The Montgomery advertiser., 1905-02-26
E. E. WINTERS IS RECEIVER Traction Company Under
 Courts Direction. DEFAULTED ON BONDS Complaint Filed by North
 Am:rican Trust Co. General Manager of Street Railway VIII operate the Property with out Change of Manage ment or Policy.

By order of Judge Thomas G. Jones
 of the United States Court, Major E
 E. Winters was yesterday appointed
 receiver of the Montgomery Traction Company and beginning this morning the street railway will be operated by Major Winters under direction of the court until further orders.
 The appointment of a receiver was the result of an application filed in the United States Court by attorneys for the North American Trust Company of New York, which claims that the Trac- ton Company has defaulted in pay ment of interest on its bonds.
 Major Winters, who was General Man. tager of the Traction Company, made a $l5,000 bond and qualified yesterday as receiver of the property. He said there would be no, change in the policy or the management of the Street Railway. Trust Company's Complaint. The bill of complaint filed with the court shows that the North American Trust Company is a corporation under the laws of New York, and that the Montgomery Traction Company was organized under the laws of Alabama. It Is shown that on or about April l, 1903. the Traction Company made and delivered to the Trust Company a cer- Cain indenture of mortgage wherein 1t conveyed to the Trust Company ''cer- tain premises. property, rights and franchises" a complete description of che Montgomery property of the street railroad company being set out.
 The mortgage was filed April IS, 1903. in the office of the Probate Judge Af 5,.lx recorded.
 Your orator further shows" the bill continues, that the said mortgage was made, executed and delivered to secure d certain series of bonds known as the irst mortgage 5 per cent. gold bonds of the defendant Traction Company, numbered consecutively from 1 to 400, both numbers inclusive, each or the sum of 1000, amounting In the aggrcs gate to $400,000. and each bearing date of the said 1st of April. 1903, by the terms of which said bonds the said de-
 endant Traction Company promised to pay to the bearer, or. if registered, to the registered owner thereof, $1,000 in gold coin of theSUnited States of Amer lca, in the city of New York n the 1st'day of April. 1858, and to pay interest thereon Ut the rate of per
 ent. per annup1. payable semi-annu- lily in like gold coin on the first days If April and October in each year on presentation and surrender of the cou- Jons annexed to said bonds. That said ponds upon their face purported to be md were subject to all the terms and provisions of the said mortgage so ex- ecuted and delivered to your orator as trustee.
 Purpose of Bonds.
 lak in A,- was among other things provided that of the bonds authorized to be issued hereunder and secured thereby 800 bonds to wit: bonds numbered from to 300, both inclusive and amounting g in the aggregate to $300,000 of par value, should be mmedlately certified by your orator as trustee and deliver ed to the said defendant Traction Com pany and that the remainder of said bonds to wit: bonds numbered from 301 to 400, both inclusive, amounting in the aggregate to $100,o00 of par value. should be issued, certified and delivered for the purpose of extending the lines of the said defendant Traction Com pany or for the purchase of additional equipment, or both. upon the com pliance by the Traction company with certain provisions of said mortgage re- lating to the issuance and certification of said 100 bonds last mentioned.
 Your orator further shows that sub sequent to the execution and recording of said mortgage and or or about the 18th day of August, 1903, the said de- fendant Traction Company made, exc cuted and delivered unto your orator a certain indenture in the nature of a supplemental mortgage wherein 1t was provided that the stipulations and agreements in the original mort gage, with respect to the issuance and certification of the bonds hereunder should be so changed that $50 of said bonds to wit: bonds numbered from one to $50, both inclusive amounting in the aggregate to $350,000 in par value thereof. should be immediately cer- tln"d by your orator and delivered to said Traction Company, and that the remainder of said bonds, to wit: bonds 1 numbered from S51 to 400, both in elusive, amounting in the aggregate t0
 $50.0o0 of par value, should be issued certified and delivered for the purpose
 or extending the line of said defendant Traction Company or for the purpose or additional equipment or both; that the said supplemental mortgage was afterwards and on the 29nd day of Au- gust, 1903. recorded in the office of the Probate Judge of Montgomery County
 that all of the bonds issued or to be issued under or secured by said ] mortgage or oeed Of trust were stamp ed or endorsed as assenting to the ! notifications of said original mortgage contained in said supplemental mort gage"
 The bill of complaint further shows | that of tAc bonds authorized those number one to SIS amounting to $3lS.- 900 have been issued by the Traction Company and are now outstanding. Defauited on Interest.
 It Is shown that the agreement be-
 tween the Trust Company and the Traction Company was that in case de-
 fault should be made in payment of in-
 tereSt on the bonds for six months then
 the entire principal should be come i'm
 the Trust Company reserved the righ, and to seize the properties Of the Trac- tion Company.
 On April 1st, 1904, it is shown, there Nbecame due and payable $7,9o0 of in terest on the bonds and that on pre- sentation of the claim the Trust Com
 pany received no settlement. The Traction Company it is claimed also dH,aulted on interest due October 1st , 1904 in like sum.
 Wherefore the Trust Company con
 tends that the debt is outstanding and
 that it was agreed that the claim
 should fall due upon default. The court is therefore asked to appoint a receiver and to enjoin any one from interference with the receiver in the