Newspaper Page Text
( THE MORSISQ NEWS, 1
} Establish zol 450. IxcoaroHATiDlSSS. '/■
J. H. EdTILL, President. (
RINDINGJJPTHE FIGHT
Arguments in the Lease Battle
in Progress.
.JUDGE PARDEE’S OPINION HARD TO
GUESS AT.
He 'Asks Questions and Makes State
ments Which Can Be Construed as a
Leaning Toward Turning the Road
Back to the Stockholders and Letting
Them Decide the Fate of the Lease.
Macon, Ga. , March 25.—The time of the
court was occupied to-day in hearing the
arguments of Mr. Rountree for the com
plainants and of Mr. Cunningham for the
defendant. Both speeches were lengthy, es
pecially Mr. CunniDgkam’s.
After the reading of the minutes this
morning Mr. Lawton requested permission
to introduce two affidavits, one from Gen.
Alexander in answer to the charge of Mr.
Erwin concerning the inventory or lack of
inventory of the Central property whoa it
•was turned over to the Danville,
and the order from the direc
tors as to the Danville claim.
Permission wa\ granted. Gen. Alexander
says in his affidavit that immediately after
the making of the lease of the Central to
the Georgia Paciffo he agreed with General
Manager Groen of the Danville that the in
ventory required by the company should
be made by officers of the lessa company,
who had been officials under bis manage
ment and in whom he had confidence. The
inventory was made and covered nearly 400
pages. The inventory is produced In court
as ovidenoe of the fact. Alter the inventory
was furnished it was seat to Gen. Alexander
for verification and acoepta ice. He found
it substantially correct, but bas not yet
accepted it, having been waiting for leisure
to examine it more fully than be bos yet
had opportunity to do.
THE MONEY TURNED OVER.
•‘I was asked by Mr. Erwin a few days
ago,” says Gen. Alexander, "if I had an
inventory of the amounts due by the agents
at the data of the lease, to which I replied
that no inventory of these amounts
was taken, as under the terms of the
lease all the accounts in the hands of
the agents beoame the proper:y of the com
pany and they were responsible to me for
them, but while no formal inventory was
taken the amounts in the hands of
the agents is shown on the agents’
ledgers, and all of those amounts were con
solidated on the balance sheets of the com
pany which were taken at the tune. I did
not understand him to ask for the balance
sheets or for these amounts, nil of which
can readily be given from the proper books
of the company. Asa whole the balance
sheet of the company and the inventory of
the property show that the lessee company
received with the property over SBOO,OOO in
money, supplies and g >od aoounts.”
Gen. Alexander says that in December, 1891,
he was informed by letters from New York
that the lessee compauy had a claim against
the Central for about SBOO,OOO. On going
to New York to investigate matters ho was
6bown a statement that thoy bad paid out
about that sum for the pay rolls, supplies,
freight and ticket exchanges and vouchers
of nil kinds due June 1, 1891. He called at
tention to article 10 of the lease, by which
the lessee compauy was bound to pay all of
these amounts, whatever they might be,
receiving, as they did, all the cash and
credits on bond and taking the proporty as
a running road.
THE JANUARY INTEREST HITCH.
‘‘The representatives of the lessee com
pany were unwilling to admit his inter
pretations of article 16 and stated that
they were unwilling to advance
the money necessary to pay
the December and January coupons, rentals
and dividends, amounting to about $750,-
000, unless he would give them securities
on which to raise the money. Ho refused
t > give them Central securities, but offered
at once to put certain securities iu escrow
until a proper interpretation of artioie 16
oithe lease could be arrived at by arbitra
tion, as provided in the lease. This propo
sition was Anally accepted, and 4,493 shares
of New England and Savannah Steamship
Company stock were placed in escrow to
await a settlement of the claims. He sent
a man to Atlanta and had a statement
made of all the items inoiuded in the olaim.
The statement covered about 100 pages.
He then went to New York with a com
mittee to meet a Danville committee to
adjust the claim. The Danville committee
claimed that they bad been unable to make
up their statement on account of the sick
ness of their auditor. However a meeting
cf the ocmmittees was held, at which he
submitted the lease and a statement he had
bad prepared. The Danville committee ad
mitted that under the terms of the lease the
claim of the lessee was unfounded and
agreed to report to the Danville board that
they had no claim against the securities in
escrow and to advise the board to release
them. When the Danville board met tbe
text day, however, a resolution was passed
authorizing the release of tbe securities
°nly on condition that the Central would
Cm over to them $900,000 of Mo
bile p.nd t+irard bouds to secure
tern for advances of about $120,000
chimed to have been made by them for |ha
sttension of the Mobile and Girard. He
ladled that the Central bank bad a claim
j* an equal amount of cash advanced to
l “* ! u and refused to give them any Mobile
•ad Girard bonds. Since that time be had
kale persistent efforts to secure the release
01 the securities but without success.
THE MATTER HAS NOT BEEN PRESSED.
“Ihe reason why I have not pressed the
“atter to a final conclusion,” says Geo.
marauder, “is that I have been daily and
•'e*-kly expecting an entire change in the
Management of the Richmond and Danville
company, and the introduction of new neo
ir>Y W k f,se Prid® would not have any effect
J? determination of a question of their
But to hold these securities and who would
“ Jt be complicated with the differ
of opinion and jealousies
inch have existed in the board of
, 9 Danville company. This next manage
•_mt came into office last Friday, and I
,e been actively engaged in telegraphic
, P ( *l> , 'tidfnce with them. It is only last
Jj.t that I received information which
unts to a refusal to take uuy immedt
" action upon the subject.”
