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1 the MORNING NEWS. )
J EgIABLI*BI>IBSO-l!CORPOll*TKDl888. V
) J. H. KSTILL, President. J
CiIRALm FIGHT.
A BELIEF THAT THE LEASE WILL
BE BROKEN.
Capt. Raoul or Col. Phinizy to Taka
the Helm.
The Spayer Loan the Principal Finan
cial Rock in the Road’s Path to a
Renewal of Its Former Prosperity.
A Graphic Story of the Opening Pro -
oeetsings In the Court at Macon—ln
teresting Tabular Statements of the
Road's Assets and Liabilities.
Macon, G A., Maroh 24.—The prelimi
naries of the greatest legal battle on a rail
road question in the state were gone through
with to-day and the decks oleared for ac
tion to-morrow. Immense piles of legal
documents and statistics bearing on the
ease were filed, the most important of
which are analyzed for the Morning News.
To-morrow will be devoted to argument.
AU six of the attorneys are expected to
speak, Messrs. Rountree, Irwin and
Bacon for the complainants, and Messrs.
Lawton, Cunningham and Jackson for the
defendants. It is doubted if the argument
will be concluded to-morrow. The appoint
ment of a receiver is regarded as
a certainty here, and the only discussion is
upon the man. Capt, Raoul is favored by
Mr. Rountree and a large party of stock
holders, Including some of the directors.
Bon. Daniel Speer is being pushed by the
Atlanta party, and Col, C. H. Phinizy is
urged by many stockholders and directors.
It is thought to be between Capt. Raoul and
CoL Phinizy. The directors thermalves ac
knowledge the probability of tbe appoint
ment of a receiver, or, at least, the break
ing of tbe lease, and some of them say they
are not sorry for it. They are thoroughly
disgusted with the whole course of
tbe Richmond and Danville since taking
control of the Central, and the
only question with them now is how to get
loose from it in the best possible shape.
They acknowledge that they have been
badly disfigured by their contract with the
Danville. They would like to see the road
returned to tbe hands of the directors and
tbe Richmond and Danville held to a strict
accounting. They do not propose to be
bulldozed into payiDg any accounts not
legally due. A prominent lawyer who has
not yet taken e hand in the case said yester
day that as soon as it is seen that a per
manent receiver is going to be appointed
the fur will begin to fly. Every one
of the various interests represented at the
bearing will clamor for recognition, he said,
ana special protection will be requested tor
each one. The SSnever loan contract is
looked on as the principal rock in the road’s
future path now.
OPENING OF THE PROCEEDINGS.
The judges entered the court room
promptly at 10 o’clock, Judge Pardee pre
ceding. Judge Speer took his usual seat in
bis easy chair, and Judge Pardee sat in a
chair on his rignt. Marshal Corbett
epened tbe court in the usual form. The
court room was crowded when the judges
entered. Inside the bar sat a great array
of legal talout. Among the lawyers
were Capt. Harry Jackson, repre
senting tha Richmond and Danville and
Georgia Pacific; Marion Erwin and D. W.
Rountree, the complainants; Maj. A. O.
Bacon, the intervenor; Capt. H. C. Cun
ningham and A. R. Lawton, Jr., the
counsel for the Central; Judge William D.
Harden and C. N. West, representing a
large number of minority stockholders;
Judge A. Pratt Adams, representing South
western stockholders; Julien T. Davies and
Charles Beaman of New York, representing
the Mutual Life Insurance Company and
Speyer & Cos.; Maj. Joseph B. Cumming
an 1 Joseph Ganahi, the Central and Georgia
railroad counsel at Augusta: W. H. Brannen
and John Peabody of Columbus, division
counsel of the Central; Frank H. Miller,
representing Augusta and Savannah stock
holders; John W. Weed of New York, rep
resenting stockholders of that city; M.
Joline of the general counsel of the Central
Trust Company of New York; J. J. Spald
ing and Judge Henry B. Tompkins of At
lanta; A. Minis of Savannah, and members
of the Macon bar.
THE CENTRAL’S OFFICIALS.
President Alexander, Cashier T. M. Cun
tingham, Directors George J. Mills, E. P.
Joweli, U. B. Harrold and C. H. i'hinizy
occupied seats inside the railing, as did also
“tpt. Mcßee, Sunt. Dill, Judge Banks of
Columbus, president of the Mobile and
J ‘ r ard, and U. H. King of Savannah, clerk
of the United States court.
( There were about a dozen reporters pres*
~delegates from the employes at Savannah,
“Coon. Columbus and Augusta ware also
fresont at the hearing, but had no legal
representatives. They had conferred with
jUdj;o Speer and Judge Pardee and are
•stislied that their interests will be taken
ttre of. w
Judge Pardee announced that the court
*ould hear the case of Mrs. Rowena M.
(j &rk against the Central Railroad and
'taking Company of Georgia et. al. Judge
,r< spoke in a low tone of voice and
appeared to be suffering from a reoent attack
“I the grip.
ROUNTREE TAKES THE FLOOR,
' Rountree immediately arose and said
they were ready, but before opening
desired to know if any answer
l b 9 mai^e the Riohmond and Din-
J~ a Mr. Rountree named the papers
Wed in the bill, all the leases, contracts
rti a agreements between the Central
iroaj’ the Georgia Pacific, the
■ctuuund and Danville, and the Richmond
am i a ' ai!c * their leased lines interested,
'‘ also the charters of the Georgia Pacific,
tn ‘‘‘uhmond and Danville ond the Rich
t />* , rml nal asked for in the amendment
> the bill.
a M- Jackson announced that he ap
i9“ f° r the Richmond and Danville and
r i* 1 ' i’aoiflc, and stated that he was
wa *° ma * tß 11 showing. The Terminal
t „ a °t represented. Ho announced that
of :’f r " islred that were in possession
U " ~ ol)rK ie Pacino and Richmond and
>noi it w ‘' rB Present, but as to the Rich*
Mr |," r,ll * na i bo could make no answer.
liwiV™ un,rw Aikod tor a oupy of the oon
i w bioh the Richmoud and Danville
i i l6 " Central railroad.
