The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-06-23
In Need OF Information.


take that prscaution what it says would
then have more weight with intelligent
people.
In a recent article, entitled Investments
in the South" IL says:
The appointment of receivers of the
Richmond a1d Dsnville railroad presents
the singular anomaly of stockholders tying
up the property be ause, in obedience TO a
misdirected and blighting local sentiment. a
Georgia judge Of the United States courts
permits a minority interest 20 manage u
railroad and the rights Of other shareholders
to be contiscated.
1.-THE Richmond and DanvilIe receivership
is the result OF we'll grounded belief on
the part of northern and foreign capitalists
that IL has become necessary 20 protect
their property in the south by such meas
ures, because as individuals they have
become afraid they canuot get justice and
will be wrongfully and unjustly treated by
| southern courts.
This is a serious stigma on the south and
establishes a barrier in the path OF progress.
Investors will only send money where they
know it will be protected. So long as the
south does not offer the security which the
capital that would build it up is entitled to.
investors will withhold their money and
| take lower interest In other sections. So
long as local sentiment does not treat in
vesuors fairly every avenue of development
will be impaired and retarded in the south.
"As a result of this singularly shortsghted
and repelling local sentiment, the Georgia
Central railroad, a thoroughly solvent cor
| poration, is now in the hands of a receiver
\ and is being managed by minority in
| terest, which has confiscated the interest of
outside stockholders. II this sort OF thing
continues investors will leave the south
alone.n
1t is evident that the Telegram doesn't
know anything about the affairs of
the Richmond and Danville or the
Georgia Central. 1t has taken some state
ments made by interested persons as being
absolutely correct. 1t has yet to learn appar-
emily that there are two sides to most guess
tions, and that both sides should be heard be
fore expressing an opinion with respect to
the merits Of the questions.
In the foregoing extract there are three
points TO which 1t is desired to call
attention. The first is the statement that
the Richmond and Danville was put
into the hands of receivers Because 1t was
thought that United States judge Of this
state would put it inGo the hands of an un-
friendly receiver. The second is the asser-
ton that as a result of local sentiment the
Georgia Central Is in the hands of receivers,
and is being managed by the minority stock
holders who have confiscated the interest of
the outside stockholders, and the third is
the declaration that investors are becoming
| afraid to invest money in Georgia because
they fear the southern courts.
As to the first point: 1t is evident to
| any fsir-minded man that the Richmond
| and Danville was ripe for receiver long
| before the Georgia Central asked to have a
receiver appointed for it. Il the Telegram
| had taken the trouble to read the bill filed
by Messrs. Maben, Clyde and Goodby, It
would have discovered that fact Neither
Judge Speer nor any other Georgia judge
would put railroad into the hands Of
receiver unless there was cause for
doing so. Why did Judge Bond APP
point receivers for the Richmond and Dan
ville9 For the very good reason that
| it was shown him that the road was in
solvent. The Georgia Central asked for the
| appointment Of a receiver for the road be-
cause it believed such a course offered the
only chance for it to get what the road
| owed it.
| AS to the second point: The Georgia
| Central is not in the hands of receivers ia
obedience Co local sentiment. The applica-
ton for a receiver was made by an outside
stockholder-a stockholder of another
state-and that stockholder was Joined by
other outside stockholders. The chief re-
sistance to the appointment OF receiver
came from stockholders ia the state
The interest of outside stockholders has
not been confscated. The voting power Of
one block Of the stock-a block that con-
tains the majority of the stock-has been
enjoined, because 1t Is held by corpora
ton. which holding is contrary TO the
constitution of the state. This block Of
stock is held by the Richmond Terminal,
corporation that is in the hands of a
receiver. The only interest the Richmond
Terminal has in the stock is the right of re-
deeming it, having pledged it for all it is
worth. Having only such an interest it is
apparent that the Richmond Terminal
cares nothing for the Georgia
Control except what 1t can make out of it.
While it controlled the property it very
nearly ruined it. Outside shareholders,
other than the Richmond Terminal, rejoiced
when the road was snatched in its mutilated
condition from the Terminals grasp.
AS to the third point: There isn't thor
oughly honest banker or investor in New
York or Europe who does not approve
Judge Speer's course with respect to the
Central and the Richmond and Danville,
and there isn't one of them who would hest
tate to invest money IN Georgia because of
anything Judge Speer has done. Indeed.
they would invest all the sooner because they
would feel that IL their property should get
into the hands Of wreckers there would be
some chance of getting it out and saving
some Of it. In proof Of this it is only neces-
sary to mention that just before the Georgia
Central was taken from the possession of
the Richmond and Danville it had no credit
in New York. Now its credit in that city
is to very considerable extent re-
stored. If the Telegr am is sincere, it is in
need of information.
As illustrating the low level to which
some of the anti Cleveland heelers in Chicago
stopped, it is said that on Tuesday evening
the reDort WAS nnt in circulation that PreSi-