•' kudavit of the directors.
h “®ffldavit o f the directors is short. It
p, “fie by Directors ;Alexander, Howell,
illr,!. y Harr old, who, it is stated, were
rii, * n Gecamber, 1891, when the
<J ‘ the Danville compauy for SBOO,OOO
ad lu , * “ n< l Central securities demanded,
**re present in Macon. The affi
arr u ‘tuat the board consented to an
4 •* <l| ueiit l which was made, by which
Ht,„. , . re * New England ami Havunuah
tp "‘“ttlp Company stock was placed
“•row with the Central Trust Company
t Horning f
of New York. This was done for these
reasons, the directors say: The rentals,
dividends and coupons which were due in
December and January, as stated in the
affidavit of Gen. Alexander, were indebted
ness of tbe Central Railroad and Banking
Company, and default on them would, in
tbe opinion of the directors, not only have
brought distress upon a great many people
who were dependent upon the moneys due
them, but would also have seriously affected
the credit of tbe company. The directors
were so strongly satisfied of the invalidity
of the claim, and that when properly
brought to the attention of the Danville
company its invalidity would be recognized,
that they did not ccnsider that they
were risking their securities and
were perfectly willing to plaoe them iu
escrow to save tbe default and the disastrous
cousequeucea which might have followed it.
The affidavit further states that the board
of directors constantly and persistently re
fused to turn over any securities of the
Central to the Danville company to be used
by tbe latter to raise funds, believing that
it was better even that tbe oompauy should
default for a while on its obligations than
to permit this to be done.
ROUNTREE RESUMES HIS ARGUMENT.
Mr. Rountree resumed bis argument at
10:20 o’clock. He discussed the validity of
the lease. He said it was invalid for three
reasons:
1. It was ultra vires.
2. It was void, because contrary to publio
policy.
& It was void, because oontrary to the
constitution.
Mr. Rountree proceeded to discuss these
points. He said that there was nothing in
the charter of the Central railroad allowing
it to lease itself. The failure to provide for
this powor in the charter constitutes an ex
clusion of the right. He contended that
neither the Georgia Paciflo nor the Central
had the power under their separate charters
to lease or be leased to one another. It was
void, he said, because it created a monopoly
and contravened tbe constitution. He said
the competition between the lines of the
Terminal system was like that between
clerks in a store who competed together to
see who oould make the largest sales for
their employe. It was not the kind of com
petition that increased or afforded better
facilities. The lease was void,
he said, because it was em
bodied in it that tbe lease of the Central
cannot be assigned by the Georgia Pacific
to any other corporation without the per
mission of the Central directors, and yet
it had been assigned to tbe Danville without
the permission of the Central directors.
Neither the Central nor the Georgia Pacific
has any contract with the Danville to oper
ate the Central. Mr. Rountree condemned
the negligence and ignorance of the Cen
tral’s directors in the making and the carry
ing out of this lease, especially in allowing
the road to be taken possession of by the
Danville without any spectflo contract to
that effect. Mr. Rountree cited a number
of authorities bearing upon the points
stated.
A CASE THAT COVERS IT.
Judge Pardee suggested that the whole
ground was covered iu Reports United
States Supreme Court, 139. Mr. Rountree
secured this and read copious extracts bear
ing upon tbe points he had named. Mr.
Rountree relied greatly upon the case of
Laugdon vs. Byany, and Spelling on Corpo
rations was also referred to. Mr. Rountree
asserted iu hie argument that tbe leasewas
made by the president and directors and
indorsed by the directors of the Richmond
and Danville.
“I wish tho gentleman to understand that
1 am not, and never have been, an attorney
for tbe Richmond and Danville," sharply
remarked Mr. Cunningham.
Mr. Rbuntreo replied that as the Central
was controlled by the Richmond and Dan
ville he did not see the difference. In an
swer to a statement of Mr. Rountree’s as to
the lease being improvident, Judge
Pardee remarked that improvidence
had nothing to do with it. Judge
Pardee said: ‘‘lf we should hold
the lease not ultra vires and void
but voidable the stockholders would have
the option of ratifying it.” Judge Pardee’s
statements and questions are given through
out as showing the tendency of the court in
the case.
Mr. Rountree tben argued upon the dis
position of the property if the lease be de
clared void. He argued that if tho road
should be returned to the directors who had
made the lease, who were upholding and
who were elected and controlled by the
Danville compauy, that they would con
tinue to operate it for the benefit of that
company. He said they ware Sot a legal
board, us they were elected by the 42.0U0
shares held by the Central Trust Company.
He held that the mismanagement of the
directors in the past should prevent them
from being put in possession.
JUDGE PARDEE’S LEANING SHOWN.
Again Judge Pardee disagreed with Mr.
Rountree’s statement that it was necessary
for a receiver to be appointed until a meeting
of tbe direotors to adjust the account*. “ Tbe
Central Railroad and Banking Company is
managed by a majority nnd not by a
minority of its stockholders,” he said. He
said it would furnish the courts plenty of
business to manage all the mismanaged
property in the country. An aocouuting of
two railroad corporations wai an unman
ageable thing. He said he did not see how
a majority c juld be debarred iu favor of a
minority. Judge Pardee said be understood
that the board of directors was elected by
12,000 shares of stock in addition to tho
42,000 shares held by that company.
Mr. Rountree ooncluded his argument
about 11:30 o'clock.
The subject of the next speaker was dis
cussed. Capt. Jackson said be did not think
It necessary to say anything iu behalf of
either the Georgia Pacific or the Richmond
and Danville. This threw the whole defense
on Messrs. Lawton and Cunningham.
