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t THE MORNING NEWS. i
. EsTABLISHI. 1350.IsoOarOR*TKDlS89. >
) J. H. EBTILL, President. \
SIVMJJN TOP.
He Central Turned Over to
the Directoi-s.
H. M. Comer Elected Presi
dent of the Road.
The 42,000 Shares Held by the Central
Trust Company Be joined From Vot
ing—The Directors Acting as Re
ceivers Appointed by the Court.
An Election for a New Board
Ordered Held on May 16—Treasurer
Cromwell of the Mutual Life In
surance Company a New Director.
The February Pay 801 l Ordered Paid.
Macon, Ua„ March 28.—The great Cen
tral railroad case it practically concluded.
Mr. Rouitree and his associates have tri
umphed so far as the purposes of the bill
are concerned. The 42,000 shares of
stock are enjoined from voting, thereby
releasing the Central from the oontrol of
the Terminal. The Georgia directors of the
Central are appointed temporary receivers
to manage the property until an eleotion
can be held for a legal board, thereby
maintaining confidence in the Central prop
erties, and assuring safe and conservative
action. The question of the validity
of the lease is not passed upon
and decision Is reserved. The effeot
of this is to place the Central under ths
shelter of the oourt and to allow it to pro
ceed against the Rlohmond and Danville for
a striot accounting and to hold them to the
bond for any damages that may have re
sulted to the Central from its action in
throwing up the lease or otherwise deny
ing its control. The decision is perfectly
satisfactory to every one exoept, perhaps,
the Terminal people, who catch it in the
neok. Of all the interests represented all
express themselves as satisfied with the de
cision and there is nothing but praise for
the wisdom and discretion shown by tbe
the court.
OPENING OP THE COURT.
A detailed account of the proceedings in
court this morning is given. The court
room was jammed when the judges entered
and Marshal Corbett opened court. All the
attorneys were present, and t asides the four
directors, Messrs. Alexander, Phinizy,
Howell and Harrold, who have attended
tbe case throughout. All of the directors
who have qualified since the tast election
were present, es follows: President Alex
ander, Directors H. R. Jackson, A. Vots
burg, Joseph B. Hull. J. K. Garnett,
George J. Mills, C. H. Pbiulty, E P. How
ell, U. B. Harrold and H. T. Inman of
Georgia and James Swann of New York.
Gen. Sorrel; and Mr. Maben of New York
have never qualified as directors. The pres
ence of tbe directors in a body Indicated
they had reason tc suspect the result would
be reached to-day. On opening court Judge
Speer announced the report of the tempo
rary receiver, Gen. Alexander, as follows:
„ Macon, Ga., March 28.
To the Hon. Judges of the United S ates Court:
As directed by the court on March 26, 1 re
spectfully submit that the cash in my hands as
temporary receiver on Saturday night was
about 8165,000, this, after paying about 828,000
insurance premiums previously authorized.
The daily receipts at present seem to average
about $15,000. Tile unpaid pay rolls of the
former lessee are reported to me to bo about
*IIO,OOO. Very respectfully,
K P. Alexander;
Temporary Receiver.
Judge Speer said that upon oonaiaeration
they had decided to order tbe temporary
reoeiver to pay the February pay rolls, and
a decree would be prepared to this effect,
layment of the pay rolls will begin as soon
a they oan be prepared.
CENTRAL. AMENDS ITS PLEADINGS.
A. R. Lawton, Jr., counsel for the Cen
tral, then offered the following amendment
to the Central’s pleadings:
And now comes the Central Railroad and
Banking Company of Georgia and show to tbe
court that its president and board ot directors,
consisting, with a few exceptions of tbe same
nien who now fill those offices, entered into the
contract of the lease with the Georgia Pacific
ralroad, after long deliberation and negotiation
m good faith under the advice of counsel.
1 flat the same was a legal and valid transao ion,
and believing firmly that It was decidedly to and
m the interests of all the stockholders of this
company, the miuority as well as the majority.
That it has continued in good faith to assert
the legality and validity of said contract of the
and now believes that if the lime could
he carried out by the parties concerned that it
would be to the best interests cf the stock
holders and of the public. That since the com
mencement of these cases both bv
answers among the records of this
court and by private notification, the Georgia
‘acme Railroad Company has asserted the In
validity of the lease and announced uncon
ditionally its surrender of the same, not only to
the receiver, but to the defendant, and its in
™J™l to abandon the same permanently, and
the Richmond and Danville Railroad Company,
Me operating agent of the Georgia Pacino
KAilroad Company, has announced its perma
nent abandonment of the same also. And this
defendant submits itseif to the jurisdiction of
me court, as to the c urge it shall pursue in
rwerenee to the said contract of the lease and
Pmya its direction and instruction in the
demises. Lawton .£ Cunningham,
solicitors of the Central Railroad and Bauking
Company of Georgia.
Sworn to by E. P. Alexander.
mb. lawton’s argument.
T Mr. Lawton then began bis argument.
Die argument lasts 1 two hours nod a quar
ter and was voted by 'all who heard it to
a splendid effort. Mr. Lawton endeavored
mav jid ag ( ar as possible the ground that
been already covered and to lay special
■fiess upon tbe features which bad devel
sinoe the opening of the case. The
Prominent features of the speech, inoluding
he opening and oloee, were about as fol
omitting of course the legal points
Sn J authorities:
of n our honors plea**, a considerable amount
thii mB lIM 11 *n consumed in the agreement of
but ‘“foresting ami most important cause,
sa* L?° not believe, sirs, that any moro time
' n c °nsum dby any one that its magui
justifies. Ido not believe that any cause
morn important nature, and which is
, t l l u ( !ht with more possible results for good or
“Was many people, has ever come before
T. ur t sitting within the state of Georgia.
U, '■ * lr ". is my excuse to going for luut ex
ts ‘ lnto the argument of ibis case, afier
VBr J r fell argument which was
L on Friday last by my
1 expect to touch upon tho legal
LmL Iuu * wl *ieb are involved la It, but not to
" ,b ® oourt with authorities which have
rnv “‘'heady presented, but rather to qpnllue
answer tbe points which have been
c rt "y Die learned counsel who addressed the
p.,' , n Kaiurday morning, and 1 therefore
L . , a U P their natural sequence, fully
oil iT '' tllß that Uie court Is again** me
prop, eitmn that these ooiuphunant*
an. JJ wedding in cant. I only desirs to call
ut .? Ul tba portion which we have takeu
hr .. subject, and which we still
lao “' ** • correct one. and that is that ths
not •* f * nasty fourth squit jr rule dose
J f, 'er to tic** cases lb Which ths cor
"** Mosid hissrt the right, but refers spe
The morning News.
ciflcally in it* language to rights which may
properly be asserted by the corporation Itself.