*r-t ii i said there was no such con
bin,' 11 Provided iu the lease tbaf the
of an i an< * 1 ••nvlUa should take charge
‘ •na ujs.rnh, the Central.
JHofnina
Capt. Jackson said that be did not repre
sent the Terminal company. He also said
that the lease had never been authorized
and ratified by the stockholders of the
Georgia Pacific.
Lawton and ' Cunningham announced
ready.
mb, west’s cask.
C. N. West announced that he repre
sented 6.835 shares of stock and desired to
announce the strong opposition of his
clients to the appointment of a receiver.
Judge Pardee announced that Messrs.
West and Harden must join either with the
minority stockholders or with the Central.
Tbe intervention oould not be allowed
otherwise, there were only two tides to the
case. Judge Pardee said, and they oould not
allow of any one coming ip on the outside.
Mr. Rountree proceeded to read the origi
nal bill, of which a synopsis has already
been published in tbe Morning News.
Judge Pardee was peremptory in his rul
ings, and, it was seen, was disposed to cut off
all needless discussion.
The affidavits of Mrs. Clarke and her
counsel, J. L. Perry, and also a oupy of the
lease of the Central to the Georgia Paoiflc,
were attached to the bill by order of the
oourt after some discussion.
Mr. Rountree then road the amendment
adopting Maj. Bacon’s intervention as part
of the original bill, but disavowing any in
tention of joining him.
ROUNTREE SHUT OUT.
Mr. Rountree began to read through the
entire intervention of Maj. Bacon, but was
ohecked by Judge Pardee.
Maj. Bacon was allowed to state the dis
tinct points of his intervention for the pur
pose of saving time. They were that
the Central railroad, by the action of its
directors, is placed in a position where its
oharter is liable to be forfeited; that the
Rlohmond Terminal controls all the rail
roads mentioned in the bill, and
thereby defeats competition and establishes
a monopoly; that it has no power under the
comity of states to exercise powers forbid
den Georgia corporations by the constitu
tion, though its own charter may give it
the power to do so; that the Richmond and
Danville has no contract to dperate the
Central railroad; that the bond given as a
guarantee is worthless, and that the Rich
mond Terminal could not, even
as a Georgia corporation, hold
the 42,000 shares of stock of the
Central railroad; and it is requested that it
be enjoined from further perticipation in
the business of the company, aad the spe
cific prayer being that the court order this
42,000 shares to be brought into oourt to he
sold by order of the court, that they might
be held by legal shareholders.
Mr. Erwin submitted the intervention of
Frances and Rebecca Hesseltine of Boston.
Judge Pardee requested that all the
affidavits bo filed for tbe benefit of the
court.
Mr. Lawton stated to the court that he
understood that Maj. Bacon would repre
sent a much more formidable array of
stock at this hearing, and desired to know
if he did so.
Mr. Bacon stated that he had received
authority to represent L. A. Jordan of Co
lumbus, the owner of 125 shares of stock.
AFFIDAVITS SUBMITTED.
Affidavits were" submitted by Mr. Roun
tree as follows: Frank Hoyle, manaeer of
the Middleboro Belt railroad of Middle boro,
Ky., stated in his affidavit that from long
previous connection with the East Ten
nessee, Virginia and Georgia, he was familiar
with the conduct of its business, and 6tating
the points where it came into competition
with the Central railroad.
An affidavit was presented from Jaoob
Gazan and Jacob Cohen of Savannah testi
fying to a letter addressed by them to the
directors of the Central in Savannah urging
that the lease be broken and the answer de
clining to attempt to cancel the lease. Mr.
Coben is tbe owner of one share of stock.|
Mr. Rountree also read a letter of Maj.
Bacon to Gen. Alexander requesting a
copy of the contraot by which the
Richmond and Danville operated the Cen
tral roi.road and the answer of Gen. Alex
ander stating that he knew nothing of any
such contract.
Mr. Rountree also put in evidence the
plan of reorganization of the Terminal
Company prepared by the Oloott committee
and the tenth annual report of the Rich
mond Terminal Railway and Warehouse
Company to its stockholders. The last affi
davit was objected to by the opposition, but
was accepted by the court.
The forty-fourth annual report of the
Richmond and Danville was also filed as
evidence.
AN AFFIDAVIT FROM PAT CALHOUN.
The following affidavit from Pat Calhoun
was filed by Mr. Rountree: “Pat
Calhoun, Deing duly sworn, depqses
and says, that being informed by Mr. Er
win, counsel for the plaintiff in the above
stated case, that the testimony before the
committee of the general assembly of
Georgia in 18119, as set forth in the pamphlet
of the West Point Terminal Company,
printed by order of the general as
sembly by W. J. Campbell, the
state printer, has been exhibited to the af
fiant by Marion Erwin, Esq,, and that the
statement of the facts in the testimony of
affiant before said committee as set forth
in said pamphlet relative to the history of
the Georgia company, the Central Railroad
and Banking Company of Georgia, the
Richmond and Danville Railroad Company,
the Georgia Pacific Railroad Company, the
Richmond and West Point Railroad Com
pany.and their connection and relationship,
is true to tin best of bis knowledge and be
lief.” 9
An affidavit was filed from Charles T.
Bartlett, ohalrman of the joint oommittee
of the legislature, to Investigate the leases
of the Central railroad and the East Ten
nessee to tha Danville; thgt the printed evi
dence of Gen. Alexander In the committee’s
report was substantially correct.
The printed evidence of Gen. Alexander
and Mr. Calhoun before the legislative com
mittee on the Investigation of the leases
was filed.
The majority and minority report of the
committee was also filed.
AN ENGINEER'S CHARGES.