A FINE ARGUMENT.
Mr. Cunningham followed Mr. Rountree
and spoke about two hours aud a half. His
speech was a magnificent argument, cover
ing every point with a complete list of
authorities. It was a speech that only could
have been made by one experienced in rail
road law and litigation and familiar with
the affairs of the Central railroad. Mr.
Cunningham began by saying that the
oounsal for the complainants had
put behind bis back the 94 equity
rule, but, like Banquo’s ghost, "it
would not down.” The 94 equity rule, ho
said, was a rule limiting the jurisdiction of
United States courts, promulgated by the
United Stntes supreme court. By this rule
it was necessary for the complainants to
make application for relief to the board of
directors in control of the road before tak
ing aotion against it in court. This the
complainants had not done .He argued
this point at length.
THE RULE NOT APPLICABLE.
Judge Pardee told Mr. Cunningham that
the rule was laid to prevent collusive suits
being forced upon tho United States
court, and he did not thiuk
it applied to the case against the Central
Railroad und Hanking Company. It would
have been perfectly useleat, said Judge Par
dee, to have called upon tho Central direct
ors to at'ack the lease. Had the appeal
been made l>y Capt. Jackson, representing
the Terminal, it would have been a strong
point
Mr. Cunningham made a strong argument
agaiust the charge in the bill that the Cen
tral directors were merely instruments la
the bauds of the Richmond and Dauville,
and showed thatiu the only instance meu-
SAVANNAH, GA., SATURDAY MARCH 26, 1892.
tioned in support of the charge the
deposit of eecuritiee with the
Central Trust Compauy of New York
was itself the strongest evidence
that the directors were laboring for the in
terest of the stockholder*, as it was dona
for no other pnrpoee than to prevent a de
fault upon the Central’s obligations. The
Central Trust Compauy was nn impartial
stakeholder, he said, holding the securities
until the question of indebtedness could be
settled.
Judge Speer inquired how this would be
determined. He said if it were true that
the Richmond and Danville controlled the
Central it would be plain that tbe settle
ment of the quest.on of the debt would be
iu Its hands.
Judge Pardee said tbe Danville,
not being a party to the
lease, the provision for arbitration
in the section of the lease applied only to
the Georgia Pacific and not to the Dan
ville.
RIGHT OF THE CENTRAL TO LEASE.
Mr. Cunningham then took up what he
said was the main point of tbe litigation,
whether or not the Central had power to
make the lease. The oomiug in of the Rich
mond aud Danville and saying that it threw
the lease back on the Central did not avail
them or affect the lease. He read from the
oharteroftbe Central Railroad aud Bank
ing Company provisions as to acquiring and
disposing of property. Judge Pardee re
quested him to expattato on this, and ac
cordingly Mr. Cunningham read almost
the whole charter and also the act creating
the Macon and Western and the charter
granted it, which road was afterward ab
sorbed by the Central, showing that the
fullest power of leasing and purchasing
connecting lines had been granted both
roads. Mr. Cunningham was interrupted
for a recess of twenty minutes, after which
lie resumed his argument, oontinuing until
2:SO o’clock. Mr. Cunningham took up
each obarge iu the bill of the 00/iiplaiuants
separately, showing its weakness or irrelev
ancy to the case. He spent some time on
the point that there was nothing in tbe publio
policy of the state or provisions of the consti
tution to prevent a connecting line from
leasing its connection with the
two thereby formed a continuous line.
There is no doubt that Mr. Cunningham
demonstrated this point completely. This
he held to be the position of the Central aud
Georgia Pacific.
THB GEORGIA PACIFIC.
Ha discussed the creation and oharter of
the Georgia Phcifio, showing it to be a
Georgia corporation and net an Alabama
corporation, as claimed by Capt. Jackson in
bis argument. He showed that under the
act of the legislature by which the Georgia
Pacific was constituted, the lease
was legal and valid and ratification by its
stockholders was unnecessary. He discussed
the publio policy of the state at length,
and held that any railroad iu .Georgia
could lease any connecting line
where the two line 9 would form one con
tinuous hue. He held that the contract be
tween the Georgia Pacific aud Richmond
aud Danville might be illegal, but this did
not show that there was any illegality in
the contract between the Georgia Pacific
and tbe Central. He argued that the Geor
gia Pacific and Riohmoud and Danville
were solvent corporations. Mr. Cunning
bain said tbe East Tennessee was uot con
trolled by tbe Terminal, that company own
ing less tnan 27 per cent, of its capital stock,
and its claim to coutrul it beiug only pre
tended for the purpose of appearing
stronger than it really was. That
the East Tennessee was a competitor
of both tbe Central railroad and the Dan
ville, be said, was amply brought out by
the fact that it was taking freight at com
petitive points from both roads oy giving
lower rates, and if that wa3 not competi -
tion, Mr. Cunningham said be did not know
what the word meant.
THE RECEIVERSHIP QUESTION.
Mr. Cunningham then addressed himself’
to tbe question If the lease is ultra vires and
illegal, 'should a receiver be appointed.
Even if the 42,000 shares of stook held by
the Central Trust Company were illegally
held it did not affect tbe legality of tho
election of the board of directors,
be said, as they wore elected
by 12,000 shares of stook outside of this
block. How can the Central railroad help
the illegal holding of this 42,000 shares?
said Mr. Cunningham. They havethe right
if they own 42,000 shares of stock tooontrol
the road absolutely so long as they keep
within the four corners of the charier
granted by the state. What matters It
whether the Central railroad stockholders
live in Kamsohatka, or New York, or Geor
gia, as far as tbe legality of their holding is
concerued?
