The morning news., 1891-10-11
MORE WAR ON THE LEASE
AN INVESTIGATING COMMITTEE
DECLARES TT ILLEGAL.

A Clause in the Charter of the Gem
tral Railroad Prohibiting It From
Leasing Itself TO Any Other Road
The Lease of Other Roads by the
Central Legal.
ATLANTA, Ga. Oct. 10.-The report OF
the railroad investigating committee will
be- made to the II ouse on Monday. Mr..
Berner or the committee made this an
nouncement this morning. 1t would have
been made to-day but for the fact that the
printer made some errors and omissions in
the report which Mr.. Berner said it was
necessary 60 correct before the committee's
work could be placed before the House.
Two leases are charged to be contrary to
the competition clause OF the constitution
by the committee and ene in violation OF
the charter privilege.
IN VIOLATION OF THE CHARTER
The report claims that the lease Of the
Central by the Georgia Pacific and that Of
the Macon and Western by the Central and
Richmond and Danville are In violation of
| the constitution in 80 far as the competitive
clause is concerned. According to the COM
| mitree the charter OF tho Central road does
| not permit of its being leased, aud there
| fore the lease to the Georgia Pacific is a
| violation. The point is made that the Gem
| tral might have leased the Georgia Pacific,
but not vice versa.
THE CENTRAL ALLOWED TO LEASE.
The act Of the general sembIy of Jan.
| %, 1852 is quoted. This aoS expressly au-
| thorizes the Central Railroad and Banking
| Company OF Georgia TO lease and operate
| the Augusta and Waynesboro railroad, the
| Milledgeville and Gordon railroad, the Ea-
1 fnntaf, hra nh railroad aud oh 9th
roads as at that time connected with, or
| might thereafter connect with said Central
| railroad. This express statute dIsposes of all
| questions as to the legality OF the leases Of
| these roads by the Central Railroad and
| Banking Company, Tho joint ownership
Of the lease Of the Georgia road by the
| Central and Louisville and Nashville is also
| declared beyond question Of illegality. Ii
is granted that the Georgia Pacific had
power under its charter to lease, but argu-
ment and court decisions are quoted al
length TO establish the fact that the Central
did not have authority to lease itself. That
is where the rub comes in.
THE ACT OF CONSOLIDATION.
The act of consolidation between the Gem
trail and Macon and Western is held not to
vest in the Central the right which the
Macon and Western had TO farm itself out,
and further on these words are used: "In
its opinion IL the Central railroad desires to
exercise the power of leasing other roads,
which it Is prohibited from 80 dong by its
| charter but which could be done under
| the general laws of the state, it should
! place itaeh Hereunder, and submit to all
| the burdens Of government now applicable
| 10 other railroads.
| LEASE OF THE MACON AND NORTHERN
| In condemning the lease OF the Macon
and Nor thern to the Terminal as unconsti-
| tutional. the report says: "Ths said Macon
| and Northern connects by short hne the
cities of Athens and Macon. Prior to its
construction said cities were connected by
the Richmond and Danville railroad
and the Central road by way
Of Atlanta and by the Georgia
railroad by the way of Camak. These lines
were competing lines with the Macon and
Northern from Macon to Athens. The two
former roads are controlled by the Termi.
nal system, and the Ceutral owns a one-
half interest in the Georgia road. By the
lease of the Macon and Northern,
| the Terminal system wholly or
partially controls all the lines
between Macon and Athens, and this de-
stroys composition, or has 1t IN its power to
do 80 unless restrained by law from so doing.
| Ii the report is accepted by the legislature
and measures taken to remedy the wrongs
| it sets out, the outlook for the Terminal is
not particularly encouraging.