The Montgomery advertiser., 1905-05-26
GRAY CASE ARGUED
CONTEST OVER RECEIvERsHIP FOR
 SOUTH AND NORTH.
Array of Legal Talent Discuss Law In Railroad Litigation Before Judge Sayrc-To Bc Continued
 Todny.

Argument was begun yesterday in the injunction proceedings of Henry B. Gray of Birmingham. who seeks to pre- vent the absorption of the South and North Railway of Alabama by the E,ou- isville and Nashville Railroad Company, the former company.
 The legal battle which is being waged before Judge A D. Sayre. presiding over the City Court of Montgomery, Tn Equity, promises to be one of the most intricate and prolonged suits at law In the history Of Alabama railroads. From the arguments of the attorneys made yesterday before Judge Sayre, 1t can be readily seen that neither side is willing to yield an inch and before the case is settled it is the opinion of the attorneys that decision from the Su- preane Court of Alabama and probably
 of the United States will be handed
 Two months ago, 5ill was filed in
 Equity by Henry B Gray, a minority | Railroad Company. In this bill he al legged that the Louisville and Nashville
 Railroad Company was making an at stock for $27.50 per share of a par value | of S100. MT. Gray alleged that this price was ridiculously low and that | tion ofsth South and North had never been made. He further alleged that the | directors of the South and North al chancery % % Court our f' of Jefferson County for an accounting of the affairs of the com pany.- It was further ayerred that the | Board of Directors had called meet | ing of the stockholders and that at | that meeting the Louisville and Nash vile would seek to vote It's SD per cent | of the stock of the South and North toward the purchase of the road at $27.50 a share.
 He prayed, as a minority stockholder.
 our sss as ns County in as and ahe posed voting of the majority stock or
 the Louisville and Nashville be stopped. and that a receivef be appointed for tho South and North Company.
 | A temporary injunction was granted 1 to Mir. Gray by Judge Sayre; The Louisville and Nashville people immediately showed fighting spirit | by filing a petition that the cause be | removed to the United States Court,
 setting forth that the s Louisville sna,aa ana | Judge Sayre denied this petition,
 hoding that a SSth Ndrtb HeaFy nna parties to the litigation. are residents
 The Louisville and Nashville Railroad then took the matter before Judgs
 United States Court for the Middle Dis.
 trict of Alabama. Judge Jones declined been counsel for the Louisville and Nashville in a similar case.
 The matter was carried to the tnltea nI,i States Circuit Court of Appeals at New Orleans and this high court upheld the
 opinion of Judge Sayre.
 Shortly after these proceedings, Judah T. Moses and Lorenzo Semple, minority stockholders, became joint complain
 ants with MT. Gray.
 The arguments of yesterday were | heard in the Chancery Court room: A brilliant array of counsel faced Judge Sayre. On the side of the petitioners
 were Phares Coleman and S. H; Dent.
 Jr., of Montgomery. and John London of Birmingham, while the South and North Company was represented py
 Gregory |. smith of Mobile, John P Tillman of Birmingham and George w. Jones and Fred $. Ball of Montgom-
 The argument began on the petition that a marked injustice would be done the minority stockholders of the South and North if the Louisville and Nash
 road at price anything like s27.5o per
 On the other hand the defendant ar would mean a great loss to the road and pointed out the value of the South
 and North co the Louisville and Nash connecting link in the great system from Cincinnati to the Gulf.
 Affldavits from prominent capitalists l of Alabama were introduced, all say ing that khe appointment of a receiver
 would do great damage to the prop | erty. 1 .Xt was further argDfd that great
 sums of money ha& been expended in | the construction of the South and 1 North, and that the returns on the in- vestment had been small, and that l $z7.56 per share of stock was very | reasonable price.
 | The argument was wholly of a legal nature and was devoid of general in- | terest. It will probably continue | throughout today.
 | The court will meet at 10 o'clock this | mOrnfnR