Savannah morning news. [volume] (Savannah) 1868-1887, 1886-12-21

obligation to pay to the railroad company
a certain part of its net earnings over
and above $l50,000 tor sinking and re-
served fund sand additions to property.
1t was not bond In any sense OF That
word; nor was it proposed to distribute
1t among stockholders.
quote from the answer of the Central
railroad, signed w. G.. Raoul, Vice
President:
This defendant denies that it is true,
as stated In complainants' bill, that 1t ls
the purpose or intention OF this defendant
to divide said certificate OF interest or to
require or request said Ocean Steamship
Company SO to do or to assist in any man
ner to have such certificate so divided
pass into the possession of any other per-
sons or corporations or into circulation
beyond the control of this defendant, but
on the contrary il is the settled pur-
pose OF this defendant not to take or
authorize any action whatever that would
produce such results"
1t is sometimes stated, to make primR
facEe case against the proposed execution
OF this obligation of the Ocean Steamship
Company, that 1t was pronounced Illegal
DV the court. That is true as far as 1t
goes, but it will not 20 very far, with
those familiar with the circumstances at
the time, against the fact it was pro-
nounced legal by counsel of the company.
Fortunately tor the court the counsel
never got it before the supreme Court.
AS 10 what really was intended, and there
is no use in threshing over Old straw. out
merely to nail falsehoods maliciously cir
culated about it, quote from letter OF
mine ia the SAVANNAH MORNING NEWS
about Feb. %, 1882:
"fhis certificate of interest is practi-
cally nothing more than q regulation OF
the Ocean Steamship Company that the
tlrst $4,000 net W hieh it shall earn each
year shall be applied to reserve fund.
and any excess above that shall not be
applied to the reserve fund but go into
the Central railroad treasury.
"The same thing could have been done
by mere resolution of the directors, but
! a resolution would not give the same con-
| fidence to stockholders as to permapence
OF the policy as signed and sealed in
strument. Moreover, this instrument or
| certificate takes Its place among the
assets of the Central railroad and adds
| that much to its general credit which
| mere resolution could not do"
Next"Memorv" saws tDat my record
in the past poInts to financial rum of the
Central In the future. But he stops here,
not from hesitation to cay anything for
which he could get the slightest founda-
ZION, but for utter lack OF fact upon
which 10 base word.
The first railroad OF which l bad the
financial management was the Western
of Alabama. 1t was 90 satisfactory to
all concerned that / was promoted to the
Georgia.
Its stock was at 6S when took it in 1878.
In 1880 gave up the Presidency and went
to the Louisville and Nashville as Vice
President. Georgia stock was then selling
at 81. Col. PhinIzy became President in
my place, but remained as Vice President
under him for year. During the year
he made the admirable lease of the Geor-
gia, which has made it's stock worth
| nearly 200. The credit Of the lease be-
longs to him, but his being able to make
it shows that my management instead OF
| wrecking the road had made it's real value
appreciated.
My duties on the Louisville and Nash
vile were confined TO the management of
| its physical and traffic departments. Ny
office was in Louisville and the President
| and Board of Directors in New York
managed it's finances. They were well
managed in some respects and poorly in
others, but was responsible for neither.
| la 1882 returned to the Central, but held
the office only three months. The stock
was at So at Mr.. W adley's death in Au-
gust. 1t was 10 wheE MIR. Raoul an
| nounced contest in November. That
com pletes my record as financial man.
ager of railroads.
| l have already told the facts OF my sug-
gestion concerning Central railroad
| finances adopted by Mr.. Wadley in 1881.
l made a similar suggestion TO friend.
a director on the Atlanta and West Point
railroad, who asked me to advise him
about selling large amount of stock at
| 140. l told him not to sell, as it was worth
10 to 200, and showed him how. He de-
cided to sell part of his holding and keep
! the balance.
took what he offered for sale and divid-
! ed 1t with two friends. l made no secret
| of 1t, and never bought another share OF
| the stock from any one or had any other
| int rest in any.
| Ny plan was adopted by he board of the
Atlanta and West Point, and it's stock,
which had never before been worth 140 in
open market, has never since, believe,
been worth less then $50, and is TO-DAY
| with its debentures worth about 30.
That is now the whole Of my record as
"railroad wrecker and speculator.2 |
offer 1t 10 brand as falseb0ods the malel-
Gus insinuations with which this ffghtis
being conducted on the part of some OF
| nv opp0nents-not of all. s.-.
There is no lack OF ground for insinua-
tions on my part il chose to indulge in
them. But i expressly disclaim any In
! situation against the integrity of any
! charge against them is in facts and fig
ures bearing directly and solely on this
present contest. Ii either facts or figures
are wrong will be glad 10 stand COR
rected and apologize, | assert that the
| facts and figures condemn their manage
ment as vitality inefficient, from the stock
holders point Of view, and their high.
handed and unfair methods to control the
election are the highest crimes trustee
| can commit.
And will never drop the issue with
them. Stockholders under the influences
! of social and business relations NAV par
don such conduct, but those who regard
the value OF their stock will punish IT as
| it deserves when 1t is understood.
AS to charges that my MANAGEMENT will
be inimcal to the interests OF any stock.
holder, or OF any city or town upon the
! line of the road, they are not only false
but stupid, and ! have denied them re-
peatedly. | and my friends will have our
money in the stock. If that is not a guar
antee OF good faith no guarantee can be
given. Respectfully,
e. 7. ALEXANDER.