The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1916-07-18
OLD EMPLOYEES To
Be RETAINED BY
NEW OFFICIALS
General Counsel and Treasurer
Are Appointed for
Receivers.
BRIEF HISTORY OF THE CASE
People of Brunswick Regret
that Firm Was Forced BY FL
nancial Distress Into Receiv-
erohip--Road Expected to
Gain in the End.

The appointment of receivers for
the Georgia Coast & Piedmont Rail-
load Company at Macon Saturday by
Judge Emory Speer, of the United
States Court, was Of course the sub
jcct Of considerable comment in
Brunswick Sunday and yesterday. The
appointment of receivers was not
general surprise as it has been long
known that the financial affairs OF
the company were more or less tan
g'ed. In fact for many weeks 1t has
been an open secret that large pay
rolls and supply bills were unpaid and
that considerable money was due to
the various counties through which the
line traverse for state and county tax
CS.
Early in March last this litigation
was brought by David Lowenthal, a
New York bondholder, who employed
the firm Of G. Henry Il r. S. Cohen,
of Augusta, Ga, to bring proceeding
Tor receivership4 Early in April
Judge Max Isaac, Of this city, was as
sociated in the case by that well
known Augusta firm. The original
suit was filed in the District Court at
Savannah in April; was taken under
advisement by judge Emory Speer,
then presiding in that city, and was
adjourned over to Augusta. Later
the hearing was set for April 18th but
was passed, at the request of the rail
D, Dads attorney, and was finally argued
in Macon on May 3rd. Since that time
the case has been under advisement by
Judge Speer and finally was heard
again, on supplement matters brought
to he attention of the court by both
parties to the litigation terminating in
an order appointing receivers on July
18th
This is a BRIEF history Of the case
and it might be pointed out that the
fact that Judge Speer has named
Brunswick citizens as receives would
indicate that it is the intention OF the
court and its receivership to conserve
the property, having always the best
interest Of Brunswick and her institu-
tiOns.
The receivers assumed charge OF
the property Yesterday, that is TO say
under the direction Of the court. one OF
the receivers who had already quallhed
G. II. Leavy acting for the other, as
sumed control. Receiver +. ID. AIKEN
made the necessary bond during the
day. which was forwarded to Judge
Sheer for approval last night.
Receiver Jas Bradley, Jr,, who is alb
sent from the city, will each Bruins
wick about Wednesday or Thursday
and will Immediately qualify.
Orders were issued by the receivers
appointing Judge Max Isaac,
OF this city, as general counsel ana
MI. l.. Ludwig as treasurer Tor the
receivers. In the general order issued
Yesterday all officers, agents and en-
ployees Of the railrcdG company were
retained in the employ OF the recelv-
ers.
While the people Of Brunswick OF
course will regret that financial DIM
culties have overtaken the company
il is believed that an active co-opera'
ton on the part Of tle receivers VIII
serve to rehabilitate the property as
speedily as possible, and it might De
stated that this step seems to be one
of the necessary avenues through
which all small railroad lines have to
travel in order to reach the proper
stage of development