The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-08-04
-C0NTR0L OF A RAILROAD.
PROTEST OF THE MEMPHIS AND
CHARELsToN's MINORITY.

President McGhee Notified That They
Stand Ready to Make a Lease of the
Road Guaranteeing Per Cent. In
terest-A Threat to Carry the Matter
Into the Courts.
NEW YORK. Aug. 3.-Interest in the af-
fairs of the Memphis and Charleston rail-
road has been revived by the recent tactics
OF the minority stockholders to wrest them
from the East Tennessee, Virginia and
Georgia road, which latter company con-
trols the former through the ownership of
majority Of the stock. A rather spicy
correspondence has just taken place be-
tween committee representing the minor
lty OF the Memphis and Charleston stock.
holders aud Col. c. NJ. McGhee, PRESIDENT
OF the Memphis and Charleston.
LETTER TO M'GHEE
The committee addressed letter on july
20 to President NlcGhee and his directors.
advising those managers that the Memphis
ana Little Rock railroad and the Chatta-
nooRa, Rome and Columbus railroad were
prepared and desired to lease the Memphis
and Charleston at a guaranteed rental of g
per cent. per anuum upon its capital stock.
Inc letter further goes on TO cali Presidents
Mcthee's attention to the fact that the
East tennessee, Virginia and Georgia Conn
pany has had control of the Memphis and
Charleston for fifteen years without making
any return to tho stockholders in the nature
OF dividends, and that this long period of
uhprontaole management Is sufficient to
destroy hope Of improvement in the future,
REMINDED OF HIS DUTIES.
Inc committee then reminds President
Mcdnee and his directors Of their duty as
managers of the property and suggests the
great responsibility resting upon them per-
sonally to facilitate in every possible wav
the proposed programme, which is devised
Tor the protection of "the sacred rights of
the minority stockholders. The letter con-
cludes with an urgent request to President
McGhee to convene his board of directors
without delayto consider the proposed lease
and determine whether or not they will
take such measures as will be necessary to
effect it.
MGHEE's REPLY SARCASTIC.
President McGhee's replies under date of
Aug. is favored with considerable sar-
casm. tie thanks the committee for their.
orouble to point out to him aad his associates
thoir duty in the management of the Mem
PMS and Charleston, and suggests that IL
might be well for the committee to secure
the forms OF lease under which it is proposed
TO dispose of the road, and also TO ascertain
whether or not under the charters of the
two roads proposing to make the lease they
have any right TO do so.
THE CONCLUDING PARAGRAPH.
President McGhee's letter concludes with
this paragraph: Impressed with the belief
that have before, to some extent, aided in
saving the Memphis and Charleston Rail-
road Company from bankruptcy, l can
only say that it will afford me great pleas
ure to do anything can to aid in making
its stock pay a dividend" The minority
stockholders seem to be very determined in
this matter, and declare that they mean to
fight. They insist that no court of Justice
on earth will sustain continuance of the
East Tenne sec control Of the Memphis aud
charleston without any return to the mi-
norlty stockholders, while responsible par
ties are ready and willing to rent the road
at a guarantee of per cent. upon its
capital stock.