabilitating the status
OF the corps.
1T is hoped and believed that, under
the protection of the court a plan of reor-
he off Cd 4 TT.
the debts of the corporation can be adj
Justed or arranged In the meantime, this
proceeding does not affect in the slightest
degree whatever the military organization
but relates to il only as a holder of prop
erty The court win have nothing to do
with the corps as a military unit but Will
simply take charge of and handle its prop
erty for the benefit of creditors and of all
parties concerned. TX is believed that this
proceeding will help, rather than hinder
or impair the military efficiency and shirt
OF the battalion, and that officers and men
VIII now take more interest in their mill
tary duties, and will feel a greater degree
OF enthusiasm in looking toward an in
creased membership of the respective
companies.
1t viii be seen by referring to the petit
ton that the arsenal property cost the
Guards $4,000 ana upward TIE building
was erected, too, at a time when labor
low figure. Prominent real estate dealers
mere estimated that the ground alone on
which the arsenal property rests is worth
more than the entire debt of the Penn AIu-
tual Company. The property might be
termed one Of various values, depending
largely on the way in which it is handled
Whh comparatively moderate outlay it
could readily be converted into the hand
soonest theater in the South, and stili leave
al necessary quarters for the battalion.
me site OF the building makes il admir-
ably adopted to such purpose. II
could readily be made 10 house the en-
tire First Regiment Of Infantry. Under
the protection of the Superior Court 1t
wllAbe handled in such manner as 40
make 1t yield the best possible returns.
The petition also recites that the attor-
neys for the moving creditor expressly
waive all charges for services to which
they might be entitled on account. Of this
litigation The receiver also valves ali
of his charges. On account Of the emphat-
&c and universal interest and sympa, nv
felt for tho an