The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-08-13
CAPT. BLUN'S LITTLE BILL
HE WANTS se,25o FOR SELLING
THE TYBEE ROAD.

The Directors Appoint Him Com
mittee Of One to Negotiate the Sale
of the Road 70 the Central, and be
Puts In Bill for Brokers Commits
sions, and Attaches $4,000 OF Sa-
vennah and Atlantic Bonds in the
Central Railroad Bank to Secure It
A difference has arisen between Capt
Henry Blum and the other bondholders Of
the Savannah and Atlantic railway, caused
by the presentation of a bill against the
railway company by Capt. Blum for Sd, 80,
which he claims is due him as commissions
for the recent sale of the Savannah and
At lantic railway TO the Central railroad
The question is a very interesting one, and
will hardly be settled outside of the courts.
Capt. Blun's bill has fixed wide gulf be
tween him and the other members Of the
former board Of directors of the railway.
and has aroused q good deal Of feeling on
both sides.
Capt Blum claims that the bondholders owe
him the amount he asks as his brokers'
commission for the sale Of the road. The
other members Of the board Of directors
and the bondholders say that the road was
not placed in the hands Of Capt Blum for
sale as broker, but that he was acting In
his capacity as a director and bondholder,
and that there was no intlmatlon
whatever, on his part, Of any intention TO
charge for his services.
A MORNING News reporter talked with
several bondholders yesterday, and was
given the history of the transaction in
brief
HISTORY OF THE DEAL
When the directors and bondholders con.
cluded that it was 10 their interest to dis
pose of the road, it was decided to offer TO
the Richmond Terminal or other railroad
corporations a controlling interest for the
the Endorsement of the S250,000 of first
mortgage per cent. bonds Of the
road, and further Endorsement of $4,000
of second mortgage bonds to be issued to
the bondholders to repay them for
expenditures upon the rolling stock, the
purchasers to take full charge of the road.
A resolution was presented by Capt. Blum
appointing himself committee of one TO
negotiate the sale and act for the company.
There was no refernce in the resolution TO a
commission, nor was any hing
said upon that subject in the
meeting. The directors and bondholders
say that it has always been plainly under
stood that no director was to receive any
remuneration for services rendered the
road. They say further that Capt. Blum
was given TO understand that no commission
would be paid.
THE NEGOTIATION WITH THE CENTRAL.
Capt. Blum opened negotiations with the
Central authorities upon the proposed basis |
but the Central refused to take simply |
controlling interest, not wanting TO buy |
any more railroads on those conditions |
Conferences continued for two or three |
weeks between President Alexander of the |
Central. and Capt. Blum and other |
directors OF the Savannah and Atlantic. |
The original proposition was dropped en- |
tlrely, aud after Capt. Blum had gone north |
an az cement was made between President |
Alexander and the Savannah and Atlantic |
directors, by which the Central was to re- |
ceive the entire stock Of the road aud take |
full charge Of 1t, becoming its real owners,
In return for an Endorsement of $3.50, 900 of |
3 per cent. bonds, and $50, 900 of a further |
issue.
A BOMB AMONG THE BONDHoLDERs.
Capt. Bluns bill for commissions dropped |
like bombshell among the bondhoders. |
1t was presented several days ago, but they |
Kept the matter quiet until yesterday. Find |
ing the directors of the Savannah and At |
lanuc unwilling to pay the commission, |
Capt. Blum endeavored TO collect it from |
the Central railroad, but President Alex |
ander told him that he got no commission
Tor bis services In negotiating the sale and |
saw no reason why the Central should pay |
Capt. Blum anything.
The Savannah and Atlantic had S23. 900 |
worth Of its last issue of bonds In the Cen
trail railroad bank, which had never been |
among the bondholders.
ATTACHED FOR COMMISSIONS.
Capt. Blum attached these for his COM |
When they we're notified of his |
action the other bondholders made an |
indemnity bond, securing Mr.. Cunningham, |
cashier, and took out the bonds. A portion |
were sold to pay some Indebtedness which |
the directors had contracted IL behalf of the |
road, and the remainder were held for dis |
tribution.
Capt. Blum will doubtless have something |
further to say of his position in the matter, |
and so will also Mr.. Herman Myers. |
AS it stands now the directors say most en- |
phatically that they will never pay Capt. |
Blum one cent of commissions on the sale of |
the road