The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-06-30

!
the Wadley Drawbar Company was incor-
porated by officials of the Central, and
that the former purchasing agent had
been taken into it, Those very men from
whom acquisitions for material come are
members of that supply company.
Judge Speer; Does it appear that
this company furnished the road with
anything?"
Mr.. Calhoun said they had not so far
as he knew, with the exception of the
ebert
Judge Speer mentioned q telegram he
had sent the receiver, ordering him not
to purchase any supplies from this COM
pany
THAT SOUTH BOUND QUESTION.
Mr.. Calhoun next took up the question
of the South Bound railroad and its rela-
lions to the Central and the receiver
which was dewitt upon so long in the evil
dence. The contract under which the
South Bound uses the Centrals termi-
nails was read for the entertainment of
court. Mr.. Calhoun discussed the evil
dence in regard to cotton shipments from
Augusta to Savannah by which the
South Bound had obtained more cotton
than usual in 1891, while the Central got
less.
"The receiver said Mr.. Calhoun,
"swore he expected that something i'm
proper was going on, but he didn't get the
proof of it until two months ago, when he
notified the president of the South Bound
that these transactions must be stopped,
and that he did everything in his power
to have these illegal actions of the South
Bound stopped. -
Mr. Calhoun referred also to the differ
ences between the two roads in regard to
transfer charges as provided in the char
ter. In regard to the cotton, MIR. calhoun
thought the use of the Centraps terminals
| b1- hp South Round Ghn1I1H
stopped when it was found 1t was acting
| Illegally.
'EYou find fault with him for not hav-
ing made this contract with company in
which he wns interested2" asked the
| court.
@The South Bound" said Mr.. Calhoun,
was competitor of the Central and
our complaint is that he didn't terminate
this use of his terminals. "
"And you say he investigated those
chargesl" inquired Justice jackson.
Eyes, sir" replied Mr.. Calhoun, latter
the South Bound had brought down more
cotton than the Central" In conclusion
Mr.. Calhoun said:
eve ask the court, now that the dun
summer season is coming, to appoint some
capable man either as receiver or as CO.
receiver, that confidence in this property
may be restored"
GENERAL CHANGES NOT SUSTAINED.
At the conclusion of Mr.. Calhoun's ar
| gument, Col N j. Hammond, who has
been cooked and primed for the last
month, having given the case full and
careful study, and who was ready to
jump heavily on Mr.. Calhoun, arose and
addressed the court
MIR. S. B. Adams, too, was ready for
the fray as he has had an opportunity of
studying Mr.. Calhoun's movements, and
was ready to flank him on every side.
The court, however, had evidently
made up his mind that even the opposing
evidence did not justify the passing OF
any such motion, for when Col. Hammond
arose, Justice jackson turned to him and
said: 81 do not think it is necessary to
hear counsel for the receiver"
THE RECEIVER NOT RESPONSIBLE.
Continuing, Justice jackson said: "I
do not think it would be just or proper to
hold the receiver responsible for the con-
dition Of this property in which he found
it in July, 1892.
1.-THE statements Of counsel and these
reports do not show that there has been
any intentional misstatement or misrep-
resentation by that receiver, So the gem
eral objection That he has not represented
it correctly is, think, not sustained.
AS TO SPECIFIC CHARGES.
''Now, coming to the specific instances
of mismanagement that are charged
against him:
First, in reference to the purchase of
lumber through brokers of this city. who
bought the lumber at one price and billed
it to the Central company at another and
larger price. That seems to have been
done, or permitted to be done, by an
agent, through whom a receiver as a
railroad manager or directory must act,
and as soon as it came to the Knowledge of
Mr. Conner, he discharged that agent. Is
it possible, gentlemen, that a railroad
director, or officer of this court is to be
held responsible for the fraudulent act or
misconduct of a subordinate in q system
likeuthis, of twenty six hundred miles,
where personal presence and actual in
spection day after day of every agents
: action is a physical impossibility.
TOO GREAT RESPONSIBILITY.
'sWhy if that principle applies to the
president and directors of railroad cor
porations it would be a responsibility that
they could not meet. 1t would be to
charge them with the acts of misconduct
, of agents here and there A ticket agent
! might commita fraud, might commit an
) act of enlightenment from day to day for
3 a series of days. Is it TO be charged that
the receiver is responsible for that,
because he does not discover IL at the
moment, when as soon as he does discover
5 il, he removes the agent that is engaged
3 in itl That does not show mismanage-
ment. That does not show corruption or
? want of diligence upon the part of the
receiver. Thousands of agents, suppose,
{ he has over this large system of twenty
six hundred miles. Why, it would be a
0 physical impossibility for him TO super
. wise the daily transactions of
S every agent under his employ
t ment, and 1t involves no charge of
mismanagement that these corrupt acts
of a subordinate will take place and run
on for time before he discovers it, He
would be criminally responsible if, with
his knowledge, he continued such agent,
!, but until he within a reasonable time dis
! covers, such misconduct on the part of his
subordinates he is not be held responsible,
and the charge of acts of mismanagement
! in the first specific charge alleged against
him in respect TO the lumber purchase is
not well taken.
AND THE ebert MINES TOO.
J. 'fThe ebert mine near CHATTANOOGA is.
q as understand it. purchased and owned
t by the Wadley Drawbar Company. He
a has given a rate on that in order to intro
, duee it into the market, which is charged
S to be too low. | do not know how the
e fact is, but he is evidently seeking to get
freights for the concern.
g I'm reference to the Drawbar COMPANY.
Il the court will say that the receiver should