Judge Speer Interrupted him here, asking
“Is it not a faot that the majority of the
officials of tbe Central owe their position
to tbe holders of those 42,000 shares; can
they not turn out every oue of them at the
next election, if it is true, as charged in Maj.
Bacon’s intervention, that it is tbe purp >se
of the Terminal oompauy to run down aud
depreoiate the value of the road, are not the
minority stockholders Interested?”
ENJOIN THE VOTING OF THE BLOCK.
"If that be true,” said Mr. Cunningham,
‘‘enjoin tne voting power of the stock, if it
be in tbe power of the court to do so.”
Mr. Cunningham defended the character
aud standing and the action of the Central
directors.
Judge Pardee said: “Your contention is
that if the lease is broken the road should
be returned to the direct >rs. Now, are not
the directors contending that the lease is
legal, and has not the Dauville company
tendered up the lease?”
"Why, your honor, they have vacated
our house,” said Mr. CunDingham. “The
house is empty and it is for us to go in and
oocupy it. We oan take hold of the road
and run it for the benefit of the Danville,
and at the end of six months oan compel
them to pay its fixed charges or proceed
against tbe bond.”
Mr. Cunningham discussed the question of
a reoeiver, * ‘a matter iu the discretion of the
court,” he said, “and one that should tie
exercised sparingly and with great caution."
“Do you think from what you know of
the case,” said Judge Speer, "there is any
likelihood of another dividend being paid?”
"I have no doubt of it, sir,” said Mr.
Cunningham.
"Have they not defaulted upon the wages
to their employes to a large amount!” said
Judge Pardee.
Mr. Cunningham contended that they had
not defaulted. He explained the manner of
paying the rolls. He said tho Danville had
paid $200,000 upon the coupons of tbe Sa
vannah and Western bonds two days before
the appointment of the receiver.
THE BPEYER LOAN.
The Speyer contract, he said, was a judi
cious attempt to fund the debt of the Cen
tral. It was necessary in the condition of
the company's finances at that time that
this debt should be arranged for a year.
They hypothecated $11,000,000 of the com
pany's securities for this loan. It was re
garded as an exceedingly valuable contract
by those who made It. It was made by
John C. Calhoun,who has since been turned
out of the Terminal.
"Hasn't he beeu turned out of the Cen
tral also?” said Judge Pardee.
"Yes,sir; be was not re-electad," said
Mr. Cunningbam.
"I don't think the Terminal had anything
to do with tbe Speyer loan, and doubt if
they desired it,”said Mr. Cunningham.
Mr. Cunningham concluded in a few final
remarks as to the condition of the Central.
The court then adjourned until lo o’clock
to-morrow. Mr. Cunningham's argument
was regarded by all who heard it as a
masterly effort, but at the same time the
judges are thought not to agree with him.
Mr. Erwin, Mr. Lawton and Maj. Bacon !
will speak to-morrow in the order named.
ANXIOUS TO CLOSE THE CASK.
It is understood that Judge Pardee will
issue an order to-morrow morning for the
argument to dose at 8 o’clock. It is be
lie ed that the judge* desire to finish their
consideration of the evidence and make their
decision to-morrow afternoon or night.
Judge Pardee is in ill heaph, and also has
engagements elsewhere. If the decision te
not made by to-morrow night it is expected
that the judges w ill take too notes and data
aud deliver the decision at their leisure.
There is ohly one opinion among those not
directly fntereeted in the case, and that is
that a receiver will be appointed.
There trill be a picnic to-morrow after
noon if the judges announce their decision
appointing a receiver. All the creditors and
parties interested are watching to file their
claims.
It is said on good authority that Judge
Henry H. Tompkins of Atlanta, who is here,
has an affidavit ready to the effect that the
Central Trust Company of New York holds
$52,000,000 of securities of the different
roads interested in the case, including
$13,000? 000 of Central securities,
besides tbe $4,200,000 of the
stock owned by tho Georgia compauv.
Tbe effect is lo show that the whole Ter
minal lay out is utterly insolvent and run
nlng on borrowed capital. A friend of
Judge Tompkins said, however, that the
amount of securitiee of tbe Terminal lines
held by the trust company is uot stated at
any such figure.
Messrs. Beaman & Davis, representing
Bpeyer St, Cos., are carefully watching tho
proceedings It is said they have already
prepared bills for foreclosure of mortgages
in behalf at Speyer Sc C >. and the Mutual
Life of New York, to be filed Immediately
should the Central bo declared insolvent. If
the Central is not declared insolvent they
cannot do tbis until the notes fall due
Nov. 1.
To-morrow’s results cannot fail to bo in
teresting.
The Morning News was the only paper
in the state to publish tho Bpeyer loan con
tract. The other papers were all hustling
for it to-day.
The following telegram was received from
W. J. Craig, division freight agont at Co
lumbus by .Supt. Curran yesterday:
I notice Maj. Bacon swears that wo have only
handled 1,000 bales of ootton from Montgomery
this season. Our shipments so far have beeu
11,800 bales and we have 1,700 hales under con
tract as against 1,400 bales shipped the entire
season last year by the Central railroad from
Montgomery.
There seems to be very little chance that
the road will be found Insolvent, and the
preparation of the papers by the Speyer
people was probably undertaken merely as
a precautionary measure in order to be able
to bo ready for any unlooked-for
developments that might turn up.
Financial men claim that with the largo
amount of soourities owned by the company
aud the easy state of the money markets In
the north there should be very little trouble
in rearranging and extending tbe Central’s
loans and securing any additional money
needed to tide it over tjw summer.