Now, if your honors please. If the allegations in
tnls bill are true and the legal complainants are
correct, tnere is not a single right in that
bill which may not properly be asserted by
the Central Ra ima 1 and Banking Company of
Georgia if it should see proper to do so.
RIGHTS OP TBS CENTRAL.
Argument was made on Saturday morning
with reference to the right of the Central rail
road to own stock in other corporations. If
your honors please, l represent In this court
only the Central railroad of Georgia and the
individual directors who have been made de
fendants to this bill. Ido not oonstder it any
port of my duty to fight the battles of the
Richmond Terminal, or the Danville or the
Georgia Pacific Railway Company. 1 believe it
is something with which I have no concern, and
therefore with which I should not
take up the time of the oourt,
but I would call tbe attention of the court
to the fact that at the time the Collins case was
decided tho banking powers of the Central were
in abeyance. * * * * * •
“If your honors please, I find that in my zeal
for a client, who was among my first clients, I
have gone further than I had Intended to go.
I find that in my zeal for those who are
near and dear to me, and who are interested
pecuniarily and otherwise in this question, I
have consumed more time than was necessary,
but I come now to the question as
to whether or not this railroad should
be turned over and committed
to the bands of those who had It ibefore this
lease was made. A receiver was asked for on
the ground that these direotors who sit around
me In this court room are not corajtetent par
ties to take charge of that trust, in other words,
that they should not be trusted with the prop
erty concerned in this litigation—and numerous
and great it is—because they are charged with
misconduct. Where is the proof of the miscon
duct of these direotors 1 Now, that question is
very important to these gentlemen. They are
individual defendants to this bill and they are
brought here and charged with conspiracy.
Where is the proof of conspiracy?
THE COMPANY NOT INSOLVENT.
The complainants in this case do not charge
that this company Is Insolvent, and it Is because
they do not believe that she is Insolvent. They
have not said so and have not intimated it. be
cause they do not believe it. They are interested
in this stock, they are interested in tbe oredit of
this company, and the credit of a corporation
or of an individual Is so delicate a thing that it
is almost equal to a woman's virtue in the ease
with which It can be smirched. These charges
that have been made we know are bound to
damage us, but what we ask is that we be al
lowed to tako our property and relieve us from
this embarrassing situation as quickly as pos
sible. And we know we can do it it this court
will intrust it to us.
THE ATTACK ON ALEXANDER.
If your honors please, the gentleman who
stands at the bead of this defendant corpora
tion has been attacked and has been compared
to the vilest of creatures that walk this earth.
I do not believe that tbe assault which has been
made upon him is suared In by a single man n
this court room, except tbe man that made it,
and 1 do not believe that in his cooler moments
he would repeat it. He stands here
before this court as the subject of
this attack and of other attacks which have
been made in court and out. He stands here
with his record before this court, and in spite
of the insinuations which have been made
against him. In his behalf I defy any man to
bring up a single -aot of' his in
support ot those inuue <c’o sand Insinuations
He is attacked, sirs, by a man who is unworthy
to loose the latches of hit shoes. He stands
with a record made within and without the
state of Georgia, and with a record made in the
report* which, have been placed before the
oourt, in the administration of these trusts,
which should be nmied by any man.
THE DIRECTORS UPHELD.
I say It, If your honors please, without fear of
contradiction, not that there could not be
gathered together a more representative body
of Georgians than is represented in the Central
railroad board, hut that there is rone such
gathered together. I do not mean to
say that every man upon the
Central railroad board is perfect—no man is
perfect—but I do mean to say that every man
upon that Central board is honest In his inten
tions to preserve that property for the boneflt of
all that are interested in it, and not alone for
the benefit of the majority stockholders; and
what I ask for your honors to do is that when
tbls case is concluded you will turn this prop
erty over to its legal owners, the president and
directors of the Central Railroad and Banking
Company of Georgia, against whom charges
have been made, but agaiust whom not
one single act has been brought up which shows
that they are not lu every respect faithful to
every trust that has been Imposed upon them.
If your honors please. I would thanx you for
the kindly attention which you have given me.
I hope you will pnrdqu the length of time
which I have taken, and possibly the ovorzeal
which I have displayed My professional in
fancy was spent in the lap of this corporation,
and my honored father before me was its ooun
sel for iwenty-one years. I love
this corporation; I love the man who
is at the head of it, and when I see it or him as
saulted and feel that they are in danger I do
Dot feel that there is anything that I can do or
say in their behalf which I could not aDd would
not willingly and cheerfully do.
Mr. Lawton was warmly congratulated
at the dote of his speeoh by those around
him. Air. Lawton ooncluded his argument
at 12:25 o’clock.
Capt. Jackson announced that his reply
in behalf of the Richmond and Uanville
and the Georgia Paoiflc would be brief. He
had a typnwritt n copy of his argument,
which he read as follows:
CAPT. JACKSON DEFENDS THE DANVILLE.
Capt. Jaokson read tbe following:
May it please the court: This is not the time
for the Richmond and Danville nor the Georgia
Pacific railway to be heard. If in tbe further
progress of this most remarkable case it be
comes necessary to defend their corporation
and their property, they wlil be found amply
prepared to meet the attack, no matter whence
it come. But a brief and condensed review of
the history of the Central system, aDd of its re
lation with tbe Richmond and Danville for the
last nine months, may prove as iteresting as it
is Instructive. 1 propose to state only facts,
which cannot be successfully controverted—
facts overwhelmingly sustained by the testi
mony before this court. Oa or about June 1
last tbe Richmond and Danville, at the request
of the Georgia Pacific, assumod tbe
operation of the Central Hues—not ot
tbe bank. Immediate opuosition was de
veloped iu this state because of the al
leged violations of the constitutional provisions
against monopoly iu a lease alleged to have
been made to the Georgia Pacific. The general
assembly met, and measure after measure was
introduced looking to an attack upon such
lease as unconstitutional, illegal and contrary
to public policy. The general assembly ad
journed without affirmative action. Still the
outcry continued and no matter what tbe policy
pursued by toe Danville, it was attacked, as a
result of the supposed illegal lease.
