The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-05-26
is AN INTERESTING CASE

| Announces staff Officers OF Ala.
bama Division for Reunion
In Louisville.
Montgomery, May -(Special.) -Gath
cred In the little court room of thu
chancellor of the division, in the cour
house of the county, are some OF The
most renowned legal minds of the state
to argue a case that involves one oil
the most valuable properties of the
south. 1t is expressed as Henry B. Gray
ct ais. vs. the South and North Ala
hama railroad, and seeks to force the
Louisville and Nashville railroad, oper-
ators of the said South and North and
owners of 80 per cent of its stock, to
give an account of its stewardship for
thirty years; also to prevent the sale
of the minority interests of the South
and North to the Louisville and Nash
Vile at a price less than the minority
stockholders think is reasonable and right.
When Judge A. d. eyre of the Mont
gomery city court, before whom the argu-
ment is being made, came in this morn
ing he found the litgants, represented
by attorneys, already in their places.
They were lined up as follows:
For the plaintiff, Henry L. Gray, ct ais,
Plares Coleman and S. l.. Dent OF Mont
gomery. and John London of Birming-
ham.
For the South and North, Fred s. Ball
of Montgomery.
For the Louisville anu Nashville, Greg
ory L. Smith of Mobile John p Tillman
of Birmingham and George W. Jones of
Montgomery.
The Points Involved.
1t was stated to the court at the OPEN
ing that the desire of the plaintiff was
to argue the two points involved in the
application for a receiver for the South
and North, and the application for in
Junction to prevent to carrying out of
the prayer OF the directors of the South
and North made in the chancery court
of Birmingham. 1t was desired that there
should be an accounting of the Louis
vile and Nashville to the stockholders of
the operations of the South and North;
also to combat the alleged determination
of the said Louisville and Nashville to
acquire the stock of the South and
North, above the so per cent already
owned, at $3.50 a share 1t is argued first
that there is no right in the road to take
over the stock if the holders do not care
to sell 1t: and that ii ley did care to
sell the of $3.50 a share set upon it, is not
adequate.
Side of Defense.
The defense argued that they were en-
tirely within their rights and that they
were not trying to do any injustice to
the minority holder of stock. The his
tory of the ownership of the South and
North property was gone into and the
amount of money and time spent in its
development, along with a discussion of
the contracts by which the stock was ac-
quired. 1t was argued and alleged in adj
dition by affidavits, that the appointment
of receiver for the South and North
which Is one of the most valuable links
in the chain of the great through line
of the Louisville and Nashville would
have a disastrous effect on the whole
business of the state, and that every in
terest would suffer. There we're affida-
Wits from a large number of the leading
Industrial men of the Birmingham district
to this effect. the list including some of
the most prominent captns of industry in
the south. 1t was stated a the opening
in response to a question by the court
that the argument did not go to the point
of the motion to dismiss for want of
equity
Interesting Story.
Inc case is very interesting. III was
nled several weeks ago by Henry b.
Gray, representing the holders OF about
ten per cent OIL the STOCK OF the South
and North. lie alleged that the holders
OF the majority OF the stock mad no right
to take that of the minority If 1t did not
want TO sell, and engaged with MIN
number of others. At meeting of the
stockholders OF the South ana North held
mere IN March Mr. Gray appeared and
contested the SALE on the ground stated
and that 1t was set at a price too low,
and made an oner TO puy ana pay cash
the ninety per cent OF the STOCK held by
an Injunction secured to prevent the
sale of the stock at the meeting in dues-
ton. the whole business was postponed
until some time in June, pending a de-
cision by the courts on the points being
argued today. Mr. Grays offer was put
on the minutes. however and will be
considered. the supposition is when there
Is a release In the law that will permit
business being done.
-, r-.
LOOKS Like fi9nt'
There Is well defined idea that the
case is to be fought into and through all
the courts. that impression having been
given by a man connected with the side
of the defense indirectly. Several cases