CHICAGO'S BOODLKRS,
One of the Grand Jury Caught With
Notes of the Testimony.
Chicago, March 25.— T0-day’s investiga
tion of the grand jury investigating the
boodlers broke up in disorder. The rock
upon whiob the jury split was tbe question
whether or not lo indict Secretary Soule of
the Joffersou Electrio road, who, when
wanted as a wituess, absented himself from
the city. A sharp discussion occurred be
tween the jurymen on the matter, ending
in little lees than a row. All tho proceed
ings were behind closed doors, but the
above was substantially what happened.
It was rumored, irt addition, that a
member of the jury was oaught with full
notes of the testimony of oue of tho wit
nesses, and that ho was accused of doing so
for improper purposes. Though muoh loud
talk was indulged in by the members of the
jury, no blows occurred. An adjournment
was taken because for the time being
no further progress under tho
circumstances was possible. Another
effort will he made to-morrow
to carry on the investigation. It has been
apparent for several days that all was not
harmony between tho state’s attorney on
one side as against conducting the prosecu
tion. To-day a long interview appeared in
which the state’s attorney foreshadowed an
intention od bis part to conduct the inquiry
according to his own ideas and not loroe
indictments, which in his view were
unwarranted. On the other hand, there
were strong intimations from those with
whom the state’s attorney differed that it
might be advisable to take up the course to
which he was kuown to be opposed, to place
tbe investigation iu tbe bands of a special
grand jury.
CANNIBALISM AT SEA.
Seven Sailors Reported to Bave
Eaten Three Shipmates.
New York, March 25.—The American
schooner Winnie Lawrie arrived here to
day from Hayti, after being out ISO days
and short of food sixty days. Three of her
crew are missieg, and it is intimated that
l hey were killed and eaten bv their sevon
shipmates in order that all might not die by
starvation.
[The Winnie Lawrie is reported by the
Maritime Hrgister to have sailed from St.
Marc about Jan. 8 and was further reported
at Tarpaulin Cove on March 12.—Ed."]
TOOK POISON IN HIS CELL.
A Wife Murderer in Ohio Prefers Sui
cide to Hanging.
Cincinnati, 0., March 25.—A Mount
Gilead. 0., dispatch says that when Ren
Gano was wanted in court this morning to
receive sentence of death for the murder of
bis wife the sheriff found him in the agony
of death in his cell, lie had poisone i him
self in pursuance of his assertion that ue
would never hang. He was convicted
Mroh 18 and yesterday a motion for a now
trial was overruled.
Purchases of Silver.
Washington, March 25.— The offers of
silver to the treasury department to-day
aggregated 939,000 ounces. The amount
purchased was 170,000 ounces at .88300?.8834
cents. The direotor of tne mint announced
that the government having purchased its
quota of silver required by law for the
present month, no further offer* will be
considered until Friday, April 1.
Paddook’s Food Bill.
Washington. March 25.—The House
committee cm agriculture to-day ordered a
favorable report on the Paddook pure food
bilL Monday the same comruittou will be
gin in secret session the consideration of the
anti-options bill.
Fiva Killed by a Boiler.
Cincinnati, 0., March 2.s.—The boiler in
Loppert ifc Co.'s saw-mill at Fidelity, Miami
county, unio, explo4sd ibis morning when
five men were iu the mill. Four of them
were killed outright a*i the fifth was fatally
injured.
BERING SKA WAR TALK.
THE HOUSE Or? COMMO NS SHOWS
A LITTLS ANXIETY.
The Liberate Expected to Oppose
Lord Salisbury'.! Rsfuial to Agree to
a Restoration of the Modus Vivendi.
No Warlike Orders Sent to the British
Squadron in the Pac flc.
London, March 25. —In the House of
Commons to-day Louis John Jennings,
progressive conservative member for Stook
port, asked the government whether tn view
of the gravity of the news from Washing
ton published during the last few days con
cerning the relations between the United
States and Great Britain over the Bering
sea quostion the government would Inform
the house as to the latest communications
on the subject.
James W. Lowther. parliamentary secre
tary of the foreign offioe, replied that com
munications had been passing between the
two governments during the last few weeks
regarding the arrangements for tbe ap
proaching sealing season. The negotiations
on this master were still pending. Mr.
Lowther added that he hoped the corre
spondence on the subject would bn
ready for production in the house
on Monday. The reply to Great Britain’s
last note to the United Stales, he said, was
still under consideration.
James A. Pickt.w, liberal member for
I-eicester, asked: "Has the government any
information as to whether the United
States Heuate has ratified the arbitration
convention?"
Mr. Lowther replied: “No, up to the
time I left tne foreign office to-day we had
nothing from Washington continuing the
telegrams published in this morniug’s pa
pers that thoQommittee oa foreign relations
of tbe United States Senate had recom
mended ratification of the convention.”
A PAPER CHANGES FRONT.
The Star, which yesterday held that Lord
Salisbury ought not to have knuokled
under to Secretary Blaine in the Bering sea
matter last year, declaring that the prime
minister was now right iu declining to as
sent to a prolongation of tbe modus viveodi.
has made a sudden ohange in its views, ana
to-day publishes an article strongly advis
ing Lord Salisbury to renew tne modus
vivendi. Yosterday the Star said that a
renewal of the arrangement would be an
injustice to the Canadians. To-day it says
that a renewal will cause the Canadians to
scream, adding, "but better that than a
serious quarrel botw.-en Great Britain and
the United States."
DISCUSSION OF THR SENATE.