An affidavit of J. H. Cronk. a Central
railroad engineer, was read. He testified
that the rolling stock of the Central had
been run down since the road was assumed
obarge of by the Danville; that many of the
engines were in such condition as to be
actually dangerous; that the side-tracks
were in a dangerous condition, and that the
condition of the roadbed was greatly run
down since the Danville assumed charge.
There was also read an affidavit from J.
W. Urquhart, an engineer for six years on
the Central, who testified that the rolling
stock and roadbed bad been greatly
run down since ths Uiohmond and Danville
assumed charge.
An affidavit from C. & Marvin, ex-road
master of the main stem, was filed, testify
ing that the usual forces on the section
gangs bad been induced one-half in January
oud that the present foroe was not able to
maintain the road be iin proper condition,
which was deteriorating iu oonsequeuce of
the reductions.
J. B. Stevens, connected with the Central
railroad twenty-four years and a supervisor
of the roadbed thirteeu years, testified in
an affidavit tlmt the section forces of the
road wore i educed one-balf by the Rich
mond and Danville, and that the roadbed
went down by reason of it.
An affidavit was submitted from Thomas
Gibson, for six years an engineer on the
Central, to the saute effect as the other
engineers.
SAVANNAH, GA., FRIDAY MARCH 25, 1892.
DISCHARGE OF THE SHOP HANDS.
John Dempsey, foreman of tbe maohine
■hops at Macon, with tbe Central twenty
eight years, testified in his affidavit as to
the reduction of the forces by tbe Rich
mond and Danville in January; that slnoe
the reduction of the foroee the shops had
not been able to keep in condition the run
ning engines of the road.
Ur. Ringgold, the foreman of tbe paiut
shop at Macon, certified in bis affidavit as
to orders to changs the lettering of the oars
brought into the shop for repairs from
"Central” to "Danville.”
Mr. Anderson, a foreman of the Macon
shops, testified to the wholesale suspension
of forces in the shops. He said the letter
ing on'eleven engines bad been changed in
the Macon shops, the identification marks
being retained by order of the Richmond
and Danville. The instructions were not
countermanded by the Richmond aud Dan
ville until the filing of the bill.
E. E. Anderson, a trainmaster of the
main stem, testifiod that numbers of Rich
mond and Danville oars were ordered out of
toe division after the tiling of the bill to
North Carolina. A number of telegrams
to Mr. Anderson ordering cars to the north
were read. Three Central care were among
the number.
Affidavits of Rebeooa Hesseltine and
Frances Hesseltine as to non-collusion were
filed.
THE UNPAID ACCOUNTS.
Mr. Erwin d-sired the court to take
judicial knowledge of the fact that since the
filing of the bill the Richmond and Danville
had thrown the control of the Central upon
the court aud that there are bet ween $500,-
000 and $1,000,0u0 outstanding accounts
against the Richmond and Danville in this
state.
Judge Fardee said the court would take
notice of these facts.
THE GEORGIA PACIFIC’S ANSWER.
Capt. Jackson read the answer of the
Georgia Paoiflo railway to the bill. It
speaks for itself, and shows which way the
wind blhws. It admits that on Junel,
1891, au instrument in writing, purporting
to be a lease of the Georgia Central to the
Georgia Pacific, was signed by Joseph
Bryant, president of the Georgia
Paoiflc, but declares that neither
President Bryant nor the board of
directors of the Georgia Pacific were au
thorized to make the lease, and, further,
that the lease has never beau submitted to
tha stockholders for their appraval, sanotion
or ratification and consequently is not a
binding contract. It says that the Ueorgia
Pacific was leased to the Danville Dec. 10,
1888, and since that time has not been in
i peration of its own lines or any linos what
ever; that it has not been in posses
sion of any property of the Georgia Cen
tral nor assumed auy contract over the
same except that about June 1,1891, it re
quested the Danville cnmpauy to assume
the management of the Central, but knows
nothing further about it. The answer was
Bwcrn to by 510. Rutherford, first vice
president of the Georgia Paoiflc.
ANSWER OF THE DANVILLE.
Capt. Jackson then read the answer of
the Danville company. It was short, but
by no means proved sweet In.the mouths of
the Central directors. It is as follows:
"On or about the first day of June, 1891,
at the request the Georgia Pacifio company
this defendant assumed the manage
ment of the railway aud steamship lines of
the Central Railroad and Banking Com
pany, and has since managed and operated
the same until the appointment of E. P.
Alexander as receiver. When this de
fendant discovered that objection was made
by said railway aud steamship company it
immediately relinquished possession of all
the property aud linos of said compauy.
AU the other allegations, which are not ex
pressly admitted herein, the defendant does
not admit, and denies all unlawful
combinations and conspiracies; and this
defendant prays that the parties
plaintiff may be held to strict proof of the
allegations. This defendant holds a strict
and valid claim against the said company
for money far exceeding the sum of $81)0,-
000, which is now due and unpaid. This de
fendant now prays that in surrendering
possession of all the property of the Central
Railroad and Banking Compauy to E. P.
Alexander, receiver, first, that it may be
ratified aud affirmed to all in ents and pur
posed ; second, that it may have a decree
in its favor for the said sum of $800,000."
This is sworn to by the president of the
oompauy.
LAWTON & CUNNINGHAM’S ANSWER.
Mr. Lawton read the answer of the de
fendant, the Central Railroad and Banking
Company, filed at the hearing March 14, of
which a synopsis has already appeared
in the Moaning Newb.
Mr. Lawton followed this with the sup
plemental answer of the defendant to the
Intervention of Maj. Baoou made March 14.
Tbe supplemental answer is as follows:
Items 1,2, 3, 4 and 5 are mainly
denials of charges and a repetition of
allegations in tbe original answer.
The sixth item answers that the charges
of defacing, all the Central cars and chang
ing them to Danville has already been ex
plained by Gen. Alexander.
