The Montgomery advertiser., 1905-06-14
RECEIVER IS DENIED
DEGREE BY JUDGE sAYRE IN RAIL-
 ROAD CASE.
Henry B. Gray VIII Appeal to the Supreme Court--Begfnnfng of Interesting Litigation
 Other Courts.

m the county divlSion ,or tne City Court of Montgomery yesterday Judge D Sayre rendered a decree denying the application of Henry B. Gray of Birmingham and other minority stock holders of the South and North Ala bama Railroad Company for the ap- pointment of a receiver for that com pany, and at the same time overruled the motion of the South and North company to dissolve the injunction here tofore ordered restraining the further prosecution of a suit in the Chancery Court of Jefferson County.
 The litigation will go from the equity court to the Supreme Court. The decree of Judge Sayre Is really but the preliminary steps in a suit that promi- ses to be of long standing between the minority stockholders of the South and North company led by Mir. Gray on the one side and the majority stock holders of the company, mainly the Louisville and Nashville Railroad Com pany on the other.
 The board of directors~of the South and North Company. 1t was alleged. were preparing to sell certain stock to tSe Louisville and Nashville Company below It's real value when the minority stockholders secured an order from the courts restraining the board from doing so The board of directors filed a bill in the Chancery Court of Jefferson County asking for an accounting from the Louisville and Nashville Company of its operation of the South and North property for thirty years under lease. The Louisville and Nashville made an accounting, but while the matter was pending in the Birmingham court MT. Gray and others secured an injunction restricting the South and North from further prosecuting the suit alleging that it was mere subterfuge on the part of the board of directors of the South and North who, 1t was further alleged, was acting merely as agents of the Louisville and Nashville Company.
 Pending the litigation MT. Gray and his associates filed an application for receiver for the South and North Com pany setting out that the property was not being managed In the interest Of all of the stockholders.
 It was on these two matters that Judge Sayre yesterday rendered de- cree. He was busy with the civil division of his court and did not write an opinion. Judge Sayre had notified the interested lawyers that he would render his decree In the matter, which was argued before him some time ago, at 12 o'clock yesterday At that hour John F. Tillman and w. l. Grubb, of Birmingham, and George W. Jones, of Montgomery. representing the Louisville and Nashville Railroad Com pany; John London, of Birmingham and s. H. Dent. Jr., of Montgomery, representing the complainants who joined Mir. Gray after the first bill was filed, and Phares Coleman, of Montgom- cry, representing MT. Gray, assembled in the equity court room. Deputy Register Cliff Parks had the decree, which he said Judge Sayre had re- auested that MT. Coleman read to the interested lawyers.
 The decree was then read by MT. Coleman. It was as follows:
 Henry B. Gray vs. South and North
 Alabama Railroad Company ct al 'In the City Court of Montgomery, in
 February Term, 1905.
 "This cause, coming on to be heard At this term. was sumbitted for decree on the motion of the defendant, the South and North Alabama Railroad Company against the Louisville and Nashville Railroad Company in the Chancery Court of Jefferson County for an accounting; and on the motion of the complainant for the appointment of a receiver in this cause, and the several affldavits which have been noted by the register. And upon con- sideration the court Is of opinion that the said injunction ought not 10 De ols- solved and that there Is no necessity for the appointment of a receiver at this time.
 ''It is therefore ordered. adjudged and decreed by the court that the motion to dissolve the injunction heretofore ordered in this cause in the respect pointed out of the motion, and the mo- tion for a receiver be and the same are hereby separated and severally over ruled.
 "Done this 18th day of June. 1905.
 "A. D. Sayre. Judge of the City Court of Montsom-
 cry"
 After reading the decree MT. Cole man, representing Mir. Gray, an nounced to the assembled lawyers that an appeal would be taken, to the Su- preme Court from that portion of the decree denying the necessity for the appointment of a receiver for the South and North Company. Under the law the appeal must be filed with the Supreme Court within thirty days from the date of the decree.
 One of the lawyers interested in the litigation said that the decree of Judge Sayre did not go into the equity of the case and that it had merely be- gun; that 1t might be in the courts | some time.