Washington, March 25.— The Senate
to-day spent two and a half hours in the
further consideration of the Bering eea arbi
tration treaty. Asa result, tbe discussion
has nearly reached a conclusion, and a vote
is expected to be taken oil a motion to
ratify the treaty some time next week. In
fact, there did not seem to be any sufficient
reasm why tbe action should not have been
taken to-day, although it was repre
sented that tn view of the
small attendance of the senators toward
the close of the session, it would be better
to defer a vote until next week. The dis
cussion ha-: established a strong probability
that the treaty will be ratified. The sena
tors who opp .se it, as a whole, are very few
in number, and find their principal repre
sentative in Mr. Folton of California. His
opposition to the treaty is based upon the
idea that It contemplates a possible sur
render of absolute rights secured by the
United States from Russia But tbo most
formidable opposition to the ratification of
the treaty is made up of senators who be
llevo that it should be accomplished by a
resolution directing the President to with
hold an exchange of final ratifications until
Great Britain consent* to renew the modus
vivendi. It has been represented by mem
bers of tho foreign affaire committee
that the adoption of such a resolution
would defeat the treaty for Great Britain
would never consent to be placed in the at
titude of ratifying the modus vivendi,
through fear of the results of a failure to
renew.
RATIFICATION LOOKED FOR.
These representations bave had such an
effect thut to-day it was made to appear,
from the trend of thedobate, that tho treaty
will be ultimately ratifiod without auy such
consideration. However, there Is yet an
other element iu the Heuate which snides
to follow tbe ratification of the treaty
with a resolution indorsing the Presi
dent's action up to this point and assert
ing strongly the purpose of this government
to protect its property in tne seals at all
hazards pending arbitration. This elemsnt
appeared to-day to have gathered strength
aud it may be that whan final aotion is
taken upon the treaty some such a resolu
tion will be adopted, although a large
number of senators feel that it will be un
necessary lo do this as the President is
already fully satisfied that he lias the hearty
support and co-operation of the Senate.
Notwithstanding all of the discussion had
to-day the treaty rsmains technically un
changed in its provision and the advance
ment that is to be recorded is in an approaoh
made toward the conclusion of tho debate
and the efforts to maintain secrecy, and
there hns been talk in executive session of
another investigation into the newspaper
methods.
BLAINE WITH THE CABINET.
The seriousness of the Bering situation is
shown by the fact that Secretary Blaine
attended the cabinet meeting to-day, not
withstanding lie nas not yet fully recovered
from bis recent severe attack of the grip.
All the other members were prompt in at
tendance. Secretaries Foster and Tracy had
a conference prior to the meeting, pre
sumably in regard to the orders to be sent
to the naval and revenue vessels to he as
signed to the duty ot patrolling tbe sealing
grounds. It is practically settled that this
service will be assigned to the warships
Charleston, Baltimore. Boston, Yorktown,
Adams, Ranger and Mohican and the reve
nue vessels Corwin, Hear, Rush and Alba
tross.
ATTITUDE OF THE LIBERALS.
(Copyright, 1892, by the ,Y. Y. Associated Press .l
London, March 25. —Until the liberal
leaders have examined the Bering sea cor
respondence, which Mr. Lowther promises
to place iu the bauds of tbe members of
parliament on .Monday next, no party ac
tion will be taken on the question. But
from cable dispatches giving tbe drift
of the correspondence as laid be
fore the United Hiatus Senate they
have already determined to adopt an atti
tude of opposition. A week ago tbe liberal
leaders wore inclined to support Gird Salis
bury, and tbe liberal organs until yester
day took a view adverse to tbe position
assumed by the United Btares government.
Whether it be policy that diotate* this
ohange of front or anew sense of tbe
justice of tbe Amerioan claims, it
U certain that tbe leaders ot the
opposition have decided to attack Lord
Salisbury. The whole tenorof the opinions
expressed in tbe lobby of the House of Com
mons indicate* that the opposition means to
teizo the chance to arraign Lord Salisbury
as pursuing a needlessly vexatious course
instead of assenting to the reasonable
arrangement offered by tbo Washington
government.
SALISBURY BLAMED,
To-morrow's number of the Speaker, Mr.
Gladstone s organ, will conutu au "in
spired” article, which after analyzing the
expert evidence on seal killing, main thins
that the renewal of the modus viveodi
ought to be absented to by the British gov
ernment and continues: “Why should tbo
government be asked to promote the success
of 'Canadian adventurers who de
liberately undertake a dangerous
speculative enterprise of doubtful
legality and of doubtful utility to mankind?
At the outside tho capital and outfit of these
adventurers amount to £130,0u0. Their
succves might make the fur seal as extinct
as the “dodo” and if the existence of the
seal is at stake, how oan damages be
measured. We are not going to wnr with the
United States, not. even in the interest of
the federation of the empire, nnd pending
arbitration It it unjust to refuse to continue
an arrangement which was part of tho con
dition under which the arbitration was
agreed upon,"
The unionist organ, the Spectator, natw
ally takes the government side, but will
bave ouly a brief note, advocating a settle
ment that will open the sea to Canadian
sealers with a provision for rsO'im)wnis to
the Americans in the event of tho decision
of the ai bitrators being agaiust Great Brit
ain.
SALISBURY’S LAST REPLY.
Lord Sallibury’a reply to President Har
rison's last note ought to have been in the
possession of the Washington oabinet to
day. Although no official statement in re
gard to it* character is obtainable, the belief
of the Innor ministerialist clrole is that
Lord Salisbury will agree to plaoe an em
bargo on Canadian sealing in the open sea
provided the United States government
agrees to pay compensation if the arbitra
tion decision lie against American olaim*.
