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

lease. The new company Nds -
the Georgia; nobody denies that Is went sure
W. senator-Mr. Phinizy denies it.
Mr. Brnwn-No Mr.. Phinizy does not deny
IL He bubbles about it, il l may use the
term, But he does not say that they are not
liable. as l understand it. Mr.. Wadley says
he was willing TO join the Georgia Road IN 9
lease, or unite in guaranteeing TOT sa'is si.
tory company. Our company at that time
was certainly satisfactory to the Georgia
Road. 1t was the object or the two
roads that the State Road should De
run by a company without DISCRIMINATING MAJ ~
Il do think the Central ought to go on the
bond Of a company that will treat US ooth
properly" Now, the Georgia thought this
company did that, and II was nearly eleven
wears after the lease before the world was in
formed that Mr.. Wadley lid not think so.
He was willing TO indorse for company that
would give all the roads fair play. AS ours
was organized he could have no doubt we
would do it He does not now deny that We did
it, and he will not denyit. Then what was his
objection to our company, composed OF the
persons it was, aud representing the rallroad
interest it did He gives no reason Tor MS
objection in his evidence before you.
Mr. Wsdley's company has had daily COM
muncatiOn with the Western and Atlantic
Railroad Company for nearly eleven years We
have had settlements weekly or monthly, Gil
sorts of transactions together, and the world
has never been informed till nearly eleven
wears afterwards, that Mr.. Nadley did not APP
that Endorsement end Mr. Wadley comedies
that he or Mr. Johnston had the right to make
it when he approved the company. What
reasonable objection could he have to the
company? He gives none. l respectfully sub
nit that Mr. Wadley is estopped at this late
day from getting up and denying that he ap-
proved it,
A senator-Has there been any recognition
of the bond? Has that been brought to his
knowledge. as you know of There may have
been a recognition of the lease, without any
approval OF the ir dorsement.
Mr. Brown-I do not know that the bond has
been specially pressed upon his attention. He
certainly had notice Of the fact that Mr.. John
ston had signed the name of the company TO
the bond. as the fact was extensively published
in the newspapers at the time, and the lease
was a subject Of general discussion, and after
all this he gave no notice that he doubted that
his company was bound. We never doubted II
and never heard that he doubted it. We took
it for granted, of course, that he considered il
all right.
Again. it is very clear that there could not
have been valid lease at the time without a
bond with ample surety, because that was 8
very emphatic and important requirement OF
the statute IF Mr.. Wadley knew there was nc
bond. then he knew there was no valid lease
and he has been dealing with us for nearly
eleven years without disclosing that knowl
edge. Now l simply think Mr.. Wadley has for
gotten this transaction. He does not remem
Der all that he said and did at the time.
Mr.. William h. Johnston, of Macon, gentle
men, is known to many Of you. He is she
party who Endorsed. l do not suppose you
win doubt his word any more than Mr.. Wad
ley's. and you would not question his oatt
made at the time. He not only said. but he
swore that he had the authority. Here is 6
letter that he addressed to Governor Bul
lock when there wasesom rumor that the
company had agreed to indorse for the Seagc
company:
ATLANrA. December 26. 1s7O.-To HIS Erect
lsHcy Rufus b. Bullock, Governor Of Georgia
SRI am informed by rumor on the streets
that some number of persons mot known tC
mel have made TO your Excelency PROPOSE
ton TO lease the Western and Atlantic Railroad
and have rendered the Central Railroad and
Banking Company ag surety on the bond re
Quired by the act authorizing the lease.
feel it my duty to inform you that am the
accredited ageLt Of that company; that | have
Joined " it'll others in rendering his road as
surety for a company, in which all the railroad
interetts of the State are equally guarde1-a
result all think for the best interests OF the
State-6nd the Central Railroad will not be-
come security on the bond OF any other com
pany, and that any tender of that company as
surety for any persons seeking to lease the
road, other than those representing all the
roads equally, is without authority, Very re
W. B. JOHNSTON.
P. 81 will add that am also . director in
the Macon and Western Railroad Company,
premises, and the statements above are also
trus OF that company. W. B. JOHNSTON.
Now, in reference to the Southwestern while
l am on that point, for that is one Of our sure
ties. General Holt says:
To avoid mistakes, | take the liberty OF
informing you that am the President OF said
company. and have the authority to tender
said road as surety, and in the exercise OF that
authority have rendered it as such surety on
the bond Of company OF gained with view
of harmonizing the interest Of all the connect
ing roads, and thus promoting the general wei
fare of the public. No other person or per
10 hor TO uofA
curity nor viii that company tender itself for
use except for q company organized in harmo
ny with all the connecting roads, as above
mentioned. Very respectfully, your obedient
servant, WILLIAM S. Holt, President.
