The Savannah morning news., 1901-11-01
SUSTAINED RAILROADS.
Order Granted by Judge Don A. Par
dee in the Farrar Case.


Farrar case has been handed down by
Judge Don A. Pardee in the Southern
District of Georgia of the United
| States Court, with an order sustaining
the demurrer of the Central of Georgia
Railway Company and granting the
motion Of the Southwestern Railway
| Company to dismiss the intervention
| brought by Robert NJ. Farrar and 9TH
ers. Henry A. Alexander, Esq, of At
| lanta represented the plaintiff. while
| S. B. Adams, Esq, of Savannah APP
peared for the Southwestern and
Messrs. Lawton & Cunningham, gen.
| eral counsel, appeared for the Cen
| trail.
After showing the allegations made
! by the Intervention of the plaintiff,
which are familiar to those who have
| followed the case. Judge Pardee decid-
| ed. in part, as follows:
From this analysis and statement,
it plainly appears that the interveners
ratify the compromise set out in the
| plan of reorganization of the Central
Railroad and Banking Company and its
| properties, which was ratified by order
of this court Nov. l, 1895, under which
| the Southwestern Company received
the sum of $685., 1884 in cash and cred
its, and, as it appears that the Cen
! trail of Georgia Railway Company COM
piled with all its obligations and du-
| ties under said compromise and the or
der of court approving the same, ana
/ as there are no facts stated in the bill
| of intervention which show any duty
or obligation of the Central of Georgia
Railway Company in the disposition of
the fund paid over to the Southwestern
Railroad Company, the demurrer of the
| Central of Georgia Company should be
| sustained.
with the Central of Georgia Rail-
way Company out of the case, the con-
! troversy as set forth in the interview
ton seems to be wholly between the
Southwestern Railroad Company and
certain of its stockholders and their as
signors, who at best assert only such
demands against the said company as
are fully cognizable at law, and all
concerned are citizens of Georgia; and,
as the jurisdiction of this court can
only be invoked because ancillary to
4 the main case and such ancillary jur-
! isdiction is very doubtful, the motion
to dismiss the intervention should be
granted.
'In Difference to the learned counsel,
who have ably and deliberately argued
this case, both orally and by brief, 1
deem it proper to further say that
find the demands contained in said IN
PREVENTION stale and without equity, be-
cause,
First. The fund of $685. 1884 paid
| over to the Southwestern Railroad
| Company under the compromise plan
by order of court in the main case was
made up of net earnings of the South
western Railroad Company after the
| lease of 1869 was abrogated, so far as
| the reeeivership was concerned, and of
a sum paid by the Central of Georgia
Railway Company to procure renew
| ed lease, and, therefore, was not fund
| which any of the parties was required
to pay direct to the stockholders of the
| Southwestern Railroad Company under
the provisions of the lease of 1868, al
| though il may be that in equity the
| said sum when received by the South
| western was charged with the provis-
| ions contained in said lease and the
| stockholders may have been in equity
| entitled to have had the same appor-
toned as to time and distributed in
full.
Second. Because of the fund paid
| over to the Southwestern Railroad
| Company under the compromise and
| order aforesaid the sum of S403 066. 81
was the net earnings during the re-
Ownership after the abrogation of the
lease of 1869, and was in no sense le-
| gally or equitably earned or paid over
as rental under the lease of 1863: and
if the balance, to wit: the sum of $780,
| 1907 paid in by the purchasers of the
| Georgia Central Railroad and Banking
| Companys properties to procure a re-
newal of the Southwestern lease is to
be considered in equity as the rental
of the Southwestern Railroad under
the lease of 1869, and as such due d.
rect to the stockholders, then the case
shows that this amount and more has
been distributed directly to the stock
holders of the Southwestern Railroad
| Company, interveners included.
Third. Because, in the main case
in which this Intervention is now filed,
the Southwestern Railroad Company
was a party intervening in behalf Of
and representing all its stockholders
and their interests without protest or
objection, and no fraud or even mis-
management therein is now alleged or
| even suggested. The substantial mat
ters complained of in this Intervention
relate to the dealings of the South
western Railroad Company with its
| stockholders subsequent to the last
| order made in the main case affecting
the Southwestern Railroad Company,
and its stockholders. and after the
main litigation was practically con-
cluded, and the case certainly so far
as the Southwestern Railroad was con-
cerned, was ended.
Fourth. Because this intervention,
presented more than five years after
! the Southwestern Railroad Company,
representing the interests of its stock
holders. passed out of the main case,
and long after the great bulk of the
stockholders of the Southwestern, in
| Guiding all these interveners but two
| (for Farrar and Solomons must be con-
sidered as standing in the shoes of
their assignors). have ratified the acts
and doings of the company. not only in
the main case in this court but after
wards in dealing with the fund coll
! lected by accepting dividends known
TO be based thereon. now comes too
late. as the demands therein made are
! stale.
AN order will be entered sustaining
the demurrer and granting the motions
| N dismiss the I'M arNanf ION -