Whatever may be tho issue, the idea of an
armed collision is dismissed nn sll •ides here
as supremely improbable. To-night’s cable
dispatches giving a formidable list of the
United Htates cruisers and revenue vessels
preparing for Bering soa are received
with incredulous surprise. Within the
House of Commons interest In the matter
oenters solely In the question of how nmch
party advantage may bo derived from the
controversy. Neither sido has the remotest
sense of auy grave crisis imnemitng affect
ing peace. Outside of parliament popular
interest in the Beriug soa questioa is very
slight. 1
ENGLAND’S SQUADRON IN THE PAO IFIC.
Replies to Inquiries made at, tho admi
ralty do not support tho rumor that orders
have been sent to Admiral Hotham alter
ing tho movements of the Paciflo squadron.
On the contrary, tho officials know nothing
of any change in the progrummn sinco it
was fixed Jan. 27 and confirmed on March 8.
At the latter date the Warsprite, Melpomene
and Champion were under orders for Ks
quimslt; the Daphne was to rotnain ot Es
quimalt; the Garnet and Nymphe were to
remain on the southern division, and the
Phensaut, which loft Ksqulmalt on Jan. ‘2O
for Honolulu, was to remain in Hawiian
waters for the present. Admiral Hotham's
official directions sent to Aoapulco Jan. 16,
were to oruise off the ooast
of Central America and to join the flagship
on March 10 and proceed north. His orders
to the Melpomunn at Valparaiso, sent on
Feb. 27, were to sail for Esquimau. From
the date of these orders it i* evident that
tho movement of these vessels cannot be
associated with an acute state of the Bering
sea difficulty.
To-morrow’s number of the Army and
Navy Gazette will ourtly dismiss the matter
with the observation that it Is a fusi over a
political question nn 1 is mere bluster, and
that rumors of naval movements are only
gossip.
RUSSIA’S HEBREWS.
The Condition of Those Within the
Pale Becoming Worse Dally.
Bt. Petersburg, March 25.—The oondl
tiou of tbe Jews within the pale becomes
worse daily. The government doe* not
allow them under any ciroumstauces to
leave tbe bounds of tbe pale. They are un
able to obtain work, aud there is much
suffering among them. An enormous death
roil is only averted by the continuous
charity of the rich English Jews. The min
ister of the interior has direoted the gov
ernor of the pale to report as to the pros
poets of Jewish emigration in thespriug.
anew decree.
Berlin, March 25. —The Rre*lau Zeitung
to-day publishes the text of an imperial
deoree prohibiting the passage of Russian
Jews through Germany. The decree is very
rigorous and those Jews to whom the fron
tier committee guarantee support, and
those provided with money and tickets for
passage on ocean steamers, are
refused entry to Gorman territory equally
with those Jews who are entirely
destitute aud friendless. The police are in
structed, under penalty of severe punish
ment, to oarry out to the letter the instruc
tions contained in tbo decree, and under no
circumstances to permit any evasion of tho
law by any of the largo number of Jews
who are trying to enter Germany through
Galacsa.
thousands will suffer.
As it is impossible to make the decree
known throughout Russia, thousands of
Jews, ignorant of tbe prohibition which has
been issued against them, are oertain to ar
rive at the frontier here, and as they will
be halted and will not be permitted to pro
ceed further, it will be impossible to pro
vide accommodations for them. A few
cas-s have occurred already where Jews
endeavoring to get into the country despite
the warnings they received, have been Bhot
down while attempting to pass tbe frontier
guards.
400,000 rbadt to emigrate.
Tbe committee* which have been formed
for the purpose tif providing relief for those
unfortunate peopio, say that an enormous
number of Jews are seeking to escape from
Ruksiau tyranny aud persecution, aud are
ready to emigrate whenever an
opportunity offers. The committeos
after a careful study of the subject
estimate that 400,000 Jews are to leave Rus
sia. If they attempt to emigrate en masse
the German government will experience
much difficulty in preventing their egress,
and will be obliged to form a strong mili
tary cordon along the entire frontier.
WHOLESALERS IN SESSION.
Mooting of the Southwestern Associa
tion at Memphis.
Memphis, Tenk., March 25.— Tbe Booths
western Wholesale Association assembled
in convention this morning at tne Gayoso
hotel. Delegates were present from
Richmond, Norfolk, Lynchburg,
and Roanoke, Vo.; Nashville,
(Jliattanonga and Knoxville, Tenu.;
Savannah, Atlanta, Macon, Columbu* and
Home, Ga.; Birmingham, Kelma, Mont
gomery and Anniston, Ala.; New Orleans
and Shreveport, La.; Galveston and Dallas,
Tex.; Jacksonville, Fla.; Louisville, Bt.
Louis aud Little Rock. A number of im
portant matter* will be considered.
bight to Land a Cable.
Washington, March 25.—The House
commerce oommitteu to-day authorised the
subcommittee to draft a bill for report to
the House, giving to a French oompauy the
right to lad e cable in Booth Carolina and
near Norfolk, Vo., the cabie to run to Bau
Domingo.
I DAILY. 81(5 A YEAR, |
■f 5 CENTa A COPY. f
i WEEKLY, $1.25 A YEAR.
LOOKSBADFORTERMINAL
THE success OF THB new PLAN
DOUBTFUL.
The Pubtle Declines |to Indorse the
Programme—lts eponsore. However,
May Bo Booop'.ng in the Securities
at Low Prices—lnman and Thomas
Bald to Be Out of the Whole Busi
ness.
