Savannah morning news. [volume] (Savannah) 1868-1887, 1881-09-26


if sunday, on Saturday"
For several years, during the first part of the
lease. we dill not make dollar of dividend.
We found the road desperately run down; in
n condition we could hardly run in safety
The prophecy was that we would take the road
and run il awhile and throw it back upon the
State. But there happened to be gentlemen
connected with it who do not deal that way
with the public and we determined. if it broke
us. we would stand no to it and go through
with it honestly and fairly to the last day; and
we stand there yet We went TO work: and,
instead OF paying dividends, we made improve
ments; we have laid most of the road with
steel rails; we put in iron bridges instead of
the Stacking wooden ones we received. We
have improved the road in every way till it is
in condition that presume none of you will
say you ever saw it better. There are few
roads in the United States better than the
Western and Atlantic. A half million of dol
lars would not nearly pay the difference be-
tween its condition then and its condition
to-day.
What is the bond for 1t binds us to pay the
State monthly $25, coo, and at the end OF the
lease to return the road in as good condition as
we found it That is all there is in it; that is
all our obligation. You have watched us for
eleven years If we had no security would our
past conduct justify you in the conclusion that
we would either betraY you or cheat YOU You
have the power, il we do not pay the rental
within twenty days after the end of each
month, to forfeit the lease and take back the
road with all its improvements.
do not believe there is any gentleman
among you who feels anxious TO do that. We
are to return it as good as we got it. There is
not much danger of our being able to return 1t
in as bad condition as we got it. We cannot
run it and do our present business IL we let it
run down as low as when we received it, There
Is no provision to pay us for betterments.
A Senator BY your construction of the act,
did the corporation come into existence till the
bond was executed?
Mr. Brown-The law says as soon as the
proposition is accepted and the names put up
m fla nIyfi min a hn-
comes a body corporate, etc. But we intend
to incur no liabilities, but will promptly pay
you the rental when due, and we intend to
return the road in better condition than we
found it. Some of us have a little character
We cannot afford to sacrifice by undertaking 70
cheat the State.
Mr.. Hunt-There is NOTHING in that lease act
that provides for payment OF hettermentS.
Mr.. Brown-No, nothing for betUeFments-
not a word in it. We have no doubt the State
viii desire on final settlement to deal justly
with us on that subject We apprehend no
misunderstanding about it. We want nothing
but justice.
Now, gentlemen, when we come down to the
truth-the only square, fair way or dealing
with this mattsr-I can confidently say that
we have acted honorably with the State, and
you have all the guarantees that any people
could ask. We took the road at time when
you were getting nothing for it. 1t was bring
ing you largely in debt. We have paid the
rental promptly; one-haf of the rental goes
TO the children of the State as part of the
educational fund. Under no political manage
ment do l suppose you would have done as
well as you have done. We made for the last
year what looks like a large income but scat
ter it back over the past, and it is not much as
an average annual income. And with the road
buiit, which you have chartered along our
side. it cannot paw so much towards the end
OF the lease. We are paying the income
bonds out of the net earnings. II you take the
time lost st the start, when we had no in
comes, and the chances for low business in
the active competition with the new line, at
the end of the lease, the average incomes will
not be large.
Mr. RankiR-How much will the new road
lessen your incomes?
Mr. Brown-Very largely. Take the article
of coal, for instance, from East Tennessee. |
Colonel Cole will get charge of that-all of it. |
But. as have said before. think the new road |
a great public benefit. The lessees will suffer |
more than anybody else viii from it. l think |
by the end Of the nine years. with Atlsnta's |
and ChattaDooga's growth. there will be a
good business still for the State Road. In that |
nine years the country viii build up. But you
have struck US very heavy blow. You may |
say, IF you think the State Road will be dam |
aged, why did you not go before the Legisla- |
ture and oppose the Cole charter" Ny reply |
is, we had no guaranty from the State in our |
contract that a competing line should not be /
built, and expected very little sympathy |
from the Legislature on proposition to reject |
the charter because it would iDjure the lessees.