The very atmosphere was charged with threats
of injunctions and receiverships. Suddenly the
blow came—not unexpected—but from an un
expected source. Mrs. Howena Clarke, tne
owner of fifty shares ot stock of the par value
of $5,000. champioued by the chtvalrlc and
courteous Rountree, propelled the fatal arrow,
and In the twinkling of an eye over $3,0011.000 in
values was destroyed The basisof this action,
as demonstrated by tbe evidence before the
court, was not ti.at the Central bad outstaud
ing $1 of matured Indebtedness, not that the
Danville had faibd to comply with auy obliga
tion resting upon it, but solely and excluaifely
the constitutionality and illegality of tbe sup
posed lease. The same complaint had come
from the press, from the legislative hall, from
competitive lines, and. lastly, from the court.
A temporary recover for the Central wae ap
pointed. ands hat was difficult before, on ac
count of the enormous financial burdens on the
Central, was still more difficult now. What
was the action of tbe Danville? When it
assumed control of the Central in June, 1891, it
found banked up against it ud Immediate press
ing Indebtedness Of, approximately, *-00,000,
Including tbe pay rolls for labor in
tbe month of May, amounting |to $319,000.
This it paid, though not one dollar of th* in
come of that mouth went into its treasury It
lias continued to meet every obligation or the
Central until the appointment of a reoeiver on
March 3. Even a* law as March 1, two (lavs
before tie appointment, It paid coupons to tne
auiount of IWO.OUO. f..T which the Central Is
liable on Msreb !• It surrendered possession
at all ths central lines to ths receiver of ths
Coin pan v in batter coodiWon, both a* to equip
maul andnabbed, than when it assumed uonti 01.
It isdnoed the o-araung rttaose* of the sys
tem by an Sconotne al edmihM.tr siion $.; 6.0 *j
pan ean.mLsn l had it aot base for this most
SAVANNAH. GA., TUESDAY MARCH 29, 1892.
unfortunate of bills, would have hod Us credit
established. But what is now asked of this
honorable court, that $500,000 of the stock ot
tbs New England Steamship Company. In the
possession of the Central Trust Company a* se
curity to the Danville on aooyuuc of indebted
ness of the Oentrai paid by it, for which it ole!ms
it was not liable, should be turned over
to the receiver. Tbe complainants cannot be
serious in such a contention. Tbe settlement
between theee companies cannot be now had,
and must be a '.justed by final decree. The Cen
tral Trust Company has not been served nor has
ft appeared in this litigation. There is no such
prayer in the bill. Assuredly no more need be
■aid upon this extraordinary request.
During the reading of Capt. Jackson’s
paper Judge Speer interrupted him and
took occasion to oall hi* attention to the
fact that aocordlng to the allegation as set
forth in tbe bill for the receiver, the situa
tion was one of extreme gravity and one
that called forth the promptest and most
deoirive action.
A recess of twenty minutes * as taken at
the coaolu'ion of Capt. Jaokson’* argu
ment.
MAJ. BACON’S ARGUMENT.
Maj. Bacon commenced his argument at
1:10 o’clock. He spoke about au hour and
three-quarters. Ha endeavored to econo
mize iu time os much as possible and not to
cover tbe grouud already covered by bis as
sociates. This oompslied him to make only
a disjointed reference to tbe various points.
In opening his speech Maj. Bacon announced
that he had no paper prepared of his argu
ment, expecting to cover the general poln s
and development. Asa representative of
tbe stockholders, he said, he had no desire
except to preserve their interests. There
were some 30,000 shares, he said, outside of
the 42,000 shares held by the trust oompany
and the holders of these 30,000 share* were
the ones most interested in the result of the
litigation. Tbe holders of the 42,060 shares,
he said, had no interest in the road what
ever outside of tbelr voting power. There
were also some $4,500,000 debentures, tbe
holders of which were interested in the re
sult of the litigation. The fact that by
strenuous search only 6,000 shares had been
found, tbe holders of which were opposed
to the appointment of a receiver, was
evidence, he said, that only that number of
minority stockholders were opposed to
breaking the lease.
ILLEGALITY OF THE LEASE.
He submitted that it was not in the power
of the Central to make the lease now of the
Georgia Pacific, and that it was never the
design of tbe original charter that the
Central should lease itseif out. Maj. Bacon
discussed the question of the powers con
ferred upon the two roads by tneir charters
at some length. He made a strong nreu
ment on the question of competition be
tween the lines involved. "The courts deal
with things as they are,'’he said, "aud not as
they may be made fictitiously to appear,
cot that there is competition technically be
tween the Central and the Georgia Pacific
and the Richmond and Danville, but that it
is part of a general scheme to defeat com
petition.’’ He compared the situation to a
chess board with the roads Involved as
pawns, and the other figures
moved at will by the players,
the Richmond Terminal, which stand in
the back ground. Maj. Bacon laid great
stress ou the fact that the Richmond aud
Danville board consists of thirteen mem
bers, of which nine are member* of the
Terminal board; the Georgia Pacific board
of ten members, of which seven are mem
bers of the Terminal board, and the East
Tennessee board of fifteen members, of
which nine are members of the Terminal
board. All four of these corporations
might have their headquarter in tbe same
building iu New York, he said, hold their
meetings in the same rooms and transact
business for all four roads without ad
journing ti e meeting.
A CONSTITUTIONAL POINT.
