The Montgomery advertiser., 1902-02-20

Judge Thomas G. Jones of the United States District Court in chambers, yes tcrday rendered decrees in the case oI Paul Romare and others against tne Broken Arrow Coal and Mining Company and others now pending in the Northern District. By decrees of Judge Jones no mare is continued as trustees of the prop erty but his application for receiver IS denied.
 Romare, as trustee, flied bill In the Federal Court at Birmingham. to fore close mortgage given by the Isroken Arrow Coal and Mining Conipanyt m lssS to secure a mortgage for $5o,OoO No in terest had been paid for nearly seventeen years but the bondholders and stockhold- CTS operated the property in various ways until recently one quarter Of the bond holders indemnified Romare and demand alleged that the Broken Arrow Coal and Mining Company was insolvent and that the mortgage security was insumcient ano that there had been lease of vaiuanie parts of the land to the Aiabama City Coal and Coke Company whtah -Kas im- pairing the mortgage securities by the lessees taking coal out of the mines. The trustee therefore applied for a receiver.
 The Broken Arrow Coal and Mining terest but defiied it's iffsolyency or that the security was being Impaired and in- sisted that the bondholders had waived the right to foreciose because they had aRTeS0 lI BuulCIcuL IuUncV WdS Pue SHto develop the property and place t on a paying basis that they would walt The company also set up that 1t had spent about 900 for that purpose and had put the mines on 2 paving basis and that force the company to buy their bonds above their value. --
 The minority bondholders on the con- trarv insisted that the majority bond holders were trying to force them to sell. Nurn eroffs aff7davfts were filed by both sides.
 Judge Jones decides that Romare had A right to foreclose hut is not entitled to receiver.
 After Romare filed his bill the majority stockholders under authority c: the deed of trust proceeded to remove Romare as trustee and substituted March and Holt. New York firm. in his place. This firm filed bill to be permitted to take charge of the litigation In place of Ro- mare and to enjoin him from attempting z to execute hts trust or to push his anpli- cation for receiver. Numerous amdn-
 Judge Jones decides thai Romare is en- titled to continue as trustee and refuses the injunction asked against him.
 J., J. Willett and Judge James F. Greene of Anniston. and Colonel B. F. Abbatt of Atlanta. March and Holt and the Brok- en Arrow Coal and Mining Company were represented by Knox, Bowie and Dixon of Anniston.
 There Is now due on the bonds and ir- terest o: the Broken Arrow Coal and Mining Company about $125.0 900 and incl dentallv the Birmineham and Atlantic Railroad and the Talladega Furnace which has contra cts for mining the com panv's coal are involved.
 John C. Soley is General Manager of the Broken Arrow Coal and Mining Compsny. He represents the interest of 74 out of 100 stockholders. a ma ajority of the bond holders being opposed to sale of the property at this time. The company con- trols over 3A00 acres of coal lands in St. Clair County.
 Paul Romare who Is continued as tris- tee of the property hv decree of Judge Jones, Is President of an Atlanta bank