New York, March 25.—There is no sense
in trying to disguise the fact that the Ter
minal plan is thne far by no means
a "howling success” On the oon
trary, to tell the truth, it is to all ap
pearanoes a dead, flat failure. Tbis appear
anoo may be altogether to tho fixing of tbs
sponsors. In other words, they may be
ohuokling over the decided depreciation in
the va.ue of all the securities Involved iu the
plan because of the {chance thereby to eooop
them in at low price* for their individual
benefit. But the faot remains all the same
that the publio declines to in
dorse the programme, and if ill
is successfully carried through it will
bave to be don* by the inherent finan
cial strength of the people who have
fathered it.
OLCOTT DISGUSTED.
A rumor woe set in cumulation late last
evening to tbe effect that Mr. Olcott had
become disgusted and was determined to
resign as chairman of the committee and
wash bis hands of the whole business. A.
mild semi-official denial of this report was
put out early this morning, but the street
was fixed in the opiulon that something
was wrong ana declined to be reassured by
the denial. Accordingly all the Termi
nal Beouritles have shrunk severely
to-day, and it appears that the
insiders are left with the bag to hold. Ter
minal preferred stock is down 4 full points,
and the common stock and bouds have suf
fered relatively.
INMAN AND THOMAS OUT OF IT.
It has been whispered about to-day that
Gen. Thomas and John Inman had. after a
sympathetic conference, determined to turn
the back of their bands to tbe whole busi
ness. Tbis story flew through the streot
like smoko before a gale and found many
ready believers. Before the reorganizers
finish their work they will most likely rind
that the practical elimination of Ham
Thomas, John Inman and the Calhoun
brothers from tbe situation was an expensive
oxporiment. The whole matter to-night looks
to me fully as unpromising of luooaxu as it
did when the Norton committee was sum
marily disposed of.
INERTIA OF THB COMMITTEE.
The ine/tla of the oommittee In thu* far
failing to have ready the Central Trust
Company receipts for tho deposit of securi
ties Is proving a serious hindrance to nor
thing like sulistantial success of the plan.
Borne people are audacious enough to sug
gest that the First National Bank party has,
for the first time, "bitten off more than it
can chatv.” One thing worthy of note,
John Inman was in. Now he Is out and
every security of the Richmond Terminal
system is lower than the day he resigned.
M. J. V.
no pay in parliament.
A Motion In Favor cf Balaries Voted
Down.
London, Maroh 25.—1n the House of
Commons to-night Mr. Fenwick, member
for the Wansbeok division, Northumber
land, who is a working oollier, moved a
resolution in favor of the payment of mem
bers of the House of Commons in order to
enable representatives of the industrial
clause* to be elected. He submitted that)
£865 yearly would be a reasonable salary.
Mr. Balfour admitted that there was
much to be said In favor of tho resolution,
but be asked wbat tbe rate payers would
say. He would gladly see the labor party
In parliament increased, yet the working
classes now held the destiny of almost every
member of tbe house in their hands (and
they were not likely to allow their Interests
to be ignored. Tbe inevitable extension of
tbe principle to onunty officials aud other
publio bodies and public defrayment
of eleation expenses must bo faced. Tniw
would prove an enormous ami inequitable
burden because many electorates could
easily find gratis representatives. It would
further destroy the frsodem, independence
and dignity of party government whioh tbo
country had enjoyed for centuries, and for
the loss of which none of the proposed ad
vantages would compensate.
Hir George Trevylan (liberal) supported
the resolution. Experience, ne said, showed
that labor members were the most practical
men in parliament.
Tho resolution was rejected by a vote of
227 to 162.
A BANKER’S DOWNFALL.
Forged Paper Brought Out by tho
Palneaville Failure.
Cleveland, 0., March 2.5.—T0-day’s de
velopments In tho Fainesville Bank failure
are startling. Forged paper to tbe amount
of about $60,000 has come to fight, and R.
1C Paige, the bead of the baab, is missing.
Three forged notes have been placed on
various bank*. Beven thousand dollars left
at tbe bank a week ago by the
Falrport Dock Company to pny it*
men Is missing and the men havn
not received a cent. Paige left Painesvillw
Wednesday evening but nobody knows in
what direction he went, although it is be
lieved be ha* gone to New York. He did
not leave any one to represent him. F. J.
Jerome, the assignee, says the liabilities will
amount to over $600,000. Steps will be
taken to prevent Paige from leaving the
country.
INVESTIGATING A LYNCHING.
Eighteen Messenger Boys Summoned
Before the Grand Jury.
Memphis, Tknn., March 25.—The grand
jury, whioh for tbe post ton days bas beau
devoting considerable time and attention to
tbo reoent lynching of three uegroes lu this
city, resumed its investigation this morn
ing. It is reported that they bave secured a
strong clew, and eighteen messenger boys
were this morning summoned to appear be
fore tbo grand jury to tell wbat they are
supposed to know in regard to tbe affair.
Ohio’s Republican Convention.
Columbus, 0.. March 25.— Tbe republi
can state central committee to-night de
cided to bold the state convention at Cleve
land, 0., April 1L
Death in a Parliament.
Toronto, Ont., March 25.—H. T. Clark,
M. P., while addressing tbe legislative as
sembly this afternoon, sunk unconscious
into his seat and died four minutes later of
heart dlsesee.
Kaiser William Not 11L
Bani.iN, March 25.—Tbe Pott today au
thoritatively ueoleres that the reports of
'.lie emperor's indisposition are grueely ex
aggerated, that tie shoots aud rides daily.