An important constitutional point made
by Maj. Bacon, but uot stressed at great
length, was that tbe fact that competition
may be for points beyond tho limits of the
state does not relieve it from the scope of
tho constitution. Ho long as competition
exists from points within thß state, he said,
the state has power over it. Tne main
purpose of the bill, he said, was already
accomplished, the Richmond and Dauviile
having thrown up the lease and the counsel
having shown by their amendment tneir
willingness to accept this condition of af
airs. The 42,000 shares, he said, was the
vital point. The question of the receiver
ship largely depended upon tho aotiou of
the court upon the prayer for the enjoin
ing of these 42,000 shares from voting. The
holding of tho shares, he said, was illegal
and violative of ths constitution. They
were held not simply to control the road
but to ruin the stockholders and wreok the
road. He said that It could uot be possible
for the road to be kept in good condition
when the forces engaged in its preservation
were reduced from 50 to 65 per cent. This
was evidence of an intention to wreck tbe
road.
THE FAILING OFF IN COTTON.
He instanced the statements of last sea
son, showing that competition had been
killed and traffic diverted from the Central.
He showed that last season the Central car
ried seventy bales of cotton out of Atlanta,
while the East Tennessee oarried over 7,000,
a large part going in tbe direction of Ba
vanuab, and these seventy bales were car
ried cut by the Atlanta and West Point
and delivered to the Central at Newnan.
At Columbus the East Tenne-see carried
out more cotton than the Central, though
tbe East Tenuesse has no line there.
At Montgomery tho Ceatral carried 10,887
bales aud the East Tennessee 50,394, and the
East Tennessee has no line at Montgomery.
At Opelika the East Tennessee lias no road
and every road there is controlled by tbe
Central, yet the East Teuuessee carried out
6,000 bales and tbe Central 2,000. At Rome,
where tbe two lines are on an equal footing,
the Central carried out 150 and the East
Tennessee 912. At Selma, Ala., both have
lines. Tbe Central took out 750 and East
Tennessee 25,587, 1,463 going to Savannah
and 3,000 ana over to Charleston.
A SCHEME TO WRECK.
Maj. Bacon dwelt on these facts as show,
lug a deliberate design on the part of the
Terminal oompany to rua down the Cen
tral. "The parties who hold the 42,000
shares of stock own nothing but the voting
power of the stock,” he said. "They haven’t
SI,OOO worth of interest in it. Tuey have
issued bunds on tbe stook of the Georgia
company and sold them and received their
money.” Maj. Bacon contended that
if the purposes of the litigation
were to be accomplished a receiver
ship was necessary. The Richmond
and Dauviile could pass a resolution taking
the lease hack. If tbe present board would
not subserve their interests they could elect
another board who would serve their pur
pose. There is to be en accounting, and
with a subservient board there is nothing to
prevent them taking tbe Central securities
and dictating their own so tlement. He
■aid that if tbe old set of directors would
not obey their behests they could elect an
other. He contended that tbe Central is a
solvent oompany, and they wore asking a
reoeiver, not because tbe property is insol
vent, but to rescue a solvent property
"When the court says that the 42,000
shares held by the trust company In New
York susll not be voted, then Mem Thomas
and Inman and Brice bare no more to do
with it,” he said. "They will bare no fur
ther interest in It when they can no longer
vote it."
WILLING TO ADO FT THE BEST COURSE.
Mej. Hae m said that be had grave doubts
a* to tbs proper course to pursue. Any
plan by which tbe court would put tbs
bolder* of ths 42,000 shares out of the power
of voting it, and would make provisions
for tbe protection ot the property and
the preveution of waste would be
satisfactory. He was unahle to see anv
escape from a receivership if tbe 42,000
shares are allowed to oontmue to vote* Ha
invoked the attention of the oourt to anv
means by which this property can be saved
from insolvency and be properly managed
for the benefit of tha-e most interested. Maj.
Baoou’i speech was oonoeded on all a.das to
have bean a strong argument.
There was an intense eagerness maul felted
in the countenances of the spectators when
Maj. Bacon doted.
JUDGE PARDEE’S DECISION.
The judges conferred together briefly and
then Judge Hardee announced the decision.
In tbe first place, the oourt said that the
94 equity rule did net apply to this ease.
The validity of tne lease mads nominally to
the Georgia Pacific, really to the Richmond
and Danville, and perhaps to tbe Rlohmond
Terminal, was the next question, aud the
oourt said that the necessity tor passing on
this point at once was obviated by abandon
ment of the Central system to the reoeiver
ot the oourt end the surrender of the lease.
As to the matter of stock, as long as the
42,000 shares is held by or in tbe interest
of any competing oompany it cannot
he legally voted in any election of the road.
I am satisfied that a oourt ef equity can
control that voting power without affecting
the right to sell or dispose of it. The Riob
mond Terminal will be enjoined from tbe
power of voting tbs stock. Th* oourt has
been put in possession of the property by the
minority stockholders and is disposed to
hold on to it for the protection of the stock
holders. There are other large interests
outside, however, whioh must be regarded.
A receivership would be the logioal conclu
sion . There is another method by which
these interests can be reached and 1 am dis
posed to a modified receivership. An
injunction will be issued to tbe
Central Railroad and Banking Company to
prohibit the voting of tbe 42,000 snares of
stock at auy election. It is proposed to turn
the property over to the Georgia direotors
of the company at temporary race.vers
until an election can be held under tbe obar
tsr of the Central for a legal board to oon
trol its affairs. Judge Pardee said that this
course would be pursued unless objection
was made by the attorneys of the road.
The intimation was that a permanent re
ceiver would be appointed unless the pro
posed ruling should be accepted.
SIGNING OF THE DECREE.
Court adjourned Immediately after the
ruling of the judges was heard until 10
o’olock to-morrow to prepare aud sign the
decree. Subsequently it was detoided that
the lawyers should prepare the decree aud
submit it to the j udgvs to be signed to
night.
There was a hubbub immediately on the
adjournment of oourt. The deolslon seems
to give general satisfaction on all side*.
Expressions of approval were general.
Gen. Alexauder immediately arose
and announced his satisfaotiou at
tbe result to around
him. “It is just wbat we have expeoted
and all that we could desire,’’ ha said. To
the Mornino News correspondent he said:
"it is the best possible aqiut'ou of the
sltuatiqu. It affords tun Central the protec
tion of the oourt until such time at Its affairs
can bo adjusted, re-establishes c nfidence in
the property aud saves us from the embar
rassment of a permanent reoeivt rship. We
here no reason to find fault at the position
in which we are placed. It is a complete
vindication of the policy and management
of tt:e present board of directors-” Several
of the directors, Mr. Hull, Mr. Mills, Mr.
