The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-08-23
PAT CALHOUN HITS BACK.
u ANsWER TO TIE ADVISORY
" COMMITTEES CHARG IS.

IT.. address of the advisory committee Of
.ran,aap OF the Richmond Terminal, max
~. .barges against trustees who were said
=. S.va wrongfuIly profited by the sale Of
~. caorpia Central and in other ways, was
,ntornreted as referring to Pat Calhoun,
- e Calhoun and John 81. Inman. Pat
C.Iboun making this view Of the situation.
rostsrdsy talked freely Of the charges made
~ the auimus that actuated them. Mr..
C,Ibopn was asked if he could throw any
,,-ht m the inspiration of that document.
Hereplied:
nTbs Dersonnel of the committee is quite
ir,nortant in determining what their real
Iiilrnosas are. There are some members Of
haFFsinst whom know nothing, and who
~ snre have been misled, but a large num-
tSr If them have strong personal reasons
tor attempting to withdraw public atten-
t1n from the real causes which have pro-
Snca5 the present deplorable condition of
the Terminal company.
"On the committee are MessrS. Clyde,
Cosdby and Maben, compliments in the
hi to put the Richmond and Danville
Railroad Company in the hands of receivers,
abich prevented Messrs. Drexel, Morgan
& Co. from undertaking the reorganization
NJ the Terminal company. There is also
Jobn A. Rutherfurd, who, assuming to act
although be had never been elected by the
hoard Of directors to that Office, confessed
Judgment in favor of the. receivers of
the Danville company and of MessrS.
Clvde and Maben, although the Danville
company was largely indebted Co the Ter
mnal company aud in possession OF assets
Of the par value Of over $5,000,000. This is
The same gentleman who, when the board
Of directors had unanimously passed res
olutiJn instructing the general counsel OF
the company to postpone the bearing for
the appointment OF permanent receivers,
signed an answer for the Danville company
which had been drawn by the counsel of
Messrs. Clyde, Maben and Goadby without
the knowledge of the counsel of the COM
pany.
in the intervention Of John Bloodgood,
which was fled at the hearing in Richmond,
w. on the 10th of this month for the ep-
p0intment Of permanent receivers, charges
are made in detail against Messrs. Clyde,
Ggadby, Msben, Huidekoper and others.
The charges show conclusively that the
present condition Of the DanvilIe road is due
to leases which were made some years ago
by Messrs. Clyde, Huidekoper and their as
socates, and by Messrs. Mabeu, Goadby,
Stone, Rutherlurd and their associates.
This intervention, owing to the fact that
1t was not read, seems to have escaped
newspaper attention, but it is evident that
Mr.. Clyde and his associates are extremely
anxious to divert attention from their mis-
deeds. This Intervention showed that on
June 80, 1891, the advances which bad been
made by the Danville company to the lines,
for the leases of which Messrs Clyde, Stone,
Msben, Rutherford aud their associates
,ofk Al
advances we're made prior to the lease Of the
Georgia Central road, and did not include
any of the alleged advances to that COM
psny. The Intervention also showed that
Mr.. Clyde, his receiver, Mr.. Hulde-
k0per, and their associates had con-
yerted income bonds into fixed charges and
had secured the guaranty of the Danville
company upon the bonds of roads they
leased to 1t. The loss on the Georgia Pacific
railway alone is certainly in excess of
s., 800 900. In view OF these facts ard the
near approach Of the stockholders meeting
Of the criminal company, 1t was, no doubt,
thought important by these gentlemen to
mislead the stockholders of the company by
dlvertiug their attention from these mat
tiers and endeavoring to charge all losses to
the acquisition of the Georgia Central.
Mr. lnman found the Danviile company
loaded down with Improbable leases when
he assumed the presidency"
what have you to say in regard TO the
charge that the Terminal board declined to
carry out Its promise to cooperate with the
Norton committee, and have practically
abandoned its trustp was asked.
In view Of the names signed to the report
OF the advisory committee" Mr.. Calhoun
replied, this charge is quite humorous.
Among those signing the report OF the So
called advisory committee are several of
the dlrec Jors who were most active in over
throwing the Norton committee, and who
elected themselves aad their friends direct
oTs OF the various railroad companies COM
prlslng the Terminal system.
MY brother, myself and Messrs. Abram
q Hewitt aud H. B. Plant vigorously op-
posed the action of these gentlemen, and
'oelr hlgh-handed course last December
caused me to resign my position as general
southern counsel because l would neither
Gelsnd nor carry out their measures and to
uecare through the. public prints 70 the
s'ocEholders that the policy these gentle
iueh we're pursuing would wreck their prop
eI'leS' The advisory committee included
nulJhR Its members Messrs. Clyde, Mabeu.
Au'nerturd, Strong and Thomas, and they
are responsible for the fact that the board
AaS aodlcated its trust in favor of the COM
ilIIuee OF which these gentlemen are men,
hat have you to say In regard to the
plIVuaSe OF the stock of the Georgia COM
pAnH by the Terminal oompany"
4oe charge that the subcommittee has
+ouuu evidence that certain trustees of the
sgIpahy have proflted largely with their
-,i9uls 70 The extent of between 81, 000, 900
~ S4'OOO,OOO by the purchase of the stock
tt tne Georgia company purchased by
- ,roui'elVes from Themselves and friends for
s si1 company is absolutely false. At the
~ s?' Qi thls transaction l was not director
S,as oI'neI the Georgia or the Terminal COM
IT, MY brother was director of the
c'.Il company but not Of the Georgia
ts Oupahy. The majority of those owning
lne stock Of the Georgia company could
~ le classed as our friends. They had
w. an active part in g contest for
snr, Uohtr9l OF the Terminal company in the
r. OF 1888, and were opposed both to
tba lulnsn, my brother and myself. At
VIZ Nesting OF the Terminal directors at
,nS Ou euls trade was made, both my brother
f. UT lnman declined to be present.
tbs, u wrote letter to the board stating
ST.. 'uey were owners of Georgia COMPANY
~, A anQ Tor that reason would not take
ri ~ the meeting where the purchase of
in f.,o ock was considered. The resolution
ts,or OF the purchase of this stock, | am
ana med was offered by George s. Scott
bsr u, Ssec,9nded by George F. Stone, a mem
xnbo W. tne advisory committee aud of the
~ .uIllttee on reorganization"
the as Is stated, Mr.. Calhoun, that you are
,bo.u5, ector referred to in the statement
dr. arts for large sums were made by a
COM, 0Uor on the treasurer Of the Terminal
bel t mhen became general southern coun-
serjon, ' Iie company found it involved in