The seventh item admits that the revenue
derived from the operation of the Central
went into the treasury of the lessee com
pany and inquires where else the complain
ants expected them to go. It avers,
however, that oat of its treasury
the lessee company has paid
all sums due under the lease, in
cluding the fixed charges, rental money
and dividends, and believes that the
amounts so paid out are greater than the
profits received by it from the oneration of
'the property. The ninth item includes this:
“So far as the operation of the Central
railroad system by tbe Richmond aud Dan
ville is concerned, this defendant avers
that all it knows about the arrange
ment between the two companies is that
on tbe execution of the lease a
circular was issued by the president of tbe
Georgia Pacific announcing the lease, and
that the properties assumed thereunder
would be operated by the Richmond and
Danville for the account of tbe Georgia
Paoiflc, and this defendant having no ob
jection to this course has not thought it
necessary to inquire into the nature of the
contraot between these companies, it being
none of the defendant’s business.
BAD FAITH DENIED.
The tenth item denies all oharges of im
proper operation and bad faith in the carrv
ing out of the lease up to the time of t he
filing of the bill.
The sixteenth and seventeenth items up
hold the bond.
The twentieth item holds that a reduc
tion of forces was necessary on account of
decreased business.
Gen. Alexander’s affidavit is attached to
the bill os to the temper of Hfce facts stated.
Mr. l.awton followed this with the answer
of the directors, Gen. Alexander, Henry
R. Jackson, U. B. Harrold,C.'H. Phinizy,
George J. Mills, Joseph Hull, K. P. How.-11,
A. Vetaburgand J. K. Garnett, Gen. Sor
rel having never qualified as a director, de
nying that they have ever been guiitv of
fraud or illegal combination or bad faith
in their administration, but allege
that they have always administered their
trust in the best interest of all oonoorued.
Mr. Lawton then followed with a huge list
of affidavits from Chief Engineer William
Hunter, Hupt, Dill of the main stem, Super
visors Hall. Torrence, Kulgham, Jleyue,
Halknuau, IV heeler, Watson, Clark patriot,
Buttitigham, White, Hlrvh, Smith, Master
Mechanic AnU, Bupt. Epperson of the South
Carolina division, Roadmasters Mew and
Ford, and Bridge Foreman Palmer
of the South Carolina division.
These affidavits are all as
to the general ooodition of the track, road
bed, bridges and eugiues and ’rolling stock
of the system, to the effect that these
officials, having also been in the employ of
the Central oefore the lease, are fully ac
quainted with the condition of the road, or
the particular suctions of which they have
charge, and, that with a few mentioned
exceptions, are equally as good, and.
in some Instances, better, than under
the Central regime. Master Mechanic Antz
testified that the engines, cars and rolling
stook, generally, of the road after his super
vision, was in equally as good, if not batter
condition than under the Central control.
An affidavit to the effect was submitted by
Master Mechanic MoUee of Maoon.
THE CENTRAL’S SECURITIES.
An affidavit was submitted from T. M.
Cunningham, cashier of the Central Rail
road Bank, to tba effect that slnoe
the lease of the Central to the Georgia
Paoitlc it has not parted with any of
the stocks or bonds or securities of the
Central except the New England and Sa
vannah steamship stock, which is held bv
the Central Trust Company of New York
in escrow to await the determination of the
claims of the Richmond and Danville for
some SBOO,OOO, except such securities as are
placed for collateral for loans.
An affidavit was submitted from U. B.
Harrold of Americus to the effect that in
his business as a merchant he had found the
Central railroad and the East Tennessee to
be oompetlng companies, and au affidavit
from Col. Phinizy of Augusta, as president
of the Georgia Railroad and Banking Com
pany, that this road was also a competing
line of the Central.
An affidavit was submitted from C. N.
West in behalf of A. G. Guerard, George
J. Mills, Jacob Phinizy, A. G. Solomons,
tha Telfair hospital, John J. Cohen,
John J. Nevitt, the Bavanuah
Bank and Trust Company, and a large
number of other stockholders all over
the slate, holding altogether 0,835 shares of
stock, protesting against the appointment of
a receiver as injurious to the interests of the
system.
AN IMPORTANT AFFIDAVIT.
Mr. Erwin submitted an Important
affidavit to tbe effect that since the filing of
the bill under the order of the court to
examine certain papers in possession of the
reoeiver be made an inquiry of Gen.
Alexander, the temporary reoeiver, for the
Inventory, if any, of the property and
equipment and money in the hands of
agents which passed into the possession
of the Richmond and Danville under the
lease of the property of the Central Railroad
and Banking Company to the Georgia
Pacific, aud that Gen. Alexander exhibited
what purported to be a voluminous in
ventory of the property and equipment of
the road when it was turned ovor, whioh
appeared on us faoe not to have been made
by the omployes of the Central, but by the
employes of the Richmond and Danville
after that company went into possession;
that Gon. Alexander admitted that there was
a large amount of money la the hands of the
local agents of the Central of which the
Central had not taken au inventory and had
no acoount of for the reason that under the
lease the lessee took the road as a running
road.
A number of other affidavits not of special
importance was submitted by both sides.
TWO INTERESTING POINTS.
Judge Pardee mads two interesting
points during the reading of the affidavits
which are considered as good seed straws
in showing which way the wind blows.
When tbe deposit of the New England
Hteamsbip Company’s stook as seourlty
against the claim by the Danville for #840,-
(XX) was announced, he asked aoms very
sharp questions, and it was rather difficult
to explain the situation to him. He said
that it was very strange that the
Central should put up securities to
pay a debt it did not owe.
While Mr. Lawton was reading affidavits
and amendments on the part of the de
fendants Judge Pardee asked him if he in
tended to put in anything touching upon ibe
February pay rolls of the employes, and
when Mr. Lawton replied that he did not,
Judge Pordse intimated rather broadly that
it would be well for somebody to do some
thing of the kind. “It may beau impor
tant point in the oase,” ho said. “One of the
best signs of the deterioration of a
railroad I know of is the
non-payment of its employes.”