Garnett, Mr. Vetsburg and Mr. Inman and
others were eesn a.id expressed them-elves
as satisfied, in fact delighted, with the solu
tion of the situation. They declared unani
mously that the decision was perfectly satis
factory. The representatives of the various
interests present also expressed themselves
likewise. The representatives of the New
York creditors said that they were wed
pleased with the decision and were assured
that their interests would be well taken
care of. They said further, that there
was no dlspovition on the part of the New
York creditors to push tbe Central and in
timated that they wero very favorably dis
posed to aid it. From second hand it is
know i that they have offered to take cere
of it on certain conditions, one boing that
they shall be represented ill the reorganiza
tion. Messrs. Rountree, Erwin and Bao n
were well pleased with the decision. They
had won the fight and felt like victori.
“We have accomplished all that was in
tended by the bill,” said Mr. Rountree,
"and we could ask nothing further.
We have enjoined the 42,000 shares of
stock fi om voting and have returned the
control of the property to the bauds of its
friends, where it prooerly belongs. We
have wrested the oontrol from tne great
Terminal company, which has controlled
and dictated to it for six years, and may
sav. without boasting, that it is tbe greatest
victory of the kind accomplished m years.”
Others well acquainted with the situation
expressed the opinion that tbe Terminal had
received the severe it blow possible to give
it, and th tt within six months it would be
in the hands of a receiver. It played its
game too sharp for once, placed itself out
side the court and is now the only party to
feel dissatisfied with the verdict.
COMER ELECTED PRESIDENT.
H. M. Comer was elected president of the
Central Railroad nnd Banking Company of
Georgia at 11:30 o’clock to-night after a five
hours'session of the dire'tors. When the
judge’s decree was received, Gen. Alexander
presented Lis resignation and gracefully re
tired from the field. The directors met at
5 o’olock this afternoon in Col. Phliuzy's
private car. After a three hours’ ses-ion
the meeting took a recess for supper. Ths
directors wero the most agitated set of men
ever seen. They canvassed each other in
pairs without intermission for two hours.
Joseph Hull and J. K. Garnett seemed tbe
most active and also the best satisfied with
the results of their work. There seemed to
be two parties—one for Mr. Comer and one
for Col. Phluizy, while It was also said that
Gen. Alexander would not resign. It was
ail about the bomb foretold m Sunday’s
Morning News, the reorganization de
manded by the New York creditors, and
osme near splitting the board all to pieoes.
T,ilags oame to a foous by tbe time of the
seooud meeting at 10 o’clock, when Messrs.
Lawton and Cunningham returned from
Judge Speer’s house with the decree
signed by the judges. The situation wai
immediately solved by the resignation of
Gen. Alexander aud the election ot Mr.
Comer. Frederick Cromwell, treasurer of
the New York Mutual Life, was also elected
a director. Tbe eleotlons were to fill the
vacancies of Messrs. Maben and Sorrel, who
have never qualified as directors. The Sa
vannah directors will leave to-night at l
o'clook on a special train for Savaunab.
Text of the Decree.
Following is the full text of the decree
burned to-night :
In the circuit court of Uie United State# for th*
eastern division ot the southwestern district
of Georgia,— Mrs Kosreua darks et al., vs.
The Central Railroad and Jhoiking Oompany
of Georgia et al , la equity, hill. etc.
The above slated cost- came on to be beard
upon the motion for litr upi>otatinent ot a re
ceiver and for au Injuaett u peadaui* Hut, and
w* argued: aud It appearing lo the court th*.
fcluoe tti* filing of the above bill la tbe above
stated cj and tbe api< •muosot of a tempo
rory receiver nt the property end assets
of tbe Datura! Rail oa i eel Jlaukunr
t onipauy of Georgia, that tan Rieiuabtid
•ad IhMSviii* Henroed Ounpaay, which was is
possession of ths said railroad and other prop
erty of tbe O# tral Railroad an l Banking Com
pany ot Georgia at the time of tbe tiling of aatd
bill, ha-by Its pleading* abandoned the posses
sion of said railroad end proper: y to the court
and the stockholders of tbe Central Railroad
and Banking Oompany of Georgia, and ha* re
linquished all right to have said property re
stored to said Richmond and Danville Railroad
Company under any olaitu arsing out of the
alleged lease attacked by tbe bill of ths com
plainants; and It further aptiearing to the
court that tbe Central Railroad and
Bdhklng Company of Georgia by its amended
answer has submitted itself to the juris fiction
of the oourt as to the course it shell pursue in
reference to tbe alleged contract aud lease of
its property to th* Georgia Pacific Railway
Company, and prayed the direotion and instruc
tion of tne court in the premises, and expressed
Its willingness to resume poes-ssion of its prop
erty and the managmietit of Its said railroad;
anti it further appearing to the court that 42,2 0
shares of ths stock of the said Central Railroad
and Banking Company of Georgia is carried on
tbe list of stockholders of said Ceatral Rail
road and Banking Company of Georgia in
the name of the Central Trust Oompany of
New York, the voting power of the some being,
however, exercised by the Richmond and West
Point Terminal Railway and Warehouse Com
pany. aud has been so exercised by said last
mentioned company sine* January, 1888, and it
further appearing to the court that the aoqusi
tlon and holding of said 42,200 shares as above
set forth, tbe same constituting a majority of
the stook of the Cential Kairoad and Banking
Oompany of Georgia, for the purpose of keep
ing perpetual control of tbe same, was end is
in violation of tile constitution aud of
the laws of the state of Geor
gia; and it further appearing that
the present directors of the Control Railroad
and Banking Company of Georgia were elected
at an election in which the vote of sold 42,2 0
shares of stock controlled, it IS therefore or
dered and adjudged:
1. That said Central Railroad and Banking
Oompany of Georgia and iu directors are en
joined and prohibited pendente lite from allow
Ing the said Central Trust Company ot New
York, or the said Richmond anil West Point
Terminnl Railway and Warehouse Company, or
any other railroad company compeilng with
the Central rmlr ad ot Georgia that may. pend
ing this order, acquire ownership of
said stock, from voting said 4*,200
shares of tne stook of said Central Rail
road and Banking Company of Oeorgia
or any part thereof, at any election or meeting
at which the holders of the stock of the said
Central Railroad and Ranking Company of
Georgia are entitled to vote under their charter.
