The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-06-09


ences. lam willing TO put securities in escrow.
Board meets tomorrow.
"E. P. ALEXANDER, President"
To which Mr.. Calhoun replies:
"Swannlinforms me Thomas directly repu-
dates statement that he agreed for you to put
stock in Central Trust Company, and now de-
clines to let Richmond and Danville pay any
money unless this stock is given as absolute
security. II is very important that you should
come here by first train"
This gentlemen again telegraphed President
Alexander on Dec 80:
Am arranging to take care of payments to-
morrow" (the last day on which the payment
can be made) with leading banking house.
Get authority to give security for loan TO pay
our Central nxe1 charges Don't turn over
steamship stock to Danville until you hear
again. PAT CALHOUN"
To this telegram President Alexander replies:
SAVANNAH, December 80. '91.-Our board
will positively not give securities to Richmond
and Danville pending adjustment OF acco ants.
The responsibility entirely theirs We repudi-
ate it Need 800, goo. IL caunot borrow that
no use borrowing. but wait arbitration which
can be forced soon. Speyer's consent necessary
to borrow. This amount does not include Cen
trail dividend to Richmond and Danvile"
On the same date Mr. Calhoun teegraphs
President Alexander:
"Danvle executi e COMMITTEES positively de-
clines TO advance any more money unless Cen
trail puts up steamship stock to secure further
advances. Rutherford has Instructions 10 wire
you result of action. Your board should au-
thortze you Immediately TO borrow the money
necessary TO meet your maturing obligations,
either from Richmond and Danvilie or from
any other source. All the Central directors
here have stated this action of Danville is clear
brt ach OF lease, but in position
where we have got to face default to-mor-
row or provide for these payments. In this
view there is nothing left for US to do but TO
take care of our interest and rental obliga-
tons"
The court will not further pursue through
this lengthy telegraphic correspondence the
almost frenzisd efforts of the president of the
Central Railroad and Banking Company to pro
tect his trust, and at the same time to prevent
default upon the obligations of the Richmond
and Danville to it The following telegram,
however, from John H. Inman, of Dec. Soth,
will be serviceable:
L strongly advise you have your board meet
Ing early in the day tomorrow, and that you
get fuil authority to borrow on your I'M
pledged securities sufficient money to meet
the Centrals fixed carges and obligations Jan.
/. Show this to H T. Inman and Howell and
ask them to support it. | heartily condemn &c
lion of Richmond and Danville executive com.
mittee in declining to stand up to terms o.
The next word is obscure, but it must mean
lease 1t would not have occurred, but for my
two weeks illness. am still unwell but may
John Fl. imam"
John H Inman, it appears from the record,
was the president of the Richmond and Dan
vile company, and his condemnation of the
action of the executive committee is not with
out its significance. On the same date Gen.
Samuel Thomas restates the position Of the
executive committee in the following telegram;
Cen l.. +. Alexander, SdUdunIh.
Your dispatch and letter received. The posi-
ton of the Danville board is that they have al
ready made large advances 20 the Georgia Cen
trail as shown by their books, over the receipts,
for which they are entitled to securities
your treasury. They offered you
money co pay your dividend and all your
charges, If you would furnish collateral to Sc
cure them. This understood you refuse to do
This leaves the responsibility of default upon
you and your board. The officers OF the Rich
mond and Danville company cannot use the
funds of that company except in accordance
with resolutions of the board and business prin-
clples. II you desired the payments made it
was only necessary to have placed the steam
ship stock collateral for the advances. 1
urge upon you that it is your duty to do 1t
promptly. telegram from you TO the Cen
trail Trust Company is all that is needed
SAMUEL THOMAS"
In view OF the terms of the lease it is impos-
sible for the court to perceive any merit in this
statement There is nothing in the contract of
lease which justifies the Richmond and Danyille
COMPANY in insisting that the receipts from the
leased lines snail equal or surpass what Thomas
calls Large advances nor is there the slight
est color for his claim to the securities of the
Central The dividends and the charges were due
from the Danvllle and not from the Central
The Danvle took the property az running
road" and agreed to assume and settle all
running accounts of operation without
other exception or qualification and
TO take all balances which might be due. In
| addition the Danvills agreed TO pay all charges
and dividends. and we find that Thomas is in
that the Danvtlle need only make these pay
ments il the Central will provide for them by
depositing collateral securities 1t appears,
however, that the Richmond and Danville
executive committee was in entire harmony
with Thomas in his views. The following reso-
luton was telegraphed on Dec. 80 by Rauh to
Alexander:
''WHEREAs This company has advanced to
the Central Railroad of Georgia over 100000
for bills and accounts contracted prior to June
/, 1891,
RESOLVED, That the vice president be and he
is hereby instructed to make no further ad
vances unless the New England and Savannah
Steamship stock is deposited with this company
to secure such further advances. with the
privilege of using said stock, in providing for
such advances"
70 this Alexander replies;
please Immediately inform executive
committee that this company denies that
the amounts referred to are chargeable
to this company under the lease. ex-
cept the one item, Mobile aud Girard extension,
one hundred and twenty thousand, against
which the company has claim admitted in No
vember by your auditor of about equal amount
All other items are chargeaole TO lease under
article 16 This company demands earliest pos
sbe arbitration of this question. 1t also claims
that lessee has no right under lease or In equity
TO demand possession or use OF these secur ties
pending arbitration. 1t has already agreed to
hold or put securities in escrow and now renews
the offer. Arbitration can be had Immediately,
steamship stock being meanwhile placed at
disposal of arbitrator.
az. P. ALEXANDER, President
And to Thomas he again telegraphs:
LAS this company denies its liability for the
advances referred to under the plainest pro-
visions of the lease, it is entitled TO an arbitra
ton, which it has already demanded 1t has
repeatedly offered to put security in escrow to
abide result of arbitration and now renews the
offer. It would be in violation OF terms of
lease and of business principles to surrender
securities in advance of arbitration. We might
not be able to recover them.
W P. ALEXANDER. President"
1t now appears from the correspondence that
the resolution of President Alexander TO pro
tect the securities and to insist upon the terms
of the lease had its effect. We find that on Dec.
81 Samuel Thomas telegrephs him as follows:
''YoCr last offer, WITH reference to placing
stock in escrow, is accepted. Your kilograms
and letters will be deposited with Mr.. OlcOtt.
SAMUEL THOMAS"
This telegram was received by President
Alexander, at Savannah at 1920 a. N. At
l:35 p. m, a telegram was received from A. J.
Rauh, assistant secretary;
II am directed by the executive committee to
say that your agreement in telegram of yester-
day to this committee to put the securities in
escrow at the Central Trust Company is
accepted, and on receipt of this wire them to
the effect that the stock is to be held in escrow
pending settlement of the accounts and ad-
vances between your company and the Rich
mond and Danville. Wire both Central Trust
Company and me your answer Immediately
Executive committee have also directed that
your interest aud dividend payments will be
met relying upon your compliance with this
agreement.
"a. J. RAUH, Assistant Secretary"
To which President Alexander replies:
Your message received. Two hours ago. on