The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-06-09

pay the same over to the said
5 Iac,nc company, its successors or as
I Tease provides, in its second clause: THE said
racine company" land wherever the word Pa
enc is used in the lease the words Richmond
ana Danyllle' should be used), its SUCCESSORS or
assigns shall assume aud settle all running ac-
counts OF operation, salaries wages supplies
car mileage, freight anA ticket balances, that
may De IN eXlStence when the property hereby
demlsed Is turned over, and shall receive all
balances arising on such accounts or due by
agents or other transportation lines at that time
10 the SAID Central company. its leased aud op-
Grated lines, the intention being that the said
racine company, its successors or assigns shall
taAe possession of said leased property as a
running road, providing for It's current and
o1her expenses, and receiving such cash and
credits as may be then due and payable for cur
rent operations. Article 10 Of the lease pro-
Vdes: -" and hereby covenants and
agrees that the Pacific company will pay TO the
tions:
on all roads now leased, at the times
ana according to the terms provided in said
leases, including the payment OF such dividends
tead "
= Section of said article provides that the
"a zinc company shall pay an amount equal to
per centum per aunum upon the capital stock
OF Tue Central company. now aggregating
Sn5OO,OOO to wit: $685., 500 being 31b per cent
payable on or before the Goth of december of
e e ana every year, and like amount on the
pears on pages and of the lease that the
southwestern Railroad Company of Georgia
is one of the leased lines. 1t also appears
.hat' IN Consideration of the lease of
luis last mentioned road, the Central
became obliged TO pay the semi annual divi-
oends in December and June of each year. of
notl less than percentum per annum on the par
value of the stock From a consideration Of
tnese claus IS the court is entab,ed without any
dlfncuty whatever. to arrive at what appears
TO be the unmstakable conclusion, tnat the
central railroad, by the terms of the lease, was
entitled to retain control and custo iy of all of
us securities, such as the steamship stock in
VOWED In this controversy. 1t further appears
mat the lessee company was plainly Obliged to
assume and settle all running accounts OF op-
GRAFTON, salaries, wages, supplies, car mileage,
freight and ticket balances, " that were in ex-
lstence when the leased property was turned
over to them. 1t is equally as clear that they
we're Obliged to pay the rental of semiannual
dividends on the capital stock Of
the Central and Southwestern Rail
road companies, which semi-annual dividends
were due and payable in June and December.
NOW what does the documentary evidence prove
TO have been the conduct of the Danville COM
pany IN the presence OF these plain and uuques-
tlonable obligations Of their contract of lease
itself! AS We have seen, it is not needful to
refer to any testimony about which there can
be dispute. The Contemporaneous telegra MS
and letters speak the truth of the transaction
satisfactorily and with an unerring precision
which the memory of a witness could not com
pass, however intelligent or truthful that wit
ness might be-
On Dec. 20 the assistant cashier of the Cen
trail Railroad Bank telegraphs the treasurer of
the Richmond and Danyille railroad as follows:
Under instructions from MIR. Cunningham,
cashier. am forwarding to-day checks drawn
on you in favor of the Hanover National Bank
for account of the following payments;
Balance due on Central railroad
dividend OBSERVATION-DISCLOSURES. 59,O63 so
On account of certificates of in
On account of Southwestern diyi. -O''''' ~
On account of Southwestern divi.
dend ......... .........,........... $4,000 90
uenu ........... ................. lsb,b6o 50
ALI OF which are referred to in his letter of the
18th inst. to you Yonrs truly,
"a, G. ULMER, Assistant Cashier"
In reply to this telegram, there came the fol-
lowing:
"NEw YORK. Dec. q, 1891.
1T. M Cunningham, Cashier, Etc:
Understand that you are not to draw drafts
until wire you. They are ordered by execu .
JOHN A. RUTHERFORD, V. P"
The commanding tenor of this message is
noteworthy If Cunningha is to be regarded as
the officer Of an independent corporation.
1t is to be observed that all Of these sums were
due in December, and that the kilograms were
sent il late days of that month.
On Dec. 26th it appears that A. j..
Rauh, treasurer, supplemented this telegram
Cunningham, cashier at Savannah:
Il am ordered by the executive committee TO
direct you to wire Hanover National Bank at
once to hold drafts mentioned in your letter of
Dec. Goth, until further orders, Answer.
"a. j. RAUH."
1t will be perceived that the executive com
mittee of the Danville does not request, but
directs the cashier of the Central.
To which Mr.. Cunningham replied:
Have drawn checks Saturday for about one
half, predicated on their payment
1T. NJ. CUNNINGHAM, Cashier"
We now advances to Dec. Goth, at 10 a. m. The
month of December is nearly gone.
The Danville company have but little
more than two days in which TO comply
with their most important obligations,
in consideration of which between forty and
fifty millions of property with all of its income
and profits, have been delivered into their con-
trol-obligations upon which thousands OF in
nocent people depend for their maintenance,
and the credit Of a great railroad system for its
int 9rity. 1t is not surprising, therefore, that
President e. p. Alexander of the Central COM
pany shall take charge Of the correspondence.
He sends this telegram:
40 A M, G. T., SAVANNAH, GA, Dec. 90 81.
"Gen. Sam Thomas. Ne'o York city:
Delay in payment of our drafts authorize |
last week upon agreement about securities. will
Immediately destroy our credit and authorize
Speyer to call loan. See message to Rutherford.
l cannot too strongly urge their payment"
Gen. Samuel Thomas, it appears from the
record, was director of the Danvlle company.
He answered:
Seen. f. p. Alexander, President:
Telegram received When you were with us
on Saturday, you ought to have notified US that
you proposed to deposit those drafts immedI-
ately. IL is not usual between friendly bust
ness interests for drafts to be deposited without
the attachment OF no protest. You also
failed to deposit the stock to protect the Rich
mond and Danvlle for advances. If the Cen
trail railroad officers will render US the ass stance
which we think we have a right to expect from
them advances will be made to meet their obli-
cations If they will wire the Central Trust
Company, placing New England stock subject
to our order as security for the advances you
require for dividend and interest, the advances
viii be made. SAMUEL THOMAS
IL will be observed that Gen Thomas uses the
word advances" as if the Danville was under
an obligation merely to lend the Central money,
and he speaks of advances which will be made
to meet the obligations of the Central Presi.
dent Alexander was demanding not an advance,
but payment, and payment-not OF obligations
of the Central, but of the Richmond and Dan
vile. The Central had transferred its entire
property and assets to the Richmond and Dan
vile, retaining nothing save the right TO con-
troll certain securities, and default was about to
trial, but upon default of the Danvhle to pay
certificates of Indebtedness of rental dividends
which it had assumed as the consideration by
which they mad obtained tbs Central properties,
with their incomes and profits. To this telegram
President Alexander replies, the same date:
'tGen. Nnnluet Thomas, NeI0 ork:
ave did notify Rutherford and gave him
written memorandum Thursday after talk with
YOU He did not ask mo protest. said he was
ready to meet them. l have reported to our
board security in escrow, which is all can do
under terms of lease.
Delay in payment is in plain violation Of
lease, wnich provides arbitration Of differences.
/ am willing to do anything legal, but cannot