The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-06-05

Carolina for the purpose of facilitating the &C.
complishment of said plan, and said Georgia
Company then issued S12,0O0,0OO of stock and
$4,000, 900 of bonds. and secured the latter by q
hypothecation of said Central railroad stock.
Thereupon all the stock of said Georgia Com
pany was conveyed to said Terminal company.
which also acquired very nearly all of the bonds
of said Georgia Company, and thus, since
said time and for several years prior to the
lease, the Terminal company by its ownership
OF said 10000 shares of stock controlled said
Central Railroad and Banking Company, select
ing its president and directors, and debating its
policy. And thus, too, at the instance OF SAID
Terminal company, owning said Richmond and
Danville company, the lease was made by said
Central Railroad and Banking Company, which
vested the possession, use and control of its rail
road and other properties in said Richmond
and Danville Railroad Company as aforesaid.
1. That soon after obtaining possession Of the
property of said Central Railroad and Banking
Company under said lease, said Richmond and
Danville company erased the name of the Cen
tral railroad from a number of its cars and
placed thereon in large letters its own name,
which was in violation of the express provis-
ions Of the lease and called forth the protest of
the president of said Central railroad. In De-
cember, 1891, shortly before the first semi AN
nual dividends of three and one-half per cent.
$40 on the stock of the Central Railroad Com
pany and three and onehalf per cent (3lSD on
the stock of the Southwestern Railroad Com
pany, guaranteed by the Central, became due
under the lease, said Richmond aud Dan
vile company, through its directors, presented
bill of about $780, 00 against the Central Rail
road Company and demanded its settlement, or
the surrender of securities belonging to the Cen
trail Railroad Company which would yield that
sum. The entire bill represented running &C
counts of operation" aad items which the Rich
mond and Danville, under the sixteenth art-
Gle of the lease, agreed to assume and pay, with
the exception of an item of s. for the Mobile
and Girard extension, which had been settled
the month before by an Offset of the Central
against the Richmond and Danville, admitted
~ fha lat auditor ITndAr said SlXtAPnth
article, the Richmond and DAnvile
took possession of said Central as run
ming road, assuming its outstanding, current
and operating indebtedness and receiving all
balances arising such account, or due by
agents or other lines. In point OK fact, in TAX
ing said Central as a running road" the
amounts received from it by the Richmond and
Danvile in cash, accounts and material, quite
eQualed, if 1t did not exceed. the anou t OF
said bill However this may be- the claim was
palpably unfounded, unjust and unconscon-
able and was made at a time and under cir
cumstances calculated to generate the belief
that it was devised and urged for the purpose of
coercng the surrender of the valuable Securi-
ties of the Central Railroad Company into
Richmond and Danville company, who
then, and since then, have been
strenuousy striving to rescue ths proper,
ties d affairs Of said Danville and Terminal
companies from threatened bankruptcy, and
who needed for this purpose all the resources
and aid they could command or in any wise
nothing 10 the lease which suggests the slightest
sanction for this claim of the representatives of
the Richmond and Danville to the use of the
Central's securities, and that they had been re-
ceiving for more than SIX months the entire in
come and revenue derived from the use
and operation of said Central Rail
road Company, with its ,tensive
railroad and steamship lines and
valuable and fruitful properties. Finally, after
numerous and vain appeals to these Richmond
and DanvilIe representatives. in order TO keep
the accustomed sem i-annual dividend to Cen
trail railroad stockholders from being passed, to
by the central to the stockholders Of the South
western Railroad Company, and in the pay
ment of other fixed charges and to preserve
the credit Of the Central Railroad Company,
which was then high. the directors of the Cen
trail reluctantly agreed to deposit with the Cen
tra Trust Company of New York 1895 shares
of the stock of the New England and
Savannah Steamship Company, owned by the
Ocean Steamship Company (which last named
company was in turn owned and controlled by
the Central Railroad Company to abide an ar
bltration under the lease OF the Central Rall-
road Company's liability for said claim,of $780,
900. Recently 1t has been adjudged by this.
court that said Richmond and Danville com
many had no right to keep said stock impounded
In che possession OF said trust company TO abide
an Arbitration Of this claim under the lease,
vvbicn the action of said Richmond and Dan
Vile company had rendered impossible, and in
obedience to the order Of tnis court said stock
has been delivered up by said trust company
and is now deposited with the Union Savings
Bank and Trust Company OF Macon, Ga,
subject TO the order OF TINS court.
wherein are now pending proceedings