The point was noted by all present, and
Seat stress was laid upon it as intimating
e judge’s belief of the charges as to the
condition of the road.
AMOUNT OF THE PAY ROLLS.
Capt. Jackson stated that the February
pay rolls amounted to only #188,898, and
not $500,000. There was a recess of twenty
minutes taken at 1 o’clock for lunch. At
the conclusion of the reoess Maj. Bacon of
fered a piece of testimony, which he said he
had just come into possession of during
the recess. It was tbe report of
the Southern Railway and Steamship
Association, showing the movement
of cotton from various points to the ports,
by whioh he proposed to show that at the
competitive points where the Central rail
road has equal and even superior advan
tages the bulk of the cotton has gone over
other roads, carrying almost no cotton out
of Atlanta. Out of Montgomery the Cen
tral shipped only 1,009 bales, while the East
Tennessee, which has no line into Mont
gornery, shipped 59,000 bales from that
point.
THE BPEYER LOAN.
The Speyer loan was submitted by
Mr. Erwin as showing the need of a receiver.
Mr. Erwin called the attention of the court
to the fact that there were statements of
accounts on file overdue by the Richmond
and Danville from three to six mouths.
The minutes of tbe directors’ meeting
were read with regard to action upon the
bill for receiver, to show that the board was
fully decided as to what course it would pur
sue, and it would have been needless for a
stockholder to apply to them agaiuat tho
lease.
Mr. Erwin submitted an affidavit from
John \V. Hooks, an engineer, testifying as
to the bad condition of tbe engines and
inability of the shop forces to keep them in
condition. Mr. Lawton submitted an affi
davit of Master Mechanic McGee of the
Macon shops os to tbe numbor of eugiues in
the shop.
the argument begun.
The evidence was closed and the court
ordered the argument to begin at 1:30
o'elock. Mr. Rountree began his argument
by getting off a little pun on corporations
having no souls, but the Danville having
shown its soles and heels at the verv
first not" of the tempest. The facts ar.il
circumstances had shown that from begin
ning to end the cour.-e had been a course of
illegal and unwarranted proceeding-). He
charged that a plot was made from the be
ginning four years ago to wreck and despoil
the Ceutral railroa.l, and that it was
through Gen. Alexander’s efforts and In
strumentality that the attention of the
Danville was attracted to the Centra). "He
was the proouror that introduced
this fair and blushing maidun to
her dsspoiler," he said. Mr. R untree
showed the uasleemest of ap lying to tbe
board of directors for relief when they were
elected a id named by ths Danville and were
tbe ones who had made the lease ecniplained
of. It would not have done iu allow litem
to take charge of the litigation.
Mr. Rountree discussed tbe equity ques
tion involved at some length, and then oc
cupied some time in giving bis authorities.
Mr. Rountree spoke about half an hour.
He was stopped by Judge Pardee, who said
that the court would conolude for the day,
to meet at 10 o’clock to-morrow.
The questions Judge Pardee requested the
attorneys to devote their attention to were:
First, whether the Central railroad directors
had any right to lease their system without
the permission of its stockholders; and,
second, if it had the right, was It
within the policy of tue state, as out
lined by tbe constitution, to lease
it to a competing Una
ASBXTS OF THE CENTRAL.
Just before the adjournment of the oourt
Gen. Alexander tiled bis report as tempor
ary receiver of tne assets aud liabilities of
tbe Ceutral Railroad and Banking Com
pany. This, with the Introduction of tbe
Speyer loan contract, are regarded by the
lawyers as the most important paper* filed
to-day. A full synopsis of both is given
below. Gen. Alexander’s statement >4 as
sets, with which the readers of the Morn
ing News are partly familiar, it as follows:
Not
bonds. Amount. Pledged. Pledged
Port Royal and A. $ 1,178,000 $ 850,000$ £II,OOO
Port Royal and
W. 0 1,870,000 1,870,000
Central Con Mtg . 13,000.000 7,807,000 5,083,000
Sylvama 38,000 33,000
Talbotton 85,000 26,000
Savannah and W. 1,628,000 1,601,000 24,000
Mooile and Girard 335,000 835,000
Augusta, Gibson
and 8 139,800 129,300
Louisville and
Western 29,000 29,000
STOCKS.
Atlanta and West
Point 188,500 145,400 43,100
Agricultural and
M, Association... 1,000 1,000
Augusta and Knox
ville 18,210 18,210
Mobile and Girard. 818,105 818,103
Maoon Street 1,500 1,500
Ocean 8. S. C 0... 8,000,000 1,995,000 5,000
Pladinent Expos!
tioo 1,000 1,000
Port Royal and A 853,800 353,b00
Savannah Cotton
Exchange. ..... 200 200
Upson County 31,941 34,941
Western of Ala 1,500,000 1,500,000
Montgomery and
Eufaula 620,000 614,000 6,000
Wrightsville and
Tennille 70.000 70,000
J’ort Royal and W.
U, preferred 184,000 184,000
Port Royal and W.
C. Company 691,"T0 691,000
(Southwestern 144.000 1 'O,OOO 24,000
Savannah and W.. 3,000,760 3,000,760
Sav’h and Atlantic 250,000 .... 250,000
Chattauooga, U.
and C ...2,551,500 .... 2.551.500
New Eng. and Sa
vannah 8. 8. Cos. 500,000 .... 500.000
Hubokeu property 200,000 .... 200,(XX)
Atlanta Belt Line
land 148,204 .... 148,204
MATURING LIABILITIES.
