Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-02-26
RECEIVER IS NAMED
FOR A.. D. & A. ROAD
BY FEDERAL COURT
Application Filed and Grant
ed in Federal Court-High
Expense and Low Income
Are Blamed for Condition

The Atlanta, Birmingham & At
lantfc railroad went into the hands
of a receiver Friday morning.
The bill for a receivership was filed
in the United States district court for
the northern district of Georgia by
Attorneys Arnold & Arnold, of At
lanta, for the Birmingham Trust &
Savings company. Brandon q
Hynds. counsel for the A, B. & A,
appeared and agreed to the receiver
shin. and Judge Samuel H. Sibley APP
pointed Colonel B. L. Bugg. president
of the A, B. & A. as receiver.
The order appointing Colonel Bugg
as receiver authorized him to take
= immediate charge as such of the con-
duct of the road.
Immediately after the filing of the
bill and the appointment of the re-
ceiver, Attorney Reuben Arnold gave
out a statement, declaring that the
receiyership was taken in order to
preserve the road for the public and
for the territory and the shippers
dependent upon it.
Colonel Bugg also gave out state
ment, declaring that the appoint
ment of a receiver is the logical re-
suit of the roads condition, due to
he present revenue and the rates of
wages hanging over from the war
period.
Second Receivership
The receivership of the A, B. &
4. comes as a sequel to the an
nouncement of the company January
| that wages would be reduced Feb
ruary 1, followed by a protest OF
employees that went before the Unit
d States railroad labor board, and
he refusal Of that board in the last
ew days to- assume jurisdiction over
he wage dispute.
This is the second time the A, B.
& A. has been in the hands of a re-
eeiver 1t went into a receivership
i'm 1909. and remained in the hands
of the receiver until 1916, a year in
which it made money, when it was
taken out of the hands of the re-
reiver. Federal control, with rising
costs and increased wages, followed
in 1917.
The bill for receiver filed Fri
day morning by the Birmingham
Trust & Savings company is a
lengthy document. Briefly. it sets
forth that the company holds a note
Of the road for 100000, due March
7, which it will be unable to pay;
that, while the roads gross receipts
are $4,000 per mile per. year, it is
losing 100000 per month; that the
road traverses a prosperous section
and is a valuable road, but that it
cannot continue to operate under its
present expenses; that the only sal
walton for the road is for the court
to take charge and, throughNa re-
ceiver, operate it and save it for the
benefit of the public and the ship
pers dependent upon it.
The same bill was also filed Friday.
1t is understood. in the middle and
northern district courts of the Unit
ed States for the state of Alabama.
Counsel for the company, in their
answer to the petition, admitted that
the road is operating at loss and
that, with the railroad commission
fixing rates and the railroad labor
board fixing wages, it is powerless
to act under the present circuu1-
stances; that the road is insolvent
and unable to meet expenses; and
that, in the interest of all parties con-
cerned, a receivership is desirable.
The roads answer consents to the
appointment of a receiver and joins
in the request Of the petitioner for .
receiver.
Court Order
In his order appointing Colonel
Bugg receiver, Judge Sibley directed
him to take immediate possession of
the road and all it's property, and to
continue the operation of the road
Systematically. Officers, directors,
agents ana employees of the road are
commanded by the order of the court
to obey all orders of the receiver,
and they are enjoined from interior
ing in any way with the receiver in
the discharge of his duties. Con-
tracts fixed by the road heretofore
are not binding on the receiver, ac-
cording to the courts order.
Killed Wounded