It is further ordered that K. P. Alexander,
Joseph Hull, K. p. Howell, James Swann, J. K,
Garnett, A. Vetsburg, Charles H. Pldntzy. H. T.
Inman, George J. Mills, Henry R. Jackson and
U. B. Harrold be and tney are hereby appointed
receivers of this court of the railroad property
and assets of the said central Railroad and
Banking Company of Georgia, to take
charge of the same and to operate asid
Central railroad with the usual powers granted
to receivers of railroad* until there oan be a re
organization of said board of directors of said
Central Railroad and Ranking Company of
Georgia under and in pursuanoo of the provi
sions of the charter of thn said Central Railroad
and Banking Company uf Georgia, and of the
order of this oourt hereinafter made, and to
turn over said railroad and said properly an.l
assets to said newly elected hoard of directors
when the same shall be organised as aforesaid
upon the further order of the court. Such re
ceivers ao appointed aro hern dispensed with
giving bond, but are directed to take an oatn
for tbe faithful performance of tbe duties of
receivers until rslens.'d by the court, or some
officer duly authorized to administer the same
K. P. Alexander, fsq , heretofore appointed
temporary receiver of this court, shall Immedi
ately turn over to tho receivers hereby ap
pointed, all aud singular, the asset* of the Cen
tral Railroad and Banking Company of Georgia
in bis hands, and all obligations or liabilities
when arising ex contract or ex delloto, which
may have been incurred by him in the adminU
traiion of the trust confided to Llin in this cause,
and all accounts for uurrent expenses due by
the said Central Railroad and Banking Com
pany of Georgia, including claims for personal
injury and freight claims, and all such other
accounts and claims ox ure usually settled from
day to day iu the ordinary course of business,
shall be uvscined and discharged in the regular
course by the receiver* hereby appointed.
It is further ordered that said receivers shell
comply with the orders of this court heretofore
made In reference to paying the employes who
o|ierated tbe railroads of the Central Railroad
and Banking Company of Georgia, while ths
same wa* in the Dossoimon of the Richmond
and Danville Railroad Compauy, the ultimate
1 ability for the payment of the same at between
sai l companies and the Georgia Pacific Railway
Company being reserved.
It is further ordered that said directors herein
appoint'd receivers a* afore al l shall have and
exeroise In tbe operation of said railroad and in
the conduct of the ordinary business of said
company, all the powers belonging
to tne directors of said com
pany, nuder its charier and in accordance with
the said ebart*r and by laws of said company
not Inoouststent with this order nor tile pos
session of said property by thin court, and that
as directors of said company they shall have
th* power to elect a president, aud to fill any
vacancy or vacancies lu their number iu thn
same manner as provided tor the filling of va
cancies which may occur by resignation or
otherwise in the board, under the charter, but
shall not pledge or dispose of any of the securi
ties of said company to rai e money, without
tbe approval of tbe court,except in the regular
course of business.
It is further ordered that au olection for
directors of ths Central Railroad aud Banking
Company of Georgia shall be held at the
principal office of tne company, in tne city of
Savannah, on May 16,1892, a: such hours as inay
be fixed by tbe charter and by laws of tbe com
pany for such election, and that at said elec
tion no votes shall Imi received iu behalf of tne
42,200 shares of stock standlnv on tho uamo of
the Central Trust Company of New York and al
leged in the bill to be controlled by the Rich
mond and West Point Terminal Railway and
Warehouse Company unless upon a bona
fide transfer of the same approved
by this oourt, ana that tbe directors
elected by the stockholders at Hucb
election shad upon their qualification constitute
the board of directors of the Central Railroad
and Banking Company of Oeorgia until the
next election.
It 1* further ordered that the receivers heroin
appointed shall also take potaettion of and
operate all the property and asset* of the
Ocean Steamship 1 ompauy of Savannah, ttie
New Ennland and Savannah St-amship Onm
pany, the Savannah and Western Railroad
Company and tne Montgomery and Eufaula
Kail way Company in the same manner as Is
above provided for os a part of the assets and
system of the Central Railroad and Banking
Company of Georgia.
It is further ordered that the costs of this
suit, exclusive of counsel fees,shall be advanced
by the receivers, tiie ultimate liabilities for the
Bame to be hereafter determined.
The question of counsel foes for the com
plainants' solicitor is not passed on at this time.
Bos A. I’ahukk, Circuit Judge.
Kgonr Bpber, District Judge.
Macon, Oa., March 21, 1892.
DOMINO BACK TO SAVANNAH.
Atlanta, Ga., March2B,—Official notice
has lieen received from Eiward Mclntyre,
coutroller, that the Central railroad aud
itor’s detriment will be removed to Bavan
nah lu a few days.
SALARIES INSTEAD OF FEES.
The Par Proposed for United States
District Attorneys.
Washington, March 28.— Henator Vest,
from the oommittee on tbe judiciary, to
day ropar.ed favorably tbe bill to pay
United States district attorney* fixed
sslarlos In lieu of the feee and per oentums
now allowed by law. Under tbe bill the
salaries for the districts will bs as follows:
Florida, southern, $1,509; northern,
$3,000.
Georgia, southern, $3,000.
Mississippi, southern; North Carolina,
eastern; Virginia, eastern, $3,500 each.
Alabama, southern ; Mississippi, northern;
Boutb Carolina; Teune-see, eastern, middle
aud western; Virginia, western. S4,O<JO
each.
Alabama, northern amt middle. Georgia,
northern. North Carolina, western, $5,000
•sob.
confirmed at a Judge.
Wasuinutos, Mar 'A *1 -The Senate
to day otofiruivd the uuuiutlUHi of Blanton
J, Deolis of Indiana to bs judge of the
court of olaitu*.
BUND fflj BOLE.
