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

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WANTED THE FACTs.
tsNow. Mr.. Calhoun, let's get at the
facts. % said Justice Jackson. I'VE must
be cers..in about these statements"
II want TO get at the facts" said Mr..
1 Calhoun 81 want 10 show that the facts
in that statement are untrue. II is con-
ceded by all that this property was solv-
emit Jan 1, 1887 The insolvency has been
occasioued since that time by two causes:
uniustifiable debts and the running down
of the property"
Mr.. Calhoun then went into this demon
stration from the records and reports Of
the company.
'Air Calhoun" said Justice Jackson,
'we have reports here up to March 4,
1892 Do, or do not, the records sustain
these repOrtsl'
i think l can show they do not" re-
plled Mr. Calhoun
you say nisstatements have been
made by the receiver" said Justice Jack
son. Come to that"
Mr.. Calhoun: "Your honor will notice
that there is no clear statement of how
the cash received was expended. There
were 204 miles of rail laid on the main
stem during that five years, costing 1890
per mile This property then during that
| fiVe9years was practically rebuilt. Where
did their money come 'FRONT.' 1t could only
have cOmefrom the earnings from the
! property as / have shown 1t did not come
! from borrowed money. We are not left
! in doubt on this subject. In 1891 the OPP
Grating expenses reached rs per cent Of
the gross earnings. The receiver had q
| statement of what had been done from
| President Alexander during that time.
! The books fully sustain this statement"
Mr.. Calhoun then read statement to
! show the increase in the equipments I'M
! der Gen Alexander's administration.
1naI hoo .uftff
! cally rebuilt he said ut was in good
condition with the exception, maybe, of
| crOssties, on March f. 1892 One hundred
and twenty miles of side tracks were laid
during that time. Now the receiver has
tried to create the impression that this
large disappearance of money has been
due to putting in new eqipments."
HAD EXAMINED THEM HIMSELF.
''Mr. Calhoun" said Justice Jackson,
otis proper for the court to state to you
that the court has gone through reports
of receiver. see that you have omitted
an exceedingly essential fact that is
that from 1887 to March, 1892, the debt of
this property was increased from So. 000,-
900 to nearly $4,000, 000 You must take
this into consideration If you say that's
not true, show wherein it consists"
Said Mr.. Calhoun
MY purpose is to demonstrate that the
this property to be in a most deplorable
shape Let us assume that all this money
was uselessly invested. That would not
affect the earning capacity OF the property.
Give him a credit for all those new roads.
His reports show he paid out on those
properties more than they show In their
earnings. The net earnings now would
not pay the fixed charges as they existed
even in 1887
''Since the receiver came in, the prop
erty has gone down to practicallyno earn
ing capacity. There must be some mis-
management where suchia record appears
He says this property has not made eX-
penses."
HE CONSIDERED THE FINANCIAL sIsUATIoN.
At the suggestion of Judge Speer Mr..
Calhoun said he thought the general de-
pressing financial condition of the country
shruld be taken into consideration and
that the receiver should be given the ben
eft of it.
is it not an important fact,p he said,
''thnt the main stem is all now in new
rails2" When the receiver furnished a
statement to that committee 1t was
either untrue or the report of
Gen. Alexander was un-
true and subsequent reports are untrue
l will show this from the testimony All
the money borrowed went into the COM
mon fund and there is no way to tell
what money went for operating expenses.
The net earnings for this property for a
period of years had varied from 80 ,364,-
600 to 81, 800 900, which was the highest
figure, s., 1868, 900 being the lowest
Judge Speer: SIS it not true during
that period money was borrowed to pay
its dividends}"
Mr. Calhoun: "I deny it, If it can be
shown that up to July 4, '92, the property
made its operating expenses and divi-
dends, there must have been something
since that time to have wrecked it as it is
to-day. From AS7 down, enormous addi-
tions were made to the property 1t is
now nothing like what 1t is represented
| to be. 1t is shown that you can now run
train at the rate of fifty-three miles an
hour with perfect safety. The hands
have increased fifty per cent in number,
| and there has been a decrease of earnings
and steady increase Of expenses The
receiver let it go to the world that the
only improvements made were made be-
tween 1887 and 1892.
NOT A CRIME.
SIS it a crime" said Justice jackson,
"that the receiver kept a large equip
ment account under the head of operat-
| ing expenses, as it is kept under the other
Oficials2 Do you call this mismanage-
ment2 True, his report shows that his ae-
counts include equipments and improve
| mentS under the mead OF opera Ting GSpen-
SEES were much higher than they have
been under the receiver. Do you charge
mismanagement because accounts have
been kept in that way 1t may have been
| a mistake, but it has often been done
"1he court does not get my point, . said
| Mr.. Calhoun. 81 claim that this state
| ment is misleading. If the general condi-
tion of heproperty is such as we say this
record makes it to be, then it was his
duty to have investigated the facts and
to have put them before this court and
the security holders.
CHARGES OF PARTIsANsHIP.
"The committee has thrown up the
plan of reorganization. NO intelligent
men could form one on the statements
furnished. The receiver has been an ac-
tive partisan of this plan. He says the
reason he went into that plan was to pro
tect the securities held by the company
The company would be entitled to about
one-fourth of the proceeds of the sale OF
the Savannah & Western Railroad All
these securities were showed into the re.
organization plan, and no provision was
made for non-assentlng security holders
We would have received none of the bene
fit from the securities owned by the com.
pany which would have gone into this
plan.n
Suppose the Hollins scheme had gone
through" said Justice jackson, :do YOU
| mean 10 say that YOU would have beer