In a matter where our contract did not protect
But to return one moment to the matter Of
the bond, or to the action Of the Central Mr.. |
Johnston was the agent for that company. He |
indorsed the bond. and the company had no.
tlce OF that fact. No steps were taken to TO
tify the executive or the public that they did
not hold themselves liable. Eleven years
have passed. they have constantly dealt with
US as q company OF lessees, and say they are
estopped from saying at this late day that they
were not liable
Dir. Wadley has stated, as no doubt he now
thinks, that the Central was not an indorser,
and therefore he, of course, does not think
there was a legal lease. Yet, st a later period
within the last two or three years-Mr. Wad-
ley bought majority of the whole stock in
this lease, and paid out in cash nearly six hun
dred thousand dollars for it. And when it did
not quite suit his purpose to hold it-for what
reason he explains for himself-and when he
did not control the road, he sold all the stock
but TIVE shares. Do you think if Mr.. Wadley
had understood at that time that the Central
was not liable on the bond. and that there was
no legal lease, that he would have paid nearly
S6oO.OO0 for majority of the stock Of this
company
Mr. Foster How much did he own?
Mr. Brown-There are twenty three shares
He bought, 1 think, eleven and fve-eighth
shares-one eighth Of share over half-a bare
ma ority, for which he paid 5000 a share in
cash down. and that would be, as you see,
nearly $500, 600.
Gentlemen, think know enough about the
people of Georgia to be able TO say very posi-
lively that your constituents do not require of !
you any interference with the lease of the State
Road. Neither you. nor any other person can
deny truthfully that the lessees have dealt
Justly and fairly with the State and
the people. and have complied in good faith
with their contract.
In the first section of the lease act. we have
an express guarantee against disturbance of |
this character, in the following sentence, which |
now quote: But the faith of the State il |
hereby pledged to said company that they shall |
IN no case, be disturbed by the authority OF the
state so long as they keep the contract on
their part and make the payments when due. -
Now, challenge you to show that we have In
lny instance failed to keep the contract on our
part or that we have in any instance failed to |
pay the rental whsn due. Then the faith ST the
State is solemnly pledged to US that neither
his committee, this Legislature. nor any other
tribunal. acting under the authority Of the
State of Georgia, shall disturbus
do not impEgn the motives Of any one, but
may justly say that there are restless spirits
who have never been satisfied with the lease of
he Western and Atlantic Railroad Some, for
he reason that they were not among the
esSees. probably and some for other reasons.
But the people have not sympathized with
heir discomfort.
Again, there are restless politicians in the
State, who would no doubt be glad to see the
road taken from the le-sees and thrown back
INTO political management. Doubtless their
interests might be subserved by it. Or there
may be those who would be glad to see the
present lease terminate, and see the road
thrown into the market for lease again. or for
sale. Possibly some might be able to profit by
this state of things. But deny taat YOU have
any power II you had the disposition. which |
do not believe to interfere with the vested |
rights of this company for the qualification of |
any such persons, or to enable any man, or set
Of men, to subserve their own interests by
throwing the road back on the hands of the |
State. II it should be attempted l shall ap-
peal confidently to the people of the State, and |
have fear of any unfsvorable verdict In |
the last resort an incorruptble judiciary would |
administer the law aLd protect our rights
Litigation. however, may be the thing most
ardently desired by some gentlemen, who may
be at the bottom OF this movement. There |
are distinguished lawyers in Georgia who have |
already drawn large sums out of the Treasury
of the State as fees for prosecuting or perse-
cutting railroad companies under the tax act,
and probably other acts, who have attempted
to exact about twice as much from the rail-
road companies as they knew they were liable
to pay. And on their refusal to do so, they
have carried the cases to the courts, and have
obtained large fees for attending to the States
interest And in majority of the cases they
have either lost the case, or received by way
of compromise or otherwise, about the same |
amount that the companies were originally |
willing to pay.
These patriotic gentlemen. have no doubt
the lease void and direct the Attorney General |
to commence proceedings to forfeit the char
ter. There would be good fees in il and fat
job for some very able and worthy attorneys |
The result would not be doubtful in the courts |
Our rights are impregnable, and cannot be |
successfully assailed. The effort TO do so |
has from time to time resulted in signal |
failure.
If litigation can be had, the people will have
to pay the heavy attorneys fees the same as
they would have done il there had been good