The Speaker Refuses to Report
a Closure Rule,
THE ACTION VIRTUALLY KILLS
THE SILVER BILL
The Fraa Coinage Leader Very Angry
With the Speaker and Hints at
Bad Faith Th* Speaker Defends
Himself From the Charge—He De
mands a Petition From a Majority
of the Democrats Asking for a Clos
ure Rule Before Consenting to Is
sue One.
Washington, Maroh 28—The Bland
bill will not be received. Mora than that
no free coinage measure will pass at this
session. Tbe only hope tbe free coinage
men had of getting a free oolnagablU through
after the decisive vote of Thursday, lay in
the adoption by the House of a closure rule
whioh would out off filibustering. Up to
this morning they thought they would got
such a rule from the oommittee on rales,
and, that with the aid of those republicans
who would not follow sx-Speaker Raed In
this matter, they would got it through tbe
House. They were ths mors
confident of this because
.Speaker Crisp himself had
taken charge of their fight, when Repre
sentatives Bland, I’leroe and Uartins
beoame discouraged after Thursday’s bat
tle. Their surprise was only equaled by
their rage when they discovered this morn
ing that the speaker, who bad been leading
them, had succumbed to the warniug of a
few democrats beaded by Representative
Culberson of Texas, who, hating closure
more than they loved free ooiuage, had
told him that they would oppose a olosuro
rule on the floor utiles* it was requested by
a majority of the democrats of the House.
Representative Culberson reminded Speaker
Crisp of the time when tbe rulea
were being disoussed iu caucus and
Mr. Crisp secured the adoption of tbe
rul* providing for olosure by promising
that its powers should never be exorcised
except lu response to a request from a nia
jonty of the democrat* of the House, and
assured him that a majority of tbe demo
crats of ths ilium did uot want tbe matter
put uuder closure. Mr. Crisp saw at once
that nothing more could be done in the face
of suoh opposition, and the light roaljy
ended right there in his room. Mr. Blaud
recognized that it was all over as soou as
Mr. Crisp told him this morning his deter,
mination, for he rememliered that be bad
only tiesn able to get 102 signatures
to hi* request for the consideration
rule aud he did not even attempt to get Up
a petition, knowing, as oltiers found out by
trying, that it would be usaleas.
BLAND’B ANGER.
Mr. Bland’s disappointment was not a*
great as on Thursday night, out his anger
was much more intense, as was shown in
the interview be gave out to-night. Mr.
Bland is a sincere, one-idead man, and real
izing that hia beloved idea baa been sholved
for this session and probably for this oon
gress, he is In the depths. Tnere are others
more or leas like him, who feel just as he
does, but most men on the democratic
side of the House are rejotoing
over the result privately, if
not publiclv, believing, as they and >, thatit
makes it easier for the democrats in the
presidential campaign. Thn republican*
are, as a rule, sorry that the direct vote on
the Bland bill was nut brought about,
although they say Thursday night’s votes
gives them reoord enough for cainpaigu
purposes. Those of them who are repre
sentatives of the silver mine interest are
regretful for a more personal reason, think
ing that the bill might have passed it it
had ooine to a vote nnd some of them still
entertain the hope that u free ooiuage bill
may come over from the Senate, but they
have to admit that the cuances
are all agaiust it being voted upon in th*
Homo. For all practical purposes tbe sti
ver question has been answered for this
srssiou. Many democrats and republicans
alike agree la saving that the answer which
has been given indicates plainly that Cleve
land and tariff reform will bs presented to
the country as candidate and issue by the
Chicago convention.
THE STORY BY PRKSB.
By the Associated Press.
Washington, March 28.—Tha silver bill
is dead la tbe House of Representatives.
Tbe free coinage men to-night acknowledged
this. Speaker Crisp, they learned to-day,
had decided not to report a closure rule
from the commute.) on rules unless a ma
jority of tbe members of tbe Democratic
party in tbe House should so request. The
intelligence dumfounded them, as they bad
confidently expeoted the rule to be
reported to-day or to-morrow. They
were exceedingly angry, and at
first were disinclined to make any
effort to get the petition signed. Later in
tbe day Mr. Fierce of Tennessee circulated
the petition and got a number of signature*
to it, but he found that many silver demo
crats would not sign, and late this afternoon
be announced that the petition was with
drawn and that the free coinage men had
given up the fight in the Home. Mr. Fierce
said: “We will make no furibee effort and
have deolded to let the committee on rule*
assume the responsibility, I have seen Mr.
Bland and speak for him also.”
BLAND INTERVIEWED.
Mr. Bland this afternoon made tha fol
lowing authorized statement to an Asaooia
ted Free* reporter, with reference to the
sliver bill: "When tbe rule was first re
ported setting apart three days for consid
eration of tbe silver bill, I insisted tbat the
rule should be a continuing order to be
considered from nay to day until disposed
of. knowing that three days oould be
filibustered out and no action bad upon
tha bilL W ben I made this suggestion to
Hpaaker Crisp he rather tartly replied tbat
I ought to trust tbs oommittee ou rules iu
tbat matter, that if ti re* days were fili
bustered out without disposing of tbe bill
tbe oommittee oo rules would report a rul*
preventing all filibustering motions and
compelling a vote upon the bill. The debate
ou tha bill ran until 6 o’ol ok of tbs third
day, wbsn I moved tbs previous question.
Bsveral votes wsre taken upon tbe hill aud
motions pertaining to it, when tbs opponents
of tbs bill ooiuwsooed filibustering by
moving to take a recess, moving adjourn
ments and {falling tbe roll. It
understood that motions of Mil* kind oan be
iua>i* without limit end no bill oan possibly
pass as tong as tne** motion* are kept up,
fusae motions au>! Oil buttering taotios were
4 DAILY, $lO A YEAR, f
< 3 CENTS A COPY. V
i WEEKLY, $1.25 A YEAR I
kept up until after 12 o'olook on ths last da?
for the consideration of the bill.
decision of tbe silver men.
‘ ‘The friends of the bill were determined
to continue in session so a* to prevent tha
lapse of tbe legislative day. Myaelf, Mr.