The liabilities maturing withlu the pres
ent year are as follows:
Bills payable $4,520,090 00
Interest on same 261,300 00
Car trust notes 355,110 40
Rent of roods 720,325 50
Interest certerflcetes Indebtedness. 18 u ,000 00
Coupons 779,140 no
Hoboken property 40,600 (X)
Sinking found M. and E... . 15.000 00
Annuity city of Macon 5,000 00
Total ..$8,884,475 90
The amounts maturing by months are:
March $ 4,870 41
April 225,021 20
May 3(44,836 55
June 344.155 43
July 477,317 30
August,. 10,356 65
September 313.793 43
October 168,Ml 55
November 4,660,158 55
December 265,206 93
Total $6,834,475 90
Thp principal items in the liabilities be
coming due are as following, with the dates:
Rent Georgia railroad June 1 $ 150,000 00
Coupons collateral trust bonds.. . 122,009 00
Interest Speyer & Cos,. May 1. 11l .000 00
Note Central Trust Cos 120,000 00
With interest May S? 7 1,500 00
Kent Southwestern railroal June 30. 181,088 50
Coupons Central railroad 174,£05 00
Interest, certificates. indebtedness,
July 1 138,000 00
Coupons Savannah and Western
railroad, Sept, ! 153,175 00
Rent Georgia railroad, Oct. 1 150,000 00
Coupons, collateral, trust bonds.... 122,000 00
Notes Speyer &Cos 8,700,000 00
Interest 111,000 00
Notes Mutual Life Insurance Com
pany 700,000 00
With interest, Nov. 1 18,800 00
Kent Southwestern railroad, Dec. 30 181,688 50
THE BPEYER LOAN.
The Speyer loan oontract, which is submit
ted in evidence, is for the first time given to
tbe publio, and will be interesting reading
for business men and all concerned in Cen
tral railroad affairs.
It is dated New York, Nov. 11, 1891, and
etates that in the beginning that the railroad
company has over and above its bonded
debt, lease obligations and guarantees, an
indebtedness of about $4,199,195 jX) repre
sented by loans to it from corporations and
persons and secured by collateral to several
times that amount. A list of the
amounts and collateral is given. There are
thirty-six items in tbe list, of which two
are fpr $500,900 each, one for $290,000, two
for $259,000 each, three for X 2OO, OfX) each,
one for $147,151, ten for #IOO,OOO eaoh, one
for #96,200, two for $75,000 each, two for
$50,000 each and the remainder from $5,000
to $41,000 each. Of these there were matur
ing obligations to the amount of $704,-
243 88, divided into seventy-two
items. They appear to be chiefly
for rolling stock and material,
a number of tbe amounts being notes due
the Baldwin Locomotive Company, as is
seen from indices in penoii on the bill. The
oopy of tiie contract was secured from the
Central Railroad and Banking Company.
It. seems that the Central afterward decided
that it needed $4,400,000, as Speyer & Cos.
agree to furnish $3,700,000, and it is agreed
that $7(X),000 was arranged for otherwise.
THE AGREEMENT.
The agreement is as follows:
1. The syndicate agree to lend the $3,700,000
and a tree to deposit it with Speyer & Cos. In
New York,
2. The railroad company Is to repay on
November, 1892, in gold coin of the United
States the loan of $3,700,000 with inter
est in gold at the rate of 6 percent, payable
May 1 and Nov 1, and on the maturity of the
loan pay a commission to the syndidate of 2>4
per cent., also payable in gold.
8 The repayment of the loan and the pay
ment of interest and commissions thereon was
to be secured by the deposit with Speyor & Cos,,
of consolidated first mortgage gold bonds, ex
coupons of Oct 1, bearing interest at 5 per
cent., secured by the consolidated first mort
gage of the railroad compauy to the Central
Trust Company, dated April, 1890, tbe bonds to
be deposited at the rate of $2 for every dollar
of the loan, interest aud commission,
4. The syndicate is to have the right or option
of buying from the railroad company al! or any
part of the $8,000,000 of consolidated bonds do
posited at tbe price of 80 and accrued interest,
such right or option to be exercised in writing
irom time to time or on or before Bept. 11,1892,
the amount of all sales so made to be credited
as so much paid on acoount of the loan.
5 The syndicate is given the option at any
time on or before Kept. 11 to extend all or any
pari of tbe loan made hy it at 6 par cent, aud a
commission of live-sixths of ! percent for the
lienod of four months from Nov. I, 18(42. and la
case tbs toau I* extend'd in whole or in part the
option is given to the syndicate to buy the
b mds St 89 aud the Interest is also to be ex
tended four months to Jan. 11. :H’jJ, such ex
tended right end option to epply to sii of ssid
ft.Ow.OUO boude in cs-e the whole loan is ex
tended or In proportion as tba 1 can Is extended
6. The railroad company is also to pay H|wysr
A Cos. luOindusiiy aud for their poieousl ac
count a mmtnlssioa of 1)4 per eent. upon ell
boads that may tig 0 night under the optica
given.
FORM OF fHR NOT*.
The form of the note is luteresting. It
is at follows:
Nxw York, Not. —, 1891.
For value reoeired, the Central Railroad and
Banking Company of Georgia -■promises to pay
hpayer & Cos., managers aad agents, or
order - having deposited with them as
collateral security for the payment of this
obligation, the following securities, vix:
and in case of the default of tills com
pany in tbe payment of the interest hereon due
May 1. 1892, or of any of its obligations, this
obligation shall forthwith become due, with full
power aud authority to them or their assigns
In case of such default or of the non-payment
of this obligation at maturity, to sell, assign
and deliver the whole or any part of suoli secu
rities or any substitute therefor or addition#
thereto at auy broXer’s board or at public or
private sale at their option at any time or times
thereafter without advertisement or notice to
this company and with the right on their 1 art
to become purchasers thereof at such
sales freed and discharged of any
eyuity or redemption. And after deducting all
legal or other costs and expenses for collection,
sale and delivery to apply the residue of the
proceeds of suoh sale or sales so made to pay
this obligation, returning the overplus to the
undersigned and this company still remain lia
ble for any amount so unpaid.
