Savannah morning news. [volume] (Savannah) 1868-1887, 1886-12-21
A FEWFACTSFOR MEMORY
ONE HAD BETTER BE RIGHT
BEFORE GOING AHEAD.

oouofoh Aic4hHocT oothu
Railroad History and States What He
| Advised and " n at He Did Not Advise
Respecting Centrars Afairs-Fscts
Respecting the Issue of CentraPs De-
bentures.
NEW YORK CITY, Dec. 1S.-E Editor
Morning NeooS: ask the use OF your COL
umns to reply to a tissue of false state
ments and equally false lnsinuations by
your anonymous correspondent "Mem-
ory," In issue Of Dec. IA. have already
denied so many such that l had hoped
that | was nearly through with all that
either ignorance could conceive or ill-will
suggest. But "Memory" has ascribed to
me views which l do not hold and acts
which never committed, mixed in with
groundless insnuations.
First, be ascribes to me the issuance OF
the 40 per cent. debenture dividend In
1881. l was not director in 1881, and
hence could have had no official connec-
ton with 1t whatever. 1t Is true that
was stakeholder, and that 1 did suggest
it to Mr.. Wadley. He adopted the sug-
gestion and warmly indorsed the action
in mis- next report (l8Sl, pages and 9)
which answers in advance and most ell
fectually every word OF criticism wbich
Memory" now offers. Mr.. Wadley's
worst enemy will not accuse him of hav-
ing been q man of wax. But Mr.. w adlev
recommended at first 10 his board that
the dividend shonld only be 80 per cent.
Among the votes which overruled him
was Capt. RaOuFs, then Vice President.
About the single correct and fair state
ment of fact in "Memory's" article is
that to this day have never repented my
share in the transaction. Events have
justified it. Briefly, its history was this:
Early in 1880 Mr.. Wadley had tried to
| lease the Central at 6 per cent. in per-
petuity to the Nashville and Chattanooga,
the lease fell through. That set me to
looking closely into the value OF the
| property, which none of its annual
| reports had ever made clear, nor have
those Of the present management
since. 1 was surprised to find
iT worth fully $50 at time
when it was selling below so and when
| Mr.. Wadley openly said 1t was not worth
hat, and refused to lend money upon it
| in the bank at any price. L made no
secret OF my conclusions, but talked to
MIR. Wadley and his board about IL, and
as result the dividend was declared
as above stated. The stock went
| above 100 before the dividend,
and remained above 100. dividend off.
| held on to their stock and got the full ben
| eft OF the rise. Those who did not sold
| out at whist seemed, in their JUDGMENTS,
| satisfactory prices, | profited myself by
the rise on only few hundred shai es, but
! my suggestion was worth about six mil
| lions OF dollars to Georgia Central stock
| holders. Now If this added value of the
stock had turned out not to be a perma-
| nent value, | would admit that my policy
was of doubtful benefit. But the stock is
selling to-day at 125 and the debentures
at par, or 165 in all.
But "MemOry" would condemn me and
my policy together. because, mean while,
the stock has sold down to 80. He adds
| insult to Injury, He holds me RESPONSE
bic for the sins of the present manage
ment. W hen they got cheap possession
OF this valuable property by the invest
ment of $42 800 in votes which could
0e purchased, it fell again into hands
! that did not appreciate it's value, or
know now to make the stockholders
themselves appreciate it and hold on TO
1t. They claimed truly to repre-
sent "the old policy" and TO be ''con-
sentative" if conservatism means TO buy
the management OF good road cheap and
to keep it for yourself; TO keep stock.
| holders in ignorance of what property
| they own and what it earns from month
to month; to advise banks not to lend
money upon the stock; to get votes upon
an ambiguous request, and to prevent
fair election by illegally refusing stock
holders access to the list.
It seems to be popular impression that
a railroad manager is all that can be de-
| sired who simply controls successfully its
physical operations. That is, indeed, an
important part OF IL. but it Is not all, as
Central stockholders know by bitter cx-
perience. Memory himself. tells of
the poor woman sold out at 40. That was
under MIR. Wadley's administration. The
present one has sacrificed none below so.
A competent financial management will
keep both dividends and price OF stock
from extreme fluctuations. Look at the
fluctuations OF Central and judge of it's
management. No man can deny that its
stockholders have been simply slaugh-
tered.
memory" mildly admits that the d.
rectors were 'despondent" last summer
and good naturedly excuses them for
"underrating the recuperating power"
of the road. l hope those who were sold
| out from 80 to par will also excuse them
| for IL they do not really believe the can
| recover damages from members OF the
board individually for the losses they
Incurred. "Memory" says 'the blue
views OF these gentlemen took no practical
| shape"
~.
When the long -suGering stockholders, at
whose expense the Central railroad man.
agemenc had come to be regarded as
family heirloom, first began 10 talk OF
making fight last summer. the stock be-
gan to quicken. Under even the remote
idea Of any ones daring to attack a man
agement which had eDtrenched itself SO
unscrupulously it rose above 70,
RumOTs OF contest went abroad and
persons began to buy stock who we're sup
posed to be unfavorable to the present
management. The banks In Savannah
lent these persons money on the stock,
which of course enabled them 10 buy. IL
Will not be denied, think, that a direc-
tor visited Savannah banks at that time
and advised them not to lend money upon
the stock over 70; that it was
not worth 1t. 1t was gratuitous
advice by q trustee of the prop
crty which ia an exceedingly "practical
snape," and doubtless OF most Injurious
eject upon many stockholders who sold.
Finding that such measures could not
stop the buying, and the price going
above par, the board from heing bears at
rs turn bulls at 125 and try TO stop stovk-