The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1921-09-30
oKLAWAHA VALLEY
RAILROAD HEARING

PEE from all along the Oklawaha Val
ley route were present in the court
room, at least 70 or 100 persons among
those present being from out of town.
{ When Judge Bullock took his seat
and opened the case. Mr.. E. H. Martin,
attorney for Hood, the trustee, first
appeared and opened with formal
protest against having the hearing on
the grounds that the trustee and bond
holders had not been properly notified
O. the hearing. Mr.. Martin later
withdrew this part of his objection.
MIR. Martin further said that Mr.. Cum
mings, the receiver, had given bond
5 to guarantee payment of all expenses,
ilfcluding taxes, and that hearing to
+ ask for receivers certificates was un-
& necessary. He asked the court to or
der the receiver to pay the taxes even
8 ii 1t became necessary to call on the
: bond holders Mr.. Martin stated that
this same court had decided before
now, after going fully into the matter
and examining many witnesses, that
! the Oklawaha Valley was not able to
& pay its running expenses and that he
saw no use in issuing receivers certi-
1icates, which called for the road to be
I operated in order to pay them off,
when the road ran further in the hole
each year it existed. Mr. Martin
thought it would be better for all con-
/ eerned to let the state sell the road
for the taxes due and let the road be
4 discontinued, for the bond holders
wore getting less and less on their in
vestment the more debts were piled
up against the road before it finally
did cease operations.
Mr.. Hilburn, attorney for the re-
4 ceiver, stated that the receiver was
not held responsible for the taxes,
either by the order of the court or in
the bond, otherwise Mr.. Cummings
would have paid them as they fell due.
/ He disputed the claim that Mr. Hood
had not been properly notified. altho'
Mr.. Martin had Withdrawn that part
of his objection. Mr.. Hilburn argued
that the receiver wanted to keep the
i O. V. going because it is beginning to
i pay now and can be made to not only
! nay expenses but pay back the money
to its stock and bondholders.
Mr.. Martin refuted this statement
by showing in the reports of the spe-
cial master that the o. v. has not
been able to keep its rolling stock and
ruadbed in condition and that it has
lbeen run at loss of $4,000 for the
past few years. He said that the
court should let the state take over
the road for its taxes and not make il
run on at loss.
| Mr.. Calkins, for the railroad COM
mission, then took the floor and said
he was unable to tell from the argu-
rlents advanced by Messrs. Martin and
Hilburn just what they were driving
at. He said they seemed to be work.
ling for and against the continuing OF
tie reeeivership. while the question
for which the court had been called
was to decide whether the receiver
should issue certificates, which would
be a first lien on all the property Of
the o. v, and which certificates woulC
be sold in order to get money to pay
/; ! the taxes. Mr.. Calkins said that i
was the duty of the court to see thai
the taxes are paid. The taxes art
icertainly due and they should be paid
He said the issue of receivers certifi
Gates is the only way to pay them HI
, sttaed that then the receive
: could ask to be relieved of running tn,
, road if ne likes, or if it is not paying
| running expenses, but that the certifi
cstes would still be good in case tn
road ceases operations, as they woul,
be a first lien on all the roads prop
erty. Mr.. CalIIins was opposed to let
: ting the property of the road, whicl
he said he was unable to give goo
estimate on, but which will run wei
F over S50,000 and he thinks well u
/ irto $1,000 sell for $4,000 taxes
! He insisted that this would be to
3 large a loss on the bond holders.
s Mr. Hampton took issue with Nh
CaIkins on the point that the o. '
t could discontinue service after issu
a ing receivers certificates Mr.. Hamp
ton said the road would then be oblig
ed to run until these certificates ar
paid and then went on to show that tn
? net earnings of the road for the pas
three years and seven months wa
only 5000. With a yearly tax Q
: over $1,000 they cannot hope to eve
: get even and it would only be mat
ter of time until the security protect
ing the bond holders would be used u
Mr.. Merryday then spoke In behal
: Of receivers certificates He said ths
the taxes must be paid and that Gel
d tiacates are the only legal way to pa
e them.
. Mr.. HiIburn came back with th
statement that the o. v. could be ~
at nice profit and could iquidate ii
a receivers certificates If issued
4 This closed the arguments by Il