The eighth section repeats the agreements
stated in the note. The ninth gives tbe
syndicate the preferential right to buy such
of the consolidated first mortgage bonds as
it shall wish to sell for the purpose of rais
ing money to redeem its so-called tripartite
bonds falling due Jan. 1, 1893.
NO NEW DEBTS.
The tenth section says the railroad com
pauy agrees that it will not, without the
consent of Speyer & Cos., iuour any floating
debt uor allow auy of the ootnpauies com
posing its system cither to incur a floating
debt or to Increase its bonded indebtedness
before Nov. 1, 1893, or until the loan made
shall be fully repaid, except that it may in
addition to the $3,700,000 aud the $700,000
already mentioned, increase its floating
debt to the amount of about $350,000 to
liquidate its other indebtedness if it is not
able to pay it off by the sale of securities or
otherwise.
Additional security was to be deposited
with Speyer it Cos. by the railroad ae fol
lows: Van Kirk Land Compauy notes,
SISO,(XX); Savanuah and Western first mort
gage consolidated bonds, $100,000: Central
Railroad aud Bauktiig Company consoli
dated first mortgage bonds, $193,000, Mo
bile and Girard first mortgage consolidated
bonds, $335,000; Port Royal and Western
Carolina first mortgage bonds, #410,000;
capital stock Savannah and Western,
til ,000,000. These securitise are also sub
ject to be sold for the payment of this loan.
Tbe oontract produced in oourt is the
duplicate of the original oontract held by
Hpeyer & Cos., and is eigne dby Gen. Alex
ander lor tbe Central Railroad and Bank
ing Company and by Hpeyor & Cos. for
themselves and their associates.
Tbe Morning News Is the only paper lu
the state to esoure a synopsis of the Hpeyer
loan to-day, and it took good work to get
it. It will be interesting reading to Havari
nah financiers.
PRUSSIA’3 CABINET.
Von Caprlvl Relieved of the Presi
dency of the Ministry.
Berlin, March 24. —The Kreuz Ze.itung
to-day says that the emperor has written
a gracious letter to Count von Zedlitz-
Truziohler, aoceptlng his resignation of the
office of Prussian minister of ecclesiastical
affairs, publio education aad medicinal
affairs.
The lit!ichsanzriatr, the official organ of
the government. Bays this evening that
Chauoellor von Caprlvl has been relieved of
the functions of the presidency of the Prus
sian ministry but ho will retain the position
of Prussian minister of foreign affairs.
Count vou Eulonberg, grano master of the
court, will succeed Gen. von Caprlvl as
president of the ministry.
Dr. E. Bosse has been appointed minister
of ecclesiastical affairs, public Instruction
and medicinal affairs to succeed Count von
Zedlitz-Truzlohler, who, while resigning
that office, retains his rank as Prussian
minister. •
MRS. MAYBRIOK'S OAHB.
An Effort Making for Her Release or
New Trial.
London, March 24.—The solicitors of
Mrs. Florenoe Maybrlck, who Is serving a
life sentence in Woking prison for poison
ing her hnsoand, James Maybrlck, a well
known Liverpool merchant, have sub
mitted a statement looking to her release
from prison, or at least to
the procurement of anew trial on
logal points, the joint consideration of
the counsel, comprising Sir Charles Russell
and Messrs. Polland, Moulton, Reginald
Smith and H. W. McDougall. The Ameri
can friuiids of Mrs. May brick will pay the
costs. Mrs. May brick is at present confined
to the prison hospital. She Is just recover
ing from au attack of Influenza.
Banquet to Minister Reid.
Paris, Maroh 24.—The farewell banquet
given by the American oolony to Reid, the
retiring United States minister, took place
this evening. Three hundred guests,including
the most prominent members of the Amer
ican colony and many famous Frenchmen,
assembled to hear Reid.
Small Holdings.
London, March 24.—1n the House of
Commons this evening the bill Introduced
by Mr. Chaplin, president of the board of
agriculture, to facilitate the acquisition of
small agricultural holdings, passed its
second reading witfiout division.
Germany at the Fair.
Berlin, March 24.—The oommittee of
the Roiohstag to wbioh was referred the
bill making an extra grant of 2,500,000
marks for a German exhibit at tbs Chicago
Columbian exhibition has unanimously ap
proved tbe credit asked for.
Emperor William’s Health.
Bf.rlin, March 24.—The emperor has
been much benefited by his visit to Huber
tusstock. It is reliably affirmed that he Is
only suffering from general fatigue. It Is
expeoted that he will be fully restored In a
few days.
South Dakota's Representatives.
Chamberlain, B. D., March 24.—Tbe
republican state convention was held here
yesterday for the purpose of nominating
delegates to tbe national convention at Min
neapolis. After considerable wrangling
tbe committee on resolutions were In
structed to bring in a report Indorsing the
administration and instructing tbe dele
gates to the national convention to vote for
Piesident Harrison. Senator Pettigrew
and ex-Henator Moody led an anti-Harri
son faction, but the general sentiment
proved too much for them.
Delegates to Chicago.
Washington, March 24.—Ths demo
cratic convention of the District of Columbia
to-day elected James L. Morris ami Henry
K. Davis delegates to the national demo
oratic convention at Chicago, with W, H,
Monugui; and J. Fred Kelly as alternates.
W liliaui Diokaru failed of election as a
delegate by four votes. Delegatee were
uaius trusted.
I DAILY.IIOA YEAR 1
< 5 CENTS A COPY. >
I WEEKLY,SI.2S A YEAR. I
TARIFF BILL PROSPECTS.
MORE) MBASURBS LIKELY TO B3
HBPORTED TO THS HOUSE.
They May Not dome Up for Debata
Even If Reported—Much Will Depend
on tbe Outlook for Them In the Sen
ate— Many Democrats Oppoeed to
Bringing More Bills Forward.
