The morning news., 1892-03-11
LEFT OUT OF THE SUIT.
WESTERN CAROLINA AND PORT
ROYAL AND AUGUSTA NOT IN 1T.

Are Not-The Richmond and Dan
vills's Undertaking the Operation
and Control of the Central EQuivs.
lent to a Confirmation OF the Lease.
Many people in the city, stockholders and
railroad men included, viii be surprised tC
know that the Port Royal and Western
Carolina railroad and the Port Royal and
Augusta railroad do not come under the
temporary receivership Of the Central, and
viii not come under the control Of per-
msnent receiver should one be appointed.
An official notice was recsived yesterday
by the railroad officials here from the At
lsnts headquarters to the effect that
the Port Royal snd Western Caro-
lima and the Port Royal and Augusta
were not affected by the receivership and
that their relations TO the Richmond aud Dan
vile were unchanged. This was not under
stood BY some Of the railroad men even, who
supposed that the Caroliana roads were
branch lines Of the Central. They have
been operated as such for several years and
appeared upon the maps Issued by the
Central as part of the system.
GEN. ALEXANDER EXPLAINS 1T.
Gen. Alexander was seen Last night aud
explained the situation. ''The Port Royal
and Western Carolina and the Port Royal
aud Augusta Railroads are not leased lines
OF the Central and so do not come under the
control Of the receiver.
"The Central railroad simply owns the
majority OF the stock Of these roads, but
legally they are independent lines. Their
position is very nearly the same as that Of
the Wrightsville and Tennille railroad and
the Upson County railroad, of which the
Central railroad owns a majority of the
stock, but which have independent organ
izstions. The WrightsviIle and Tennille
railroad is operated INDEPENDENTLY and
elects its own officers. the Port Royal and
Western Carolina and the Port Royal
and Augusta railroads have their sep
arate elections annually for directors, who
elect their own officers and control the road.
The Central railroad controls the elections
By owning the majority Of the stock"
IN CHARGE OF BOTH ROADS.
Gen. Alexander is president Of both the
Port Royal and Western Carolina and the
Port Royal and Augusta. Supt. McBee is
superintendent or general manager, and
the general officials Of the Richmond and
Danville also perform the same duties for
the Carolina roads at nominal salaries. The
effect is the same as II the roads were owned
or leased by the Central. No dividends are
paid upon the stocks OF the roads, and the
Central owns all OF the bonds of the Port
Royal and " estern Carolina These bonds
were issued by the Central for the
purpose Of extending the road 60
Greenville and Spartanburg. This line has
never proved a paying investment and the
against one of theee lines, Gen. Alexander
Gays. could not be brought against the Gem
tral railroad, but would have to be brought
against the lins itself.
THE STOCK OWNED BY THE CENTRAL.
As the stock of the railroads is owned by
the Central, their stock goes into the hands
of the receiver along with the other assets
and properties of the Central. Gen. Alex
ender is president OF these lines, how
ever, and not receiver. The Rioh-
Enond and Danville controls the lines
Through the Central railroad.
There are several lines controlled, or
partially SO, by the Central through the
ownership Of stock which are not leased.
The Central WINS half Interest in the lease
OF the Georgia railroad and half interest
IN the Western Railway OF Alabama and
the Atlanta and West Point railroad, the
Georgia railroad owning the other half. As
the Central owns half interest In the
Georgia railroad this gives It q three
quarter interest in the Atlanta and West
Point and Western of Alabama railroads.
great maay people will be surprised TO
learn that the Carolina lines are not leased
lines OF the Central technically, though con-
trolled byit.
THE LEAsE CONFIRMED
Gen. Alexander was. asked what there is
In the report that the Richmond and Dam
vile had never ratified the lease OF the Cen.
tral railroad to the Georgia Pacific.
THE fact Of the Richmond and DanvflIe
undertaking the operation and control of
the Central railroad" he replied, 'is suf-
Hcient confirmation Of the lease"
Gen. Alexander was asked IL it Is at all
likely in bis judgment. that the Richmond
and Danville will not contest the bill for the
appointment of permanent receiver, and
Will allow the case TO go by default. He re.
piled that It Is not likely that the Richmond
and Danville will relinquish the Central
railroad without legal fight after having
taken SO much time and having gone to SO
much trouble to secure it.
WORTH FIGHTING FOR.
THE control of the Central railroad costs
che Richmond Terminal less than $3.50, 900 a
year" said Gen. Alexander, there being
about 81. 600 shares held by outside parties,
upon which they have to pay the z per cent.
dividend. 1t is surely worth this small
amount TO control the Central railroad
alone, and for the privilege of operating the
three systems as one. | still firmly believe
that the lease is for the best interests of the
systems, and chat it is to the advantage of
both to continue it.
In reference to the action of the Augusta
and Savannah directors in taking stems to
protect the interests ofthe stockholders thew
represent ard their intention to have the
Augusta and Savannah dividend made n
fixed charge in case of the appointments of a
permanent receiver, Gen. Alexander said
the Augusta and Savannah and the South
western stockholders could have no better
guarantee OF tho payment of their dividends
than they already have from the Central
railroad and making them fixed charge
would not add anything to it,
GEN. ALExANDER's POSITION.
Gen. Alexander declined TO discuss the
probable action Of the court, and also the
mention of his own name for permanent
receiver. He was told that there is a strong
sentiment in his favor among the minority
stockholders. He replied that at the last
election many OF the minority stockholders
residing IN this city came up without being
registered and voted their stock for the
board as an expression Of their confidence.
The lawyers in the case, Capt Cunning
ham for the railroad and Mr.. Rouutree for
MRS. Clarke, said yesterday that there was
nothing new. Capt. Cunningham said that
he did not know what other attorneys for
the Richmond and Danville would be pres
ent besides himself. He is busy getting the
documentary evidence in shape for the hear
lng. 1t is pretty well understood that Judge
Pardee will sit with Judge Speer at the
hearing.
mistake crept into the report Of what
was said by Mr.. West to the MORNING
NEWS, printed Yesterday whfch rannfrae