The Macon and Western Railroad Company
is also one OF our sureties, and | see in that
connection that Mr.. Wadley speaks of it as be
ing an integral part of the Central. l care not
whether it is or not Il understand it isl IL it
WAS surety on this bond before it was absorb
ed by the Central, that amalgamation or con-
sOlidation does not affect the suretyship or de-
stroy the States light to hold it as such. Capt.
A j. White was at that time President Of the
road. and he says:
The Board of Directors have authorized me
to indorse for such parties as | may be willing
to indorse for; and am willing to indorse for
q company which unites all the connecting
roads, harmonizing conflicting interests, and
promoting the general interests of the people
of the State. Respectfully, your Obedient ser
want, A. J. WHITE, President.
These are letters addressed to Governor Bull
lock on that subject Now, | come to a docu-
ment that is a little more solemn. The lease
act as you recollect, requires the sureties to
swear that they are worth certain amounts,
etc. Here is the affidavit. l will read it:
State of Georgia. County of Fulton.-In per
son came John p. King. President of the Geor-
gia Railroad and Banking Company Of Geor-
gia and who is authorized to act as agent for
said company: William B. Johnston, Director
for the Central Railroad and Banking Com
p4ny, AMI who is authorized to act as agent for
said company; William s. Holt, President of
| the Southwestern Railroad Company Of Geor-
gia and who is authorized to act as agent for
| said company; Andrew J. White, President of
| the Macon and Western Railroad Com
pany of said State, and who is author
lied to act as agent for said company
| and said John p. King, President, and author
| lied to act as agent. also for the Atlanta and
| West Point Railroad Company of said State,
and Edmund W. Cole, President Of the Nash
| vile and Chattanooga Railroad Company Of
| the State Of Tennessee, who, all being duly
| sworn, do depose ard say, that the said rail
| road companies represented by them. respec-
| lively, have consented to become securities for
the Western and Atlantic Railroad Company. -
| on the bond to be given by them in the lease of
| the Western and Atlantic Railroad, according
| to the provisions Of an act Of the Legislature
| of said State Of Georgia. approved on the 24th
| day Of October, 1870, and that said companies
"are worth at least two millions of dollars over
| all and every liability" and are worth in the
aggregate at least eight millions of dollars, "
| IN SAlQ STATE OF OeOfSlHs ana Win Inc OLler
| railroad companies in and out of the State
| which propose to become sureties on sal bond.
| are in fact worth over sixteen millions dollars
| clear Of all liabilities. JOHN 2. KING,
W. B. JOHNSTON,
WIN s. HoLT,
| A J. WHITE
wv COLE.
Sworn to and subscribed before me. this 9th
| day of De cember, 1870 81. K Mckay,
Judge Supreme Court.
| take IL for granted that these pentle man
| understood the law of their respective char
ter at the time; they knew the action that had
| been taken; they were men of high character
and would not commit PERJURY by swearing
| positively that their companies had author.
| lied them to indorSe for this company If they
| had not done 50. William B. Johnston swears
| he is the authorized agent Of the Central Rail
| road Company, and that said company has
| consented to become surety for the Western
| and Atlantic Railroad Company. If you take
| Mr. Wadlsy's recollection of the matter as
| correct, you must say that hr. Johnston has
| been guilty of deliberate and willful false
| swearing.
| Next comes in the bond. The lease act had
| msde it the duty of the Governor to lease the
| road and take the bond II had therefore. left
| it with the Governor to decide on the propriety
| OF taking certain railroad companies az sure
ties. or in other words. to decide whether
| these companies bad the right to indorse, and
whether they were legally indorsing, and were
| good and solvent Sureties. / respectfully sub
| NIT, when he had adjudcated that question Il
must stand till reversed by the courts and Won
| must presume he did right till you can show
| the contrary. The bond il as follows:
| State of Georgta-Be it known that the IN
/ dersigned. western and Atlantic Railroad
| Company as principal, which is composed OF
| Hill, Alexander Fl. Stephens, Andrew J. White
| Edmund W. Cole, William B. Johnston
| William S. Holt, Charles A. Nutting
/ Tbon,os a Scott WilIfer1 n Vo.ars To6r g