The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-01-06
NOT AT ALL WORRIED.
THE CENTRAL PEOPLE NOT DIS
TURBED By Mr.. sPEYER'S SUIT.

Gen. Alexander Looks Upon it as An
Effort of Few Second-Series Bond
holders to Force the Central to Buy
Them Out-He Does Not Think the
Court VIII Grant the Final Injunc-
ton When the Facts Have Been
Brought Out.
The injunction suit Of Leo Speyer against
the Port Royal and Augusta Railroad Com
pany directly, but indirectly broadside
intended for the Central Railroad and
Banking Company. the details Of which
were published in Sundays MORNING
News, does not apparently disturb, in the
slightest degree, the serene temper Of the
president of the Central system.
To a MORNING News reporter last night,
Gen. Alexander said that be had not seen
the bill of particulars. He had been served
with the order to show cause, a court paper
of about page Of matter, and had referred
the case to counsel for the railroad COM
pany.
Gen. Alexander says that it is a matter
OF very little concern to him. The case, he
says, is just such an one as the Branch case,
which was settled, and the Summer
vile case, which is pending in
the state courts. He looks upon ali such
suits as an indirect effort Of the few bond
holders of the second series bonds Of the
Port Royal and Augusta Railroad Com
pany to try to dispose of their bonds to the
Central by forcing the company into a
litigation.
NO TROUBLE TO ANSWER THE BILL.
The president of the Central says that the
| Cen,ra Railroad Company will have no
| trouble to answer the allegations of the bill,
for ii amounts to allegations, and nothing
more, and he expresses the opinion that no
court " i'll grant final injunction after the
Central presents its case.
Gen. Alex ander denies that the Port
Royal and Augusta road has been run in
the interest of the Central railroad. On the
| contrary, he says, the Port Royal and Au-
gusta would long since have gone into
bankruptcy but for the fostering care Of the
Central, and it is now sustained by reason
Of the fact that the only feeders it has are
| either controlled by the Central or upon
| terms Of amity with it, and but for this
fact traffic that the Port Royal and Augusta
now enjoys would be diverted TO the South
Carolina railway, or go via Columbia to
Charleston by another line. The Central,
the Georgia railroad and the Port Royal
| and Western Carolina are feeders which
have kept the Port Royal and Augusta
from going to the wall.
Gen. Alexander says that it is silly to set
up the claim that the Central and the
| Georgia Railroad Company are Indifferent
as to the Port Royal and Augusta Railroad
Company, or that they do not want it to
| prosper, when, as a matter of fact the
Central owns about 100000 of the bonds of
| the Port Royal and Augusta, and one half
of S500,00 held by the Georgia Railfbad
Company, leaving only about 100000 OF
! the general mortgage income bonds in other
hands. He says that the Central, as can be
seen by these figures, is as much interested
in seeing the Port Royal and Augusta road
paying property as any other property of
the Central system.
KEPT UP BY THE CENTRAL.
The Port Royal and Augusta road, Gen.
| Alexander says, was taken under the foster
ing care of the Central when it was on the
eve of bankruptcy, being in arrears for
| taxes and with heavy floating debt, the
road out of repair, and lacking in equip
ments. Since that time new steel rails have
| been laid on all but about fifteen Of the liz
miles, and its equipments and betterments
| have been increased, the interest on the
| first mortgage bonds has been regularly
paid, $40, 900 has gone annually into sink
| ing fund to meet the payment on the first
|
fact that no interest has been paid on the
second series of bonds, such as are held by
| Mr.. Speyer. is that the interest is con-
tingent, and when the road is put in good
order and equipped, then it will begin tC
pay interest on the bonds of the second
| series.
That the Port Royal and Augusta road did
not 20 into the consolidation with the Port
| Roval and Western Carolina, the Augusta
| nd EY,avxrfIIa EaOrria
pany, and the Central Railroad Company
because of an opposition on the part of the
| Central, Gen. Alexander says, is untrue
| On the contrary, he says that the other
| bondholders have been hinderance, and
have always opposed everything that the
Central wanted done.
! Mr.. SPEYER'S CHARGES DENIED.
A blunt denial is made TO the allegation
that anything has been charged to the Port
| Royal and Augusta railroad which should
not have baen legitimately charged, and h(
denies with emphasis that sit has been de
| prived of any traffic that belonged to it
but, on the contrary. traffic has beer
directed to it which it could not possibly
have had except through the Georgia rail
roads friendAlneSs to the Central, as the
Georgia railroad could have given its traffic
to the South Carolina railway, a shorter
road TO Charleston than the Port Royal anC
| Augusta via \ eInassee."
| There NAV have been a technical illegal
! ity, Gen. Alexander says, in making the
general mortgage bonds prior lien to the
bonds of the second series, but the Central!
counsel says there was not, as the genera
mortgage boIsds were issued to paw take.
and flJatiug debts that were prior liens t.
the second series bonds; but if the cour
should hold tthas the second series bonds arr
prior lien to the general mortgage
bonds, then there would be due
| Mir. Speyer only about $500 or
his coupons which Gen. Alexander says
I'VE could tax > up and hold the coupons
which will be s,ood some day" The presi
dent of the Central remarked that the sui
will not in any way embarrass the Central
in operating the Port Royal and Augusta
roaI