The morning news., 1892-03-27
ALEXANDER TO GO.
TBE CREDITORS And DIRECTORS
BOTH Wish IT.
A Strong Feeling in Favor Of a
Receiver.

Its Tangle-Mr. Erwin's Argument
Occupies the Entire Day in Court.
MACON, GA, March 26.-The rocks aud
shoals ahead Of the Central appear to be
Increasing in number. An attorney repre-
senting large creditors is reported to have
said to-day that. in case a receiver is not
appointed. he will file bill making a new
request for one, and that if the road gets
out of the courts this time, the creditors
will put it back in again. have 1t straight
from the inside to-day from two separate
parties that the New York creditors are
opposed 60 Gen. Alexander, and will so de-
clare in case a receiver is appointed, and
that they have already intimated or have
given notice, that if the road is returned to
the hands of the directors that they will
oppose his retaining the presidency.
Further, 1 have it authoritatively that the
directors themselves, or some of
them, agree with the New York
creditors that it will be better for Gen.
Alexander to retire. This Gen. Alexander
has declared he will not do, ana is deter
mined to fight for his position to the bitter
end. In case Gen. Alexander will not re-
sign then the directors will resign from
under him. II forced to give up the presi-
Il dency or control OF the Central, said my
informant, who is close to Gen. Alsxar der,
8 be will retire across the river to South
4 Carolina and take control of the Port Royal
and Western Carolina railroads, Of both of
& which he is president, and the directors of
4 which are thought to be more complaisant
toward him, and continue to operate them.
The statement Is sensational, but there is
B little doubt Of the truth of ii, coming from
two separate parties independent of each
other. Something of the same kind was
also intimated by director.
THE DAY IN COURT.
To-day was absolutely fruitless so far as
results are concerned in the Central railroad
case. 1t was expected that the argument
would be concluded. Instead the entire day
was occupied by MIR. Erwin in a speech that
occupied from 1920 to 3 o'clock, with the
exception of the half hour recess. Mr..
Erwin's speech was fine legal argument
1t covered every point IN the case and every
point of law that can possibly bear upon il.
/ If the judges read all the host of authorities
cited by Mr Erwin it will take them a
week. The judges paid Mr.. Erwin the COM
pliment Of listening TO his long speech with
almost no interruption Mr.. Erwin's speech
was source of some worry to the news
paper men. They and other
Interested parties were eagerly
which they had been given reason to ex>
pect by rather indefinite statements from
attorneys and others, and they were anx-
ious for Mr.. Erwin to conclude and give
somebody chance to inject something
new into the case. If Mr.. Erwin was not
m nall l-nl H.
might touch him up a little for his long
speech.
Court opened quietly with the usual
crowd in attendance. After the reading of
the minutes Dir. Erwin arose and announced
That there were some papers in court which
he thoughtit absolutely necessary for the
proper decision of the case to be introduced.
The papers show the relation of the Central
to the Terminal company. of the Danville
70 The Terminal and showing otherwise the
general relations of the propertieS to each
other.
THE PROCEEDINGS BEFORE THE LEGIs-
LATURE.
He then proceeded to read report of the
proceedings before the legislative commit
Zee IN 1889, previous to the investigation OF
the case in 1891, showing that the Central
was In danger OF losing its charter. Mr..
Erwin read the evidence of Gen. Alexander
uetore the legislature as 60 the formation of
.ne Georgia company for the purpose of
Ouylng up q majority Of the Central stock
Tuu controlling it, the formation of the
Nchmond and West Point Terminal Rail
way and Warehouse Company. aud the con-
Vess Win Capt. Raoul, IN which Gen. Alex
alaer stated that they borrowed money
lom the banks at the rate of about $95 to
very Sl25 laid out on long time by means
NJ NE formation Of the Georgia company
- 1H@ IT.
euhessee company coming up Judge Par
ce called attention to the fact that Jay
ueuld, Senator Brice. j. II. Inman and
o.uefs who were directors of the Terminal
ympany were also directors of the East
-e1hessee company.
4r Erwin began his argument by dis
~ using the question of competition between
nc Hsst tennessee and the Central, which
sT, "V Saimed was Of a most marked and con-
r,vuous character, they being natural
~ upetltlve lines. He read an agreement
ana ni"Sen I5t the Central and Savannah, Florida
mo. nv estern agreeing not to build any
NJ bSe falroads into each others territory,
S"ohe tGa' the Plant system should make the
m can sn Steamship Company its outlet for
en5 eight over its line for northern points
Sro. nv wat the Central in turn should give the
bssin1fence to the Plant System; that they
n al al make each other preferred connections
kbo', b~H points OF contact; that neither party
.na..4 .4 oulld or encourage the building or
btSoa.auhg Of any other railroad in their ter
boriji yi nor would they allow, SO far as they
n, h All sbaa aAa"fully prevent, any other line to
'"eF rights OF way.
THE EQUITY RULE.
oni,. mt, Erwin discussed the ninety-fourth
ss5y 5y rule and cited authorities. He also
nd peue charter Of the Central Railroad
Dows. .nanEng Company and its banking
de held that the Central had no
%urot. % 70 lease itself and has no power to
H. ase rae stock in another corporation for
esd 'sstpose OF controlling 1t. Mr.. Erwin
Erp,, tHe c agreement between the Central
bhicb company :, and the Georgia Pacific, in
&toeE tus trust company agreed 10 vote the
md aueiu by 1t at all elections for officers
VPac,sa' ectors as directed by the Georgia
tCenrrsi lie made some reference TO the
Ehe t attorneys Mr.. Lawtoa stated that
3heltbss might as well be understood that
In H. ~. VI TIE attorneys Of the Central we're
Einder pay ot the Danvills or Terminal, or
Enstr'aa.Ily obligation 70 them, or under any
Ia ssls s1ols from them whntever. Afr. Lave
HRl5.O6, ,sllied that the Central receives
a..