The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-01-07
MORE TALK OF CENTRAL.
NO APPLICATION FOR a RECEIVER
MADE YET

for the Calhouns' Rumored Move in
That Direction - Gen. Alexander
TALKS on the Lsase-He Repeats His
Opinion That it Would be Unwise to
Break 1.-THE Terminal People
LaDorinR Under q Mistaken impress
sion as to the Election Of the Gen.
trails Directors
There is a belief that suit 10 dissolve the
lease will shortly be entered at Savannah
by Garrard g. Meldrim, counsel for the
Calhouns at Savannah. or who are gener-
ally considered 30, in the names Of the nil
nority stockholders. whom they represent.
No suit was entered yesterday, as II was ru-
mored there would be. Col Garrard was
asked what foundation there is for the rumor.
He declined TO say anything except that no
suit has been entered. He would give no
animation of whether there is any proba-
bility of a suit being entered or not.
Gen. Alexander was seen about the mat
ter but he had no Information
Several communications have reached
| the MORNING NEWS Office from Central
security holders who reside In the country
advising that the lease be broken. Would
It be to the interest Of stock and other Sc
curity holders 70 have it broken, now that
|
OF the Terminal, and, therefore, of the Cen
tral" he was asked.
| I'm my opinion every business man who
is capable OF forming any judgment upon
the bject, and who has looked into the situa-
ton, has agreed with me that the lease is
mutually advantageous to both roads and
that it would be misfortune to both roads
to have it broken, as well as to the state and
the cities on the line. / can't set myself up
as infailible IN Judgment, but / would risk
tue decision with any jury of Intelligent
| men who would examine the matter
Are Messrs. Thomas and Brice unfavor-
| able to the lease, and is it not likely that
they would not oppose an effort to break
itp
II do not know their individual opinion
on the subject, nor do think they have
formed or expressed any opinions on it."
THE BRICE-THoMAs INTEREST.
"Is not the lease antagonistic to the
| Thomas Brice interest in the East Tennessee.
| Virginia and Georgia roadF'
IL am at a loss TO see how or where it is
antagonistic to them. As the Central road
is here. the whole question resolves itself into
! whether its independent operation or it's
operation in connection with the Danville,
Is most favorable TO their interests. To my
mind its operation in connection with the
| Danvllle seems better for all concerned"
Have the Messrs. Calhoun any pecuni-
airy interest whatever in the Central, so far
as you knowp
Il have no information on that subject al
all, but IL is due to them TO say that they
have always been earnest and active in oil
measures TO promote what they regarded as
| the Cenural's interests"
SIS it not absolutely in the power Of the
Central's directors to prevent the Terminal
from despoiling the Central Of its securities
or to run down the physical condition Of the
roadi"
at is. Under the lease we keep the GUS
tody OF our securities and they are required
to maintain the property In good condition
and to renew and replace whatever is worn
out and destroyed in use"
ABLE TO CARE FOR ITSELF.
"If the lease were broken is not the Cen
trails earning power sufficient to pay all
fixed charges, including interest on floating
debt and dividend to stockholders"
"Yes, so consider it; but until our float
ing debt ia funded by a satisfactory sale of
bonds, IL might not be prudent manage
ment TO pay dividends
Gen. Alexander was sho wn the following
paragraph from the New York Tribune.
ut is said that two, ct least, of the mem
bers elected to the Georgia Central board
are entirely satisfactory to John C. and
Patrick Calhoun, and that if their election
had been foreshadowed at the meeting last
|
lions would have been different. The charge
that there was conspiracy to effect the
| election of a board subservient TO the wishes
Of the Richmond Terminal is in accord
with the report that on Saturday the threat
was made that Richmond and Dauville Off.
Gals would be put into the vacant places.
This threat is said to have led to the results
that followed Saturdays meeting.n
Gen. Alexander declined to make any
comment upon it.
MISTAKEN THIS TIME.
According to the interviews and state.
ments published in the New York paDers
the Richmond Terminal directors are uuder
the impression that the Central directors
are elected temporarily only and can be
called upon to step down and out at any
time it may suit the pleasure of the Termi-
nal people to request them to do So Almost
anybody in Savannah could tell
them that they are laboring under seri-
Gus mistake aud that when the Central rail-
roads board OF directors is elected it is for
a year aud no less, unless they see fit to re-
sign OF their own accord. In fact. il the
Terminal people should conclude that it
was to their interest to have the resigna-
tlons of the present board and should so
order it they would find themselves abso-
lutely without resources In case the direc-
tors should refuse TO 20 out.
ELECTED FOR YEAR.
The charter OF the Central railroad speci-
fies the time of election and the term Of
Office, one year. There is no provision made
for temporary boards.
To show how the Terminal people regard
the recent election of Central railroad
directors which unexpectedly proved so
satisfactory in Savannah the following
statement given out for publication by
Secretary A. j. Raub OF the Terminal board
is reprinted.
Tho directors Of the Richmond Terminal
Company have acted in this case in the same
way that they will act in the Richmond and
tions Of boards of the smaller leased roads
That is, all boards of directors now elected
are to hold Office only until the stockholders
committee Of representation, of which Mr.
Olcott is chairman, shall submit it's plan and the
stockholders vote upon it.
President Alexander does not agree with
Secretary Raub and other members Of the
Terminal board in their opinions on this
subject He submitted the following state
ment for publication yesterday:
"The election Of directors of the Central
railroad Monday was held under their char
ter, which does not permit OF either q
temporary or of postponed election.
THE charter requires the election to be
held on tue first Monday of January, and
no further election is possible under IL I'M
less the number Of directors should be re-
duoed below five, in which case only after
: thirty days advertisement could al election
take place.