The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-12-31
ACCLAIM FOR 100000
THE RICHMOND AND DAN
WLLE'S DEMANDS.
Its Refusal to Honor the Gen.
trails Drafts.


In Progress Here in Spite Of the
Hitch in New York-The Southwest
ern Dividends Due To-day and a
Probability of a Default in Their
Payment-rhe Savannah Directors
Of the Central. in Conference All of
Yesterday-Gen. Alexsndef Explains
the Situation.
The Richmond and Danville railroad has
refused to honor the dfafts of the Central
railroad for the payment Of the Centgal and
Southwestern dividends and other indebt>
.edness, and has presented a bill for $500 900
expended for various purposes since as
Stunning control Of the Central which 1t de-
mands the Central shall pay. Unless it is
paid the money for dividends will be with
held. 1t demands further that it shall
be intrusted with oertainpf the securities
of the Central railroad, which are retained
in its custody by the terms OF the lease as
security for the payment OF the demand
made upon it.
FINALLY BROUGHT OUT.
The matter developed yesterday, though
1t has been an issue between the Central
railroad and the Richmond and DanvilIe
for several days. A special meeting Of the
directors of the Central railroad was held in
Savannah last week to consider
this matter. The directors did not
seem to be disturbed over It. however, and
1t was given out that the meesing was
merely to consider some accounts between
the Central and the Georgia Pacific, which
had not been disposed of by the lease, and
that there was nothing of special interest in
the nesting. 4 resolution was passed
authorizing Gen. Alexander to settle the &C.
counts
The directors could hardly have besn ac-
quainted with the size Of the Richmond and
DanviIle's little account wh1n they so read
ny authorized Gen. Alexander to settle it.
PRESENTED THE BILL IN NEW YORK
When Gen. Alexander reached New York
he was surprised with bill for $500, 900.
The bill was not itemized and he
requested that the items be rem
dered separately and that he be given
time to consider 1t. The alternative held
out by the Richmond and Danville for nom
payment of the bill was the refusal TO honor
any drafts upon it by the Central for the
payment Of dividends and other indebted
ness provided for in the lease.
The Savannah stockholders were fortu-
nate, in that the dividends payable here
were received before the matter came to a
head, ending in the refusal OF the Richmond
aud Danville to honor the Centrars drafts.
II is hardly probable that the Richmond
and Danville would have been so consider
ate as to make an exception in favor Of the
Savannah stockholders
SAVANNAH IN LUCK THIS TIME.
The money for the dividends payable
here was received day or two in advance
and payments were begun the day after
Christmas. About three-fourths Of the
amongt has been paid out already and the
rest is being paid out rapidly.
Quite a furry was created on the street
yesterday morning by the report that the
had win dixfda de
There was rush Of stookhold-
ersa to the bank, where they were
y much relieved to find that their
scrip was readily cashed. All sorts Of ru-
mOrs were ahoat, nevertheless, and the re.
port YVES revived that the lease would be
broken.
President Alexander and the local direc-
tors have held several informal meetings
recently. They were in conference the
greater part of yesterday with H. G. Cum
bingham, ESQ.,, counsel for the road. Their
deliberations were serious. and considerable
telegraphing was done with New York.
Uriah b. Harold Of Americus was also
present at the meeting.
GEN. ALEXANDER EXPLAINS.
Gen. Alexanner was seen by MORNING
NEWS reporter late in the afternoon, and in
answer to questions with regard to rurnors
about the situation, he saidi
"a difference has arisen between the
Central and the Danville in reference to 40
counts between the companies. By the
terms OF the lease the lessee assumed all
running accounts of operation, such as pay
rolls, bills for crossties, fuel. supplies.
freight and ticket balances, etc, receiv.
Ing oil cash and supplies on hand
and balances due. On Dec. "a I
was handed in New York Statements
claiming that $500, 600 had been paid on
their accounts and was told that the Dan
Vile considered them ohargeable to U.S.
denied this and appealed to the lease, but as
the accounts were not itemizsd l offered TO
take them up and go over them IN detail
and to accept anything chargeable under
the lease or In equity. l was asked IL l
would put securities In escrow during the
investigation and / agreed to do
90. was then verbally au-
thorized to draw for money
TO pay all January rentals aud interest
Since then, however, the Danville company
has suspended payment of these drafts and
demanded that in advance of any adjust
ment Of the disputed account that l should
turn over the security which l offered to
place in escrow to that company.
APPEALED FOB ARBITRATION.
81 have declined to do this on business
principles and under the terms of
the lease, and under its terms also
have appealed for an immediate arhi-
tratton OF the questions between US.
] have no doubt that the arbitration
will proceed Immediately and that the
whole matter will be speedily adjusted.
There is no difference between us except
the custody Of the securities pending settle
ment OF account by arbitration. | offer TO
put them in escrow in the hands Of a trust
company. They ask to hold and use them
themselves. The issue is 50 simple on BUSH
ness pEfnoiples that think there is really
some misunderstanding in New York which
Only needs to be cleared up to have matters
= adjusted at once. They have the money to
!. pay, but ask our securities as a matter OF
principle. Icontend that the principle is
IN my favor"
THE SOUTHWESTERN DIVIDEND.
Gen. Alexander said the Richmond and
Danvile had refused to cash the draft for
the Southwestern dividends, together with
the other Indebtedness. The Southwestern
dividends are due in December and to-day
is tbs last day upon which they can be paid
by the terms of the existing contracts. IN
less the Richmond and Danville agrees to
the payment Of the dividends to-day 1t will
be IN default
Gen. Alexander said he hoped the Rich
mond and Dauville will reconsider It's posi-
ton and pay the dividends to-day He did