Fierce of Teansenea and other members ng
ths House went to Speaker Crisp
and asked bis advice about the
matter, whether bo thought the*
filibustering bad proceeded long enough to
satisfy the House and country, tbat tbe
committee on rules woul 1 be warranted iu
reporting a rule by whioh all filibustering
motions would be prevented, and bring
the Honte to a direct vote upon the bill. He
assured myself, Mr. Pierce, Mr. Stone ot
Kentucky , and a number of others tbat ha
thought the filibustering ha l gone ou long
enough to demonstrate the fact, and tbaV
the oommittee on rules would report a rule
to bring the bill to a vote. I may add that
I moved that tbe House adjourn Thursday
night at the instance of the speaker, an t
with his emphallo slaiemaot tbat be would
report a rule ouitiug off filibustering moJ
tions and bring tbe bill to a vote.
the speaker's advice.
“The next day twins; Friday I went tnco
the speaker’s room ani met Judge Crisp.
He then advised the Introduction of a rule
to bo voted on to-day (Monday) preventing
all filibustering motions and compelling a
vote upon the bill. Lieut down and wrote
out the rule himself. I introduced It at hi*
request and suggestion, end had it referred
to his committee with the distlnot under-,
standing that tne rule would be reported
to-day. I never heard anything
•bout his wanting a petition
of tbe majority of the democrats
until tbls morning, when we ought to
have been voting upon the order itself.
Theu the speaker said that lie would not res
port the rule unless a majority of tbe detno
orats petit! med for it. He said nothing
about tbe petition Thursday night before
the House adjourned. Had he instructed
them that he wanted tne petition we could
have gone to work anil g A the members of
th* party voting for tbe bill, which was a
majority of thsrn, to have signed tha
petition, no doubt, but ao Intimation'
of that sort was given by tha
speaker. We oonsidered that the roll
oall of the Housn, showing as It did a laiga
majority of the Demooretio party in favor
of the bill, sufficient warrant for him to act
according to tb* wishes of thn Democratio
party as shown upon th* reoord.
THE CHANGE OF FRONT.
"About tbe time of the meeting of tba
House this morning I went into tbe corns
luittee room, aud for tbe first time learqed
that be had ohange l hia mind. A telegram
appeared in the Now York World this
morning stating that the correspondent of
the World had the information from the
highest authority tiqat Speaker Crisp would
exact a petition before acting upon
his rule. That was the first intimation that
I had bad ot anything of that character.
The speaker bad given a number of free
ooiuage members of ths Deinooratlo party
to understand tbat he proposed to have a
vote either to-day or to-inorrow upon this
rule. Ws had telographed for the absentees.
We had mode every exertion to have our
men in the House and to have them present.
When wo found that the attitude ot the
Speaker had changed, it created confusion
aud consternation among the free ooluege
advocates. They felt that they hud
been deoelved and disappointed
Sr the action of the speaker.
e bad given them no obance to get a pe
tition. Of.course thov regarded it that he
had made pledges and promises ns infiioa'ed
In the New York World dispatoh to our
opponents, pledge* and promises that he did
not advie the friends of free coinage bs
had made. The consequence Is tbat at tba
critical moment they saw that the speaker
bad deserted them and many nu mbers,
etuticlally those who were personally the
followers of Mr. Crisp, are now re
fusing to sign any petition. Wbiia
petitions are being circulated It is
very uncertain whether under the circums
stances a majority can be got for that pur
pose. The faot that the speaker himself has
changed his attitude toward tbe measure
and has deoelved the friends of the bill by
his action ha* caused a great many free
ooinage people to weaken in their position ,
aud X see at this time but very little hops
of getting a majority of the members oa
the petition ask lug that tha rule be reported.
Of course tbe speaker has great weight and
and power, and since he has
shown a disposition to let the bill lie on tba
table, members who have confidence la
him will go with him, and this leaves ua
wi'h the bul having not only tho anti-frea
ooinage men lu opponeuu, but also tba
speaker opposed to it, and those who per
sonally follow him. What may be the out
come of It I cannot say. We can count a
sufficient number of members who have
been voting against consideration of tba
bill who stato emphatically that they will *
vote for the bill It it ever comes up on its
passage to give It from ten to twenty ma
jority."
CRISP makes a reply.
Speaker Crisp was shown Mr. Bland'S
statement this evening aud said be was sur
prised that Mr. Bland should so far forgot*
ten himself and the true situation as to en
deavor to mislead the public by such a state
ment. In justifying hit position, Mr. Crisp
said that when tho rules were being cons
sidered, he had, in caucus,
pledged to hi* party that no
rule should be reported prohibiting filibust
ering or catting off dilatory motions exs
oept at the request and desire of a majority
Of the democratic members of the House. A
majority of the democrats requested that a
time be fixed for consideration of the free
Coinage bill, but making no reference
therein to any change of the rules. In re
sponse to this request the committee per
mitted three days. The speaker
said that as he recollected
Mr. Bland did want to inoorporata
some limitation of the right of the House ta
filibuster, or wanted a continuing order,
but the committee determined tbat until
the necessity for such a rule was demon
strated they would not report it. The bill
was taken up and debated for three days
and finally saved from tbe table by tba
outing vote of tbe speaker. Mr. Crisp said
this tie vote was a great surprise to all par
ties, because when the original order was
made It was generally understood tbat tka
majority In favor of free coinage was from
thirty to forty.
an inference.
A majority of tbe democrats voted against
tabling the bill and thereby demonstrated
that they favored its passage. Speaker
Crisp said that he assumed that these gentle
men so voting were In favor of a rule which
would bring tbe House to a direct vote oa
tbe bill and prevent filibustering, and so
believing be said to Mr. Bland tbat be bad
do doubt tha oommittee would report tbs
rule. He also said to Mr. Bland that iu his
judgment there had been sufficient filibiuter
lug to demonstrate tbe Impossibility of tha
passage of tbe bill without a rule
to bring tbs House to a
direct vote. Tbe speaker also drew ths
resolution Introduoad by Mr. Bland, still
bsllttv Ing that those geutlemen who voted
agaiust tabling tho bill were in favor of
foroing a direct vote upon tha measure.
But alter that time, frianda of tba silver
bill, a* decided friends as Mr. Bland, sail
the speaker, bad some to him end said they
did uot del ure their vote against tabling the
bill to be construed Into • request tbat a
rule prohibiting filibustering should be re*
ported, that while they favored free coin
age of stiver and wanted to
