The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-05-31
THE GEoeGIA CENTRAL RAILROAD
Certain Errone gus Statements Cor
rected

Certain Errone Gus Statements Cor
rected.
Editor NeU York Sun SIR; / beg
space for the correction Of certain erroneous
statements which appear in your financial
article OF Sunday, May %, with reference
TO the Central railroad litigation in Geor.
ga. 1t is not true, as stated in said article,
tnat the Central railroad property was
placed in the hands of a receiver 'simpIy
because the plaintiff alleged that the
property was being mismRnaged by the ma
Jority of stockholders" nor is it true that
new election of directors was ordered ION
the. ground that the board of directors
consisted OF persons who should not be
lntrusted with the management,of the prop
erty;" nor is 1t true that tue nine directors
who have been reelected had been pre-
Vlously declared by the court incompetent
to manage the property" nor is it true that
these proceedings were 'entireY ex.parte :"
nor is there the slightest foundation in fact
for the statement that they were taken "at
the instance Oft young attorney who is said
to sustain close relations to the Judge who
ton"
The decision which placed the Georgia
Central in the hands of the present receivers
and which required new election of d.
rectors was delivered by Judge Pardee, the
circuit judge, who presided with Judge
Speer of the district court. This decision
was predicated upon the proposition that
the control OF the Geo gia Central by
the terminal company, which likewise con-
trolled other railroad systems competitive
to the Georgia Central, was I'm violation of
certain provisions of the constitution of our
state which denounce as illegal and void all
combinations and contracts Of this character
whose design or effect Is to lessen competi-
ton and encourage monopoly. This decis-
ion was reached after full hearing and
argument, in which counsel representing
all the parties in interest participated The
Georgia Central, while leased uominally to
the Georgia Pacific Railroad Company, was
at once turned over to the Richmond and
Danv1lle Railroad Company, who likewise
controlled the Georgia Pacific. The same
counsel, representing both the Georgia Pa
ciic and the Danville companies, fled an
swers in behalf of their respective clients
whereby they abandoned the lease. surren-
dered the property into the hands Of the
court, and claimed that the lease was not
binding upon the lessee because it had not
been sanctioned by the stockholders of the
Georgia Pacific company. The decision Of
the court was not appealed from, but was
acquiesced in by all parties.
Your article errs further In the statement
that the lessee company was compelled ito
SURRENDER Che inventory That 1t had made or
the Georgia Central company" This inven-
tory was made not by the Danville but by
the Central Railroad Company and by that
company alone, and its purpose was to
ascertain the property left with the Central
by the Danville when the latter repUdiated
the lease and abandoned possession. The
inventory was taken by order of the Cen
trails president after the Danville company
had declined to be represented and aid in its
preparation, and it was made under
the direction of the Centrals then superin-
tendent, by its employees and for its
use exclusively. Before the Central's presi-
dent or directors knew that the inventory
had been prepared, without their knowledge
or consent, and without any authority
whatever, the inventory was turned over to
the Danville company by one Of its former
employees, who was at that time in the serv-
ice of the Central. The inventory, there
fore, it will be perceived, was entirely and
exclusively the property Of the Central com.
pany, and the Danville company had no
right whatever to its possession. 1t was
only after repeated requests and efforts to
obtain the paper were made In vain that the
aid of the court was finally and as last re-
sort invoked.
I am sure that your article was written
under a misrepresentation Of the facts, and
that it will give you pleasure to make this
correction In justice to all concerned
A. P. ADAMS,
OF Counsel for Central Railroad and Re-
ceivers.
SGuonnGh, May 26, 1892.