The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-10-18

have conducted such business speculations
with like results, and was it to be expected
in such case that they would give their
talent, their energy and the use Of their
capital to the state of Georgia for nothing,
aud at the same time have bond hanging
over them for s., 000, 600 for the faithful
compliance with the contrac. out of
which they did not expect to make
anything?
The true question is not what we have
made, whether we have made millions, or
whether we have not made a dollar. The
real question is, have we complied with the
contract on our part as far as we have
gone, and are we ready to comply with it
and do we offer to comply with it in good
faith the balance of the period of the lease!
l say we have complied with it literally
and faithfully for nearly nineteen years of
the lease, and that the offer we have made
is a fair one as TO our further compliance.
which we are ready at any time to carry
into operation.
Our highest ambition has been to deal
justly and fairly with all who patronized
our line, to pay our rental promptly, and at
the end of the lease TO comply strictly with
the contract to turn the road over to the
state in as good condition as we received it.
With this we shall be satisfied; with less
we shall not be- With this the state and
the representatives ought to be satisfied,
and | trust they will be.
But we are asked what is our claim
against the state of Georgia for the i'm
prOvements made in the condition of the
Western and Atlantic railroad during the
period of the lease.
While we may not be permitted to go
into the courts to set up our rights to the
full extent of the improvements we have
made, and may not be legally entitled to
pay for all the betterments placed upon the
road, we are certainly entitled in equity
and in natural justice to be paid by the
state of Georgia the difference between the
condition of the road at the time it was
turned over to the lessees and its condition
at the time when turned back by the lessees
to the state.
What is that differencea We estimate that
it is more than 81 100000; but we are
willing in the settlement of the claim to
take less than that.
The last legislature of this state before
the present one authorized and directed the
governor To appoint three commissioners to
look into and carefully examine the condi-
ton of the Western and Atlantic railroad
with its rolling stock, appurtenances, etc.
The lesseeS were not invited to take part in
| the appointment, nor were they, SO far as
know, in any way consulted by the execu-
tive In making the appointment. Three
honorable, Intelligent and trustworthy gen.
| tlemen we're appointed by the governor,
one of whom, Judge William NJ. Reese,
had been our most formidable and our most
| active opponent IN the contest at the early
period before the legislature in reference
| to the lease.
This commission appointed by the gov
ernor without consulting us took up the
| whole question, and with a great deal of
industry and research went to the bottom
of it. They made up an official report,
which has been published by authority of
the legislature, by which it appears that the
road is improved in every department, and
| they have made an estimate of the value OF
such improvements in each department and
| of the amount that such improvements have
increased the value of the property. BY refer
ence to the report, page 81, it will be seen
| that the total amount of betterments by the
lessees of the Western and Atlantic railroad
is $750,SS9 IA; in other words, the lessees
if they were to turn over The road to
morrow to the state with all its rolling
| stock and appurtenances would, according
| to their estimate, turn it over in a better
condition by $75OOOO than 1t was when
they received it, or in other words, the
state would get $780, 900 more from the
| lessees than her contract entities her to. II
would bs virtually taking from the pockets
| of the lessees that amount of their money
and placing it in the treasury Of the state
| of Georgia for the use of the people OF the
| state
| We do not even admit that this is Z cor
rect estimate. AS have already said, We
estimate the betterments at more thar
| 81 100000. Take as al illustration
the commissioners appointed by the gov
ernor estimated the value of the engines
which we received from the state and the
| value of the engines now upon the road
and they decided that the difference would
| be 1856. 100; that is the engines we now
| have are worth that amount more than the
| engines we received. But am informed
that in making up this estimate three en-
gines, which we're in the shops being re-
| paired and which were sooa afterwards
| turned out in splendid order, large and val
liable. were by mistake entirely omitted in
making up this estimate.
| There are probably many other such
| omissions. So far as we could learn they
were not generally omissions in favor OF
| the lessees, but omissions in favor of the
state. have no question about the motives
of the commissioners; they did exactly
what they believed to be right; but we
| differ with them as to the amount of bet
terments by about $3.50, 900.
Again, it is fact or principle of law
known | presume not only to the legal pro-
| fession of the state, but to all the intelli-
| gent citizens of the state, that in the case
/ of lease or renting of property the lessor
| and not the lessee pays the taxes unless
| there is some special contract to the con-
trary. This rule is as nearly universal |
suppose as one can be.
Some time after the lessees took charge
Of the road taxes were assessed on that part
of the road and its rolling stock which be-
longed in the state of Tennessee, and when
we called upon the governor of Georgia to
pay the taxes he declined to do So mainly
because there was no appropriation for that
purpose. From year to year the amount of
the taxes has been increased, and the state
still refuses to pay. 1t could not be fairly
insisted that the refusal was put upon the
ground that the state wo1 not liable.
In the lease act there is provision that
the company of lessees shall be subject to
the same public burdens as the Georgia Rail-
road and Banking Company and the Cen
trail Railroad and Banking Company. Under
a provision in the charter of each Of these
companies it was ruled by our supreme court
and, believe, by the supreme court Of the
United States, that the companies could
only be taxed one-half of l per cent. on
their net incomes; and when the question
went before the supreme court Of Georgia,
it ruled that the Western and Atlantic
Railroad Company, having contract with
the state to be subject to the same public
burdens as the companies already men,
toned, was liable to pay the state as tax
one-half of per cent. upon its net income,
but no more. That being the solemn ruling
of the supreme court of Georgia. there was
no pretext for insisting that we were bound
to pay one-half of 1 per cent. upon our
i Al