Washington, Maroh 24.— The question
whether to report more tariff bills, placing
additional articles ou the free list, will be ’
left in abeyance until near tbe conclusion
of tbe debate In the Haute. It is hoped
that when tha democratic members of th*
committee meet to oousider tbe subject
again, Mr. Springer will so far have reoova
•red shat the committee will have the ben
eflt of bis presence and opinion. Some of
the more conservative members on tb*
democratic side are opposed to reporting,
any more tariff bills during the present ses
sion. Their argument it that the derno
cratio majority in tha House will make its
devotion to tariff reform sufficiently plain
by passing the three bills now pending, and
that it will weaken tbe party in oertain sec
tions of the country to report additional
bills, without adding auy thing to tbe detn
onstration already given that the party h#
in favor of sweeping reductions.
MORE BILLS PROBABLE.
The majority of the demooratlo members,
of the committee, however, will
be found, when the question is put to tha
tost, In favor of reporting more bills. Car-,
cainly the three members who were on tha
ways and means committee in the last
democratic oongrees, Mr. MoMlllin of Ten*
nessee. Judge Turner of Georgia, and Ith I
Wilson of West Virginia, will favor further •
actiou. Mr. Bryan of Nebraska, who Uin
favor of long strides m advance, although
opposed to a general bill, will be found ou
tha same side, it will take one more of tba
nine democratic members to make a ma
jority aud probably Chairman Springer op
Mr. Whiting of Miohigan will contribute
ths necessary vote.
MAY NOT BE TAKEN UP IF REPORTED.
It is still a matter of speculation whether
more bills will be taken up aud passed it
they are reported. If a month or more is!
devoted to a tariff debate it may not b‘
thought necessary to have extended debate 1
over bills for free tin plate, free iron ore orj
lower duties on barley. Favorable reports
upon suoh bills will show tba!
attitude of the dominant party
as plainly os their aotuaL
passage by the House. The ouly reason for
taking them up and passing them will be a
hope that favorable action may be secured
in the Senate. The possibility of suoh
action can better be judged after the Seuatai
has considered tbe pending bills and a re
duction of the duty on tin plate to 1 cenk
per pound might havo a chance of passag*
and is likely to pass the House.
QUAY AFTER SPOILS.
He Is Willing to Trade Harrison tha
Pennsylvania Delegation.
Washington, March 24.—The PresldenS
nominated Ellery P. Ingham to be district
attorney iu Philadelphia in tho place of Mr.
Read (democrat), whose term expired las*
wosk, ami Alexander P. Colesberry to be
marshal in the place of Marshal Leeds,
turned out for violating his pledge not tot
got drunk, on which Postmaster General?
Wanamaker got him appointed. Messrs. Ing
ham and Colesberry were appointed to please
Senator Quay, on an iutimatlou from him,
conveyed by Secretary Elkius to Secretary
Foster, for he did not go to see the Presi
dent nor has he written him that tho ap
pointments would be agreeable. The Presi
dent disregarded the recommendatious of.
his Attorney General and of Postmaster.
General Wanamaker, who reoommondeti'
other men as better fitted for these places,,
but Secretaries Elkius and Foster, prac-1
tioal politicians and managers of ther
renominatlon canvass, carried tha
day as against Attorney Genera#
Miller and Postmaster General Waua-'
maker. Now that these satisfactory
appolutmeuts have been made Senator
Quay announces that he will call at tba
white house, for the first time in many
weeks, at the earliest opportunity and a
restoration of tho entente oordiale is iu sight.
Senator Quay is, however, one of tho-a
eminent republicans who believe that tha,
republican ticket is doomed to defeat uexfe
fall, and that it might as well have Presi*
dent Harrison’s name at tho head as not.
He is more interested In his own senatorial
campaign than in tbe presi
dency and for value received
in the shape of agreeable appointments and
effective restraint upon those officeholders
from Postmaster General Wanamaker
down, who seem to be interfering in the j
senatorial fight against him, would willingly
deliver the Pennsylvania delegation to
President Harrison with the pleasurable an- 1
tioipatlon of seeing him beaten at the polls,
JUDGE MAYNARD’S OASE.
The Matter to be Investigated by th
New York Legislature.
Albany, N. Y., March 24.—1n the Sen
ate to-day Benator O’Connor offered a long
preamble and resolution regarding the action
of the court of appeals iu the case of Judge
Maynard, in connection with the contested
senatorial cases, and authorizing the Senate
judiciary oommitte to investigate the matter
at once and report to the Senate as soon ax
practicable whether Judge Maynard has
done any act which requires bis removal
as judge of the oourt of appeals uuder sec
tion 17 of article 6, of the state constitu
tion.
Senator Cantor moved that the preamble
and resolution bs tabled, which was done by
a party vote of yeas 16, nays 13.
Mr. Cantor himself then offered a pre
amble and resolution regarding the matter.
Th 9 resolution is as follows,
Resolved, That tho subject matter contained
in the foregoing documents be referred to the
committee on the Judiciary; and be it further
Beiolved, If the Assembly concur. That the
Judiciary committee of the Senate and Assem
bly be. and they are hereby, authorized and di
rected to make an immediate Investigation of
the statements and allegations contained
therein, with power to send for persons aid
papers, aud report their conclusion* tnereon
with all convenient speed.
Mr. Cantor’s resolution and preamble was
adopted.
DIBB FROM HI3 INJURIES.
Jack Dorrab Fatally Struck on tha
Head by Some Unknown Person.
• Charleston, 8. C., March 24.— 0n
March 17 an unknown white man was
picked up in a dying condition on a public
road near Otranto, twenty miles from this
city. He bad been struck 00 the head by
some unknown person. He was brought to
tbe city and died yesterday. To-day hie
body was Identified as Jack Dorrah of
Savannah, The murderers escaped.
Italian Felona to be Returned.
New York, March 24.—Twenty ec-eott
victe from Italy were detained at Kilts
Island to-day. They admitted that tuey
ware liberated telone and will be promptly
