The Savannah morning news., 1900-10-08
WANTS To cEr ssos.ooo.
". ". FRrrar's Amendcd suit Against
the southwestern Railroad.

was taken saturday says the Macon T,Ie-
graph. when the attorneys ~ the plaiotin
nle,i with the clerk 90 the Superior Court
an amendment TO the case Of r A. Far
rar rs. the Southwestern Railroad Com
pnny. This suit was commenced len July.
iSs9 IL has been postponed from TIM 10
time, uu' the trial viii take place az the
opproachug November term Of Bibb SI-
p,rior Court
The case Is sequel q the Central
railrsad receivcrahip and springs out OF
the troubles and complications with which
the Southwestern Railroad fen into at
that time The suit will bee a matter OF
keen interest 90 great number OF pco-
pie especially 10 those who were stock
holders of the Southwestern during that
receiVer.hlp as it is supposed 90 oftcr
them an opportunity TO recover some part
OF their losses The plaintiff sets up In
his petition that when the reorganization
Il the Genital Railroad took place. the
Southwestern rcchyed the large sum II
St5.iS34 in ccmpromise Of the rentals
which Zen due during the rcceivcrshig.
but which had not been paid. He alleges
that the Southwestern Railroad was leas-
ed TO the Central Railroad Ia lsi9. but
/ that according 20 the terms OF the lease,
I the rental was 10 be paid directly 20 the
| stockholders Of the company. aud not 10
the company itself Tho time for payment
was the months OF June and December IN
I every year.
The following extract from the lease Is
set out In the petition
And the said the Central Railroad and
I Banking Company Of Georgia hereby COW
I enauts ana agrees 20 and with the said
I the Southwestern Railroad Company that
I during the months OF June aud Dec mner
I every year during the continuance OF the
I term hereby granted. q will declare and
I pay To- the stockholders OF the said South-
western Railroad Company dividends
which shall bear 20 the dividends declar-
I ed and paid 60 i,s own stockholders the
ratio OF 20 10. that is 20 say s. 10 each
! share OF outhwestern Railroad stock for
| every $40 declared and paid 20 each share
/ OF It's own stock and that no semi annual
I dividend so declared md paid 60 the
stockholders OF the Southwes iern Rail-
road Company shall be less than at the
rate OF per ceutum per annum on 'he
par value OF their stock.
The plaintiff claims that as he sum Of
ss.n. iS3 "A was raid Go the Southwestern
az . per cent. compromise oi The un-
paid DIVIDENDS due during che receiver
ship this sum OF money. therefore. Oh
/ not belong 10 the Southwestern Ralitotd
but to those people who were stockholm
| ers in the Southwestern company during
the reoeivership a. the time the regular
dividends should have been paid
The petition goee on to state that the
| peopte who owned stocks at the periods
| when dividends should have been paid DID
not lose their rights afterwards selling
| their stock but that they were ana are
| stil the true owners Of the Ss6t. 1854. IN
| proportiou 10 the number Of shares held
by them
IL seems that the Southwestern did not
deal with this money according 20 the 20
| titioner's ideas Of what should have b,th
done. but paid out $4,000 Of v a. divi-
,iend to those who were stockholders on
Dec. a, 1896. and also about $1,000 ~
| feea ,omnivsions etc and laid aside
about $500 az a reserve fund IN the
| treasury The petition claims that TINS
| was an illegal and unauthorized diversion
| OF the money from its true owners anu
| saws that tho true owners OF the money
| are the people who were stockholders ~
the Southwestern on Dec. 81. lhs- June ~
1893 Dee 81 1873. June 30. 1884 Dec. o.
1894. June -. 1895, and Dee 81. lSo. ma
those who were stockholders on Dec. 81.
issa were entitled. under the settlement
with tho Central 20 dividend OF ~ per
cent on their stock or &2so pr share.
out OF the fund and this applies whether
they afterwards sold their stock or not.
Tho came. II g. contended. h. true Of
. hos. who were siockfDldcrs on June
a. 1893. Dec 81 1888. June %. lss', Dec.
an ia, ard June 30. 1856 ali Of these he
ing entitled 10 s.. - per share. Those
/ VINO were stockholders on Dec. 81. 1879.
are entitled TO a dividend OF $50 per
share.
The encc, Of this will be. II the plaintin
wins. TO give something In the way 81
a dividend TO those who were compelled
10 sell their stock during the CentraI
recelvershlp because ~ the low price to
which thlr stock feli at this time.
The plaintiff Is represented by Messrs
| Henry 4 Alexander OF Atlanta. and
George S Jones OF Macon. and the
Southwestern Railroad by Messrs Dem
mark Adams & Freeman Of savannah.
and Hardeman, Davis & Turner OF Ma
con.
Tho Southwestern Railroad Company
has filed a lengthy answer Of more than
eighty typewrtttcn pages. IL gives "A
| fun history Of the Southwestern Rail
reads lease 10 the Central. and the dan-
ger that threatened that road during the
| receivership OF the latter road. when an
attempt was made 20 foreclose the tripar-
| tite mortgage against the Southwestern.
and to sell that road to pay these bonds
which eliminated IN the decree rendered
by Judge jackson Of the supreme Court
l OF tho ANlttI Et1tfrs NthfiANN me NhNfii~
western road 10 be- sold 10 pay one-thrd
OF the tripartlte mortgage OF onc-third OF
10000.
The answer sets out the settlement that
I was made with the re-orEanzed company.
| on the basis Of per cent for defaulted
| rentals. and claims that the money real
lied from this settlement belonged 10 the
| Southwestern Railroad. and not TO the Old
| stockholders. as claimed by the plaintiff
/ The Southwestern further contends IN
It's answer that the petitioner and all
others who may have been entitled to the
money have lost their rights by acquiesc-
that all II did In reference 60 this money
was ratified hy unanimous vote Of the
stockholders at the meeting OF Feb. u,
1896 and by the stockholders accepting the
dividend declared on Dec. %. 1885 without
/ making any protest. Besides this. runner.
/ Gus other pleas are made 10 show the
/ plaintiff and the other stockholders are
not entitled TO this money. The answer
/ nlcd Is a strong ana able nresentation or
the claims Of the Southwestern.
The amendmen' undertakes TO answer
! many conditions OF the answer, ana says
that the ratification claimed by the de-
PENDANT company for its acts vas unau-
thorlzed and void. and that the stockhold-
/ crs have not lost their rights thereby.
| This amendment prays che court 10 APP
1 point u receiver who shall proceed 10 col
/ leci the various sums Of money due the
stockholders. with : per cent. interest II
also prays that the company muy be COM