The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-07-21
WON BY SOUTHERN
No Cause for Receiver
for S. C. & G.
So Judge Prtchard Decided Yesterday
and Taxed The Complainant
With the Costs in The
Hacn


Especial 10 News and Observer
Asheville. n. G.. July 20.-United
States Circuit Judge Pritchard today
heard argument in the application for
the appointment of a receiver for the
South Carolina and Georgia Railway,
running from Charleston. S. c., to Au
gusta, Ga. After argument by coun
sci for both the Southern and the COM
plainant. Judge Pritchard discharged
the rule, citing the Southern to appear
and show cause why a receiver should
not be appointed; held, that there was
not cause for receiver and taxed the
complainant with the costs.
The request for the appointment Of
receiver FOR the South Carolina and
Georgia came on for hearing two
months ago on application of an Au
gusta. Georgia, stockholder of the
Southern, who complained that the
treasury of the Southern was being
depleted by reason of suit instituted
against the system by citizens of South
Carolina for an alleged violation by
the Southern of the merger law of
South Carolina and GeorgiaC1 shrdlu
South Carolina. 1t is claimed that the
Southern took over the South Carolina
and Georgia road, a competing line, III
violation of the law, and that citizens
of South Carolina now had suits pend
ing against the Southern to the amount
of S470.000.
The Georgia stockholder of the
Southern, claiming that the treasury
of that company was being depleted
appeared before Judge Pritchard and
asked that the Southern be enjoined
from further operating the road, that
a temporary receiver be appointed un-
til the matter could be heard. Judge
Frtchard declined TO issue the injunc-
tiOn or TO appoint a temporary re-
ceiVer, but did sign an order citing the
Southern to appear and show cause
why a permanent receiver should not
be appointed. The date for the hear
ing was set in June, but by consent
the time was extended until today.
The Southern's case was in the hands
of Col Thorn, the roads general coun-
sell and the entire morning was taken
up with argument. The Southern
contended that under the law a stock
holder seeking relief must first appeal
to the management of the road. and
was one of the points on which the
argument against the appointment of
q receiver bas based. The Southern's
counsel also claimed that the South
Carolina act of 1902 authorizing the
lease of the South Carolina and Geor-
gia to the Southern repealed the act
of 1897, known as the merger law and
allowing citizens to sue for penalties
for violation of the law.
Visitors to Asheyille today include
all the prominent officials of the
Southern Railway Company. In the
party are: Samuel Spencer president
of the Southern: Col. A. b. Andrews,
first vice-president; c. H. Askert.
fourth president; L. c. Powell, of
St. Louis. fifth vice. president; H. Z.
Spencer, son of President Spencer.
general manager and Col. Alfred H.
Thorn, general counsel. The officials
were guests of the Battery Park Hotel
and their presence in the city was for
the purpose of attending the hearing
before Judge j. c. Pritchard in the
matter of the Southern showing cause
why a receiver should not be ap
pointed for the South Carolina and
Georgia branch of the Southern Rail-
way The party of officials left this
evening.