The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-03-05
In thu Hands Of a Raosiuer.

1
Six years ago the Central Railroad and
| Banking Company, which at the time was
one OF the greatest and most prosperous
railroad properties in the south, passed into
the hands of Wall street men Yesterday
a receiver took possession of it. The an
nouncement that il was in a receivers
hands created a profound sensation in this
city, as it will throughout the state. The
! Central has always been regarded as a solid
Georgia institution. aud as such Georgians
feel pride in itsand great many Of them
are owners Of lis securities.
There is some satisfaction 10 the thought
that the appointments of temporary re-
oeiver was n1tebrought about by default
in the payment Of any of the roads obliga-
lions. The purpose of the action on which
the receIvership is based is to break the
lease OF the Central to the Richmond and
Danville.
The plaintiff 10 the suit is Mrs. Rowena
NJ. Clarke. OF Charleston, who alleges that
she owns fftyehares OF the Centrars stock.
She asks that the lease be broken on the
ground that it is against public policy and
contrary to the state constitution, and be-
cause she believes that she is in danger of
losing her property.
As is well known, a committee Is now en-
gagged upon plan for recognizing the
properties which are controlled by the
Richmond Terminal Company. The Central
railroad system is one of these properties.
The suit to break the lease Of the Central to
the Richmond and Danville will doubtless
check work upon that plan. Whether it
will prevent the plan from being carried
into effect is question that cannot now be
answered. It would seem as IL the lease was
not necessary TO the plan OF reorganization.
The East Tennessee, Virginia and Georgia
Is an independent corporation, and 1t is in
cluded in the reorganization scheme. The
breaking OF the lease, therefore, would not
necessarily make the reorganization under
consideration impossible. Indeed it might
assist it, for the reason that the guarantee Of
per cent. dividend upon the Central's
stock being no longer in force and the
ability of the Central, operated as an in
dependent system, TO pay that dividend, or
even a smaller one. being doubtful, the
minority stockholders might be more willing
to accept the reorganization scheme than
they would be otherwise.
1t is difficult to see how the plaintiff ex-
poets to be benefited by the course she Is
pursuing. She may think her stock will be
worth more with the lease broken than
with it in force. But il the lease should
be broken the Central system would still be
controlled by Wall street men. The plaintiff
seems TO think that the majority of the stock
of the system is so held that it cannot be
used legally to control it But the stock
could be so distributed. easily and quickly,
as to avoid that objection, if the objection
is valid one. II is, therefore, not appar-
emit what the plaintiff has to gain by her
suit.
There are. Of course, various suggestions
in connection with the suit. One is that the
Richmond Terminal wants the lease broken
to facilitate the work of reorganizing its
properties. Another is that there are par
ties who want the reorganization scheme de-
feated in order that some Of the Central
system may be used in forming another
combination. No one can say, except those on
the inside, whether either Of these sugges-
| tions have any foundation. In the absence
OF any information to the contrary, the rea-
sons Of the plaintiff, as stated in her petit
ton for bringing the suit. must be accepted.
II the suit is not withdrawn it is not i'm
probable that the decision will be against
the lease. A decision rendered recently
in case in which question similar TO
the one in this case was presented seems to
justify such a conclusion.
II the lease is broken, how will Savan-
nah's interests be affected? The answer to
that question depends, of course, upon
whether she would again become the head
quarters of the Central. and whether new
combinations, which undoubtedly would be
made, would be for or against her interests.