The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-03-26
WINDING UP.THE fight
Arguments in the Lease Battle
in Progress.
JUDGE PARDEE'S OPINION HARD TO
GUESS At.

Leaning Toward Turning the Road
Back to the Stockholders and Letting
Them Decide the Fate of the Lease.
MACON, GA, March 25.-The time Of the
court was occupied to-day in hearing the
arguments of Mr.. Rountree for the COM
plainants and of Mr.. Cunningham for the
defendant. Both speeches were lengthy, es-
pecially Mr.. Cunningham's.
After the reading Of the minutes this
morning Mr.. Lawton requested permission
20 introduce two affidavits. one from Gen.
Alexander in answer 20 the charge OF Mr..
Erwin concerning the inventory or lack of
inventory of the Central property when it
was turned over to the Danville,
and the order from the direc-
tors as to the Danville claim.
Permission was granted. Gen. Alexander
says in his affidavit that Immediately after
The making of the lease of the Central TO
the Georgia Pacific he agreed with General
Mana er Green Of the DanviIle that the in
ventory required by the company should
be made by officers Of the lesse company,
who had been officials under his MANAGE
ment and in whom he had confidence. The
inventory was made and covered nearly 400
pages. The inventory is produced In court
as evidence of the fact. After the inventory
was furnished it was sent to Gen. Alexander
for verification and acceptance. he found
it substantially correct, but has not yet
accepted it, having BEEN waiting for leisure
to examine 10 more fully than be has yet
had opportunity TO do.
THE MONEY TURNED OVER.
II was asked by Mr.. Erwin a few days
sgo,n says Gen. Alexander, "f l had an
inventory of the amounts due by the agents
at the date of the lease, to which ! replied
that no in ventory of these amounts
was taken, as under the terms of the
lease all the accounts in the hands of
the agents baoame tho properly OF the COM
pany and they were responsible to me for
them, but while no formal inventory was
taken the amounts In the hands of
the agents is shown on the agents
ledgers, and all of those amounts were con-
soldated on the balance sheets of the COM
pany which were taken at the time. did
not understand him to ask for the balance
sheets or for these amounts ell Of which
can readily be given from the proper books
of the company. AS a whole the balance
sheet of the company and the Inventory of
the property show that the lessee company
received with the property over $S00O00 III
money, supplies and good accounts"
Gen. Alexander says that in December, 1891,
he was informed by letters from New York
that the lessee company had a claim against
the Central for about SS00,000. On going
10 New York TO investigate matters be was
shown a statement that they bad paid out
about that sum for the pay rolls, supplies,
freight and ticket exchanges and vouchers
of all kinds due June l, 1891. He called at
teution to article 10 OF the lease, by which
the lessee company was bound to pay all of
these amounts, whatever they might be,
receiving, as they did, all the cash and
credits on bond and taking the property as
arunning road.
THE JANUARY INTEREST HITCH.
THE Representatives of the lessee com
pany were unwilling to admit his inter-
pretstions of article Is and stated that
they were unwilling to advance
the money necessary 20 pay
the December and January coupons, rentals
and dividends, amounting to about $780,
OOO, unless be would give them securities
on which to raise the money. He refused
togive them Central securities, but offered
at once to put certain securities in escrow
until proper Interpretation of article 16
otthe lease could be arrived at by arbitra-
ton, as provided in the lease. This propo-
stlon was finally accepted, and 4, 493 shares
OF New England and Savannah Steamship
Company stock were placed in escrow to
await a settlement of the claims. He sent
iAd1 W Ablunld duu udu - SldtcU1e1L
made OF all the items included In the claim
The statement covered about 100 pages.
de then went to New York with a COM
mittee to meet a Danville committee to
adjust the claim. The Danville committee
claimed that they had been unable to make
up their statement on account Of the sick
ness of their auditor. However a meeting
Of the committees was held, at which he
submitted the lease and statement he had
mad prepared. The Danville committee adj
mltted that under the terms OF the lease the
claim OF the lessee was unfounded and
agreed to report to the Danville board that
they had no claim against the securities in
escrow and to advise the board to release
them. When the Danville board met the
next day, however, resolution was passed
auInorizlng the release of the securities
only on condition that the Central would
urn over to them 100000 of Mo-
0le and Girard bonds to secure
Gem for advances of about $l20, 900
Claimed to have been made by them for the
extension of the Mobile aud Girard. He
teplied that the Central bank had claim
or an equal amount of cash advanced TO
Nen and refused to give them any Mobile
slu Glrard bonds. Since that time he had
asoe persistent efforts to secure the release
"the securities but without success.
Why THE MATTER HAS NOT BEEN PRESSED.
The reason why have not pressed the
WHauer to a final conclusion" says Gen.
AeIander. ''is that / have been daily and
weekly expecting an entire change in the
management of the Richmond and Danville
rGmpenv, and the introduction of new peo-
pi5, whose pride would not have any effect
- tne determination Of a question Of their
glI to hold these securities and who would
so so' be complicated with the differ
~t e3 OF opinion and jealousies
paGn have existed IN the board OF
%s Us Danville company. This next manage
SeaI came into office last Friday, and l
c, AYE been actively engaged in telegraphic
SIrespondence with them. It is only last
gut that received information which
s,a ~. unts to refusal to take any immedi-
N aeIion upon the subject"
AFFIDAVIT OF THE DIRECTORS.
.le affidavit OF the directors is short. II
psmeae by Directors Alexander, Howell,
d,"-.1y and Harold, who, it is stated, we're
eStoIs in December, 1891, when the
va. W. Of the Danvllle company for SS000OO
a. uaue and Central securities demanded,
d." VINO are present IN Macon. The all
Ar, ar states tnet the board consented 10 an
,ss cement, which was made, bY whicn
fN Ga