The morning news., 1892-03-07
TIE CENTRAL RAILROAD Lease.
Some Facts With Respect TO II By
Ex-Auditor Thompson

soms Facts With Respect to It By
Ex-Auditor Thompson
SAVANNAH, March 5.-Editor Morning
Nstcs: Reading the decree of Judge Speer
in this mornings paper and the appoint
ment of a temporary receiver for the Gen.
tral, and your editorial as to whether the
lease could be broken, induces
tion at this time, when so much
interest is felt In the matter, a few facts
connected with the lease, ard certain incl
dents occurring last year just after the lease
had been consummated-
About Aug. 20 Mr. Edward McIntyre.
controller, with several other officers Of the
Central railroad. was called to Washington
city ION business of the company" That
business seemed to have been principally TO
inform him that certain officers Of the rail-
road had been abolished myself among the
number) and that the Richmond and DAN
vile railroad would run or operate the Gen.
tral railroad under the management of one
of its own officers, Mr.. Green.
One after another Of the old Central rail-
road officers and heads of departments were
removed, and at last the remaining clerks
were sent to Atlanta. The old office build
ing was completely gutted safes, furniture
and everything movable sent to Atlanta.
Long before the departure of these clerks
and the removal Of the Office furniture,
books, etc., the creditors Of the Central rail-
road were clamorous for the payment of
their bills. Crossties, lumber, ma
terial and machinery for repairs of road
and rolling stock, commissary supplies
nothing was paid that could be put off
and delayed. Many q small firm had to
borrow money at a heavy interest, while
others went to the wall, ruined
was still endeavoriDg to maintain the credit
Of the company by assuring the mer-
chants and other creditors that "as
soon as our accounts were transferred and
new books and blanks secured, we would
pay their bills" As / wrote to Mr.. Pat
Calhoun, " l was deserving OF pension for
bolstering their credit so long, feeling, too
that was lying all the time by order Of
higher authority.
MIR. Mcintyre and did manage to pay a
great many bills that otherwise might Rtill
be due, and while l was assuring the cred-
itors that in "a few days" everything would
be adjusted, Gen. Alexander was assuring
the press and the people that this lease was
''the greatest thing in the world" for ,
somebody-not Savannah
Mr.. Mcintyre having resigned his posi-
ton as controller, wrote the following let>
ter to Mr.. John II. Inman, president:
"A
AUDITOR DISBURSEMENTS OFFICE,
SAVANNAH, GA, Sept. II, 1891.
PersonaLl
J. n. InmGn, Esq, Neto York:
DEAR SIR-Fifteen years ago was appointed
auditor of this company.
Now that Mr.. Mc1ntyree has resigned, l feel
at liberty (as the neat officer in seniority Of
rank, service and experience in the accounting
department)ro write and say plainly that you
have, perhaps, gone too far with this abolish
nent" business.
You may need the friendly aid and services
Of some Of those abolished" before we all get
through.
My duties as auditor have been Of varied
character. with SIX clerks. 1have paid all the
bills OF the Central railroad system, and kept
the detailed expenditure accounts with our
seventeen railroads.
Certain bills we must continue to pay in
Savannah; certain accounts we must continue
TO Keep as Kept before My suggestion
would be mot in my personal in
tertst at alb that you allow my
department to remain just as 1t stands at pres
ent, paying the bills and keeping the accounts
as heretofore, not changing the classification Of
expenditures from the standard accounts of the
United States Interstate commerce commission,
as that would produce interminable confusion
IN reducing the one hundred and six accounts
(as used by the Richmond and Danville railroad
into the fifty subaccounts OF the interstate
commerce commission.
We have succeeded in getting.the states Ccom-
mlssions), of Georgia and Alabama to
Cstandard) and as we have to make
monthly reports of our earnings and expenses
70 several of the states as well as to the
United States commission yearly, il becomes q
matter Of some importance as TO how our ac-
counts are kept.
The clerks who have left the office OF the
controller and my office and those who contem-
plate leaving cannot be easily replaced. When
men acquire the experience they possess il is
difficult or impossible to fill their places.
For certain and weighty reasons which you
FaRtfr 1n..N Ls..N- A.
the Central railroad system had better be kept
as separate and distinct as possible. l am not
an indiSpe nsable man, no man In any position
is altogether indispensable, yet there are some
men whose servic and experience are almost
indispensable. Trusting you will weigh and
consider my proposition, advanced only as
suggestive, ana favor me with reply as soon
as convenient, am, sir. yours truly.
f. H. THOMSON,
Auditor Disbursements.
Being one OF "the abolished by ord of
General Manager Green, have only to October
list to set my house in order"
cannot go to Atlanta.
No reply was vouchsafed TO this letter, as
presume it was considered OF the type par
taking of 'pernicious activity"
Last October some Of the minority stock,
holders and myself privately obtained the
opinion of one of the leading lawyers Of the
state upon the question Of the lease, and be-
low is copy Of the document he handed to
INC, WHICH ne assured me could De served
upon the president and board Of directors
with the request that they take immediate
steps to have the lease abrogated:
To the President and Directors of the Central
hditrodd aud BANKING Company of Georgia:
WHEREAS, By the terms of an "indenture
made and entered into the first day OF June, in
the year OF our Lord one thousand eight hun
cred and ninety one. between the Central Rail-
road ana BanKing Company of Georgia and the
Georgia Pacific Railway Company" entitled a
tease OF the Central Railroad and Bank
ing Company to the Georgia Pacific
company, whereby the said Georgia Pacific
Railway Company In article sixteenth, section
OF said lease, obligated itself to assume and
settle all running accounts of operation, salar-
les; wages supplies car, mileage, freight and
Ticket balances providing for its cur
rent and other expenses" E" and as the said Geor-
ga Pacific Railway Company has violated this
particular and most essential part of the lease
ana contract, inasmuch as it has not paid the
Aforesaid running accounts and sundry bills for
supplies and car mileage and ticket business
uue TO sundry individuals and railroads, and
continues to refuse payment OF the same
ana has utterly failed TO pay these
Jus. accounts for the past twenty days, having
nae Hso suit brought against them in the courts for
tne non-payment OF these bills, and the power
from tie proper disbursng officer of the Central
SSalroad and Banking Company his Office in
savannah having been closed and his duties in
Taat at respect transferred to the treasurer Of the
Mchmond and Danvile railroad Ia corporation
n9I known or connected with the lease), and to
nuich said treasurer all the revenue of the
central railroad has been sent, thereby further