The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-06-25

that al the security holders would cnbe
it,
There were certain bonds, Mr. Calhoun
said. among which were those of the Ma
con and Northern which had not beer
recognized in the appOrtionment Their
was a question Mr.. Conner said as Z,
| whether these were a legal obligation O
/ the Central as they had been endorsed
jointly by the Richmond ana Danville anC
the Central There was also a question
raised with regard 10 the validity of tn,
Savannah and Western bonds but they
had been allowed TO enter the plan, There
was no provision made
for the nOn-assenting security
holders except such as was set forth IN
the plan. and such as was 10 come from
the sale Of the road.
THE CENrRAL's CONTROLLING SPIRIT.
''You say the Terminal company domi.
mated the Central directorsln asked Mr.
Calhoun.
Yes, replied Mr. Conner, from SO to
| March '92 they controlled the majority of
the stock A letter was written here by
/ MIR. John Inman, which is now in the
possession of Col. Gordon. stating that
the directors would be expected 10 do as
! they were told
"What acts of domination did the
| terminal company cOmmiti'
"EOr one thing Mr.. Conner replied.
''Mr GabbettwAs appointed general mana
ger without conference with the directors.
! Gen. Alexander told me he appointed Mr.
Gabbett at the instance of youe brother
and yourself and that means the Ter
minal company, or 1 regarded it as such. "
Mr. Calhoun brought ont the facts that
! both he and his brother were at that time
directors of the Central, and that Mr.
Conner had opposed the appointment of
Mr.. Gabbett.
'And this is the only evidence of domi-
nation by the Terminal COmpanym Mr..
| Calhoun asked
MY recollection is" said Mr.. Conner
"that Mr.. Alexander did this after con-
! ference with several of the tetminal peo-
! pie who desire it,
Can you give another specific instance
| MIR. Conner" said Mr. Calhoun, "of the
| domination of the Terminal Company"
IL think ! can, Mr.. Calhoun - was the
reply. This contract with Holdings to
| sell S., 000, 600 Savannah & Western bonds,
and the demand of the Terminal to lend
| them S2,000,000 was another instance
| They had some power or other by which
they must get this loan or get $4,000 out
| of the proceeds from the sale of the bonds.
! This transaction may have been perfectly
! clean and straight, but there was much
! dissatisfaction over it among many men,
| bers of the board at that time.
wHATMR, CONFER THGUoHT OF MIR. CALHOUN.
| Mr.. Calhoun then referred to his tele-
| gram to Mr.. Conner, asking him to re-
| serve his opinion with regard to that
transaction until he heard his views, and
Mr.. Conner said that Mr. Calhoun had
never told him the facts of the transac-
! ton
"You looked upon me-" said Mr.. Cal
/ houn, speaking slowly and clearly, "as
the dominating spirit in Central affairs
at that time, did your"
81 regard you, Mr.. Calhoun" said Mr..
| Conner looking straight at the attorney,
''as the man who had more to do with the
| directing, shaping and controlling of Cen
trail affairs than any man living"
This seemed to satisfy Mr.. Calhoun and
! but little more was said upon this point
The peculiar part of the transaction, as
shown by the minutes of the directors,
was that the Savannah and Western
bonds had not really been sold to Hollins 81
| Co., according to the contract, but were
sold to John Inman at 80, as the minutes
show, and were then sold to Hollins & Co.
| by him at "a, the difference of $500, 600
going to the Terminal Company. The
| resolution that the offer of 80 made by
Mr. Inman be accepted, had been passed
as the minutes showed.
"These things, think, show DONNA
! ton by the Terminal company" said Mr.
ever, but as to that do not know"
| Just here the hearing adjourned until 4
O'Clock p, m.
THAT IRREGULAR TRANSACTION.
| At the examination in the afternoon
Mr.. Conner stated, as a further instance
of domination, that request had been
sent down that the Central keep an ac-
! count with the Chase National bank, in
which he understood the Terminal people
were interested.
"Was there any interference in the
management and operation of the prop
| erty," asked Mr.. Calhoun.
There were a great many things, !"
said Mr.. Conner, lin which this domina-
ton was shown / lam not familiar with
| all of them, but there were great many
| details in which it was shown"
"You think that the larger amount of
| cotton obtained from Augusta by the
| South Bound was obtained in an illegal
wayl" asked Mr. Calhoun.
If I've got to answer that question, Z"
said Mr.. Conner, II will say yes, il was.
l would rather not have that question
| put down that way / will say that
| special inducements were offered to OBJ
tain it. | did have witness here to
prove it, but he got away"
The testimony was modified and it was
put down by improper means, instead
/ VI llAOS2As NAA AOuACI lidA uOVllltO IIlG
president that it was going on and stated
that he wanted it stopped. There were
two lines together and he supposed there
! was an agreement between them.
II put the president on notice." said
MIR. Conner, that unless that thing was
stopped l would make it hot for them "
Didn't it occur to you that you could
stop it by withdrawing your terminal IA
! cilities2" asked Mr. Calhoun.
sit did, "rephed Mr.. Conner, ''but when
] notified the president of the matter it
was stopped and so far as l know has not
occurred since"
SAID THE CENTRAL DID NOT PAY.
The conversation between Mr. Cal
houn and MIR. Conner in New York was
referred to- Mr., Conner said he asked
that question of Mr.. Calhoun particularly
and had asked Mr.. Cunningham TO re-
member 1t. Mr.. Calhoun had said that the
Central could not earn it's interest and
fixed charges. Mr.. Calhoun had also
urged Mr. Conner, as he said, not to wage
war upon the Terminal company and said
that he thought the Central could earn
more in combination with the Danville
than apart from it.
Il remember as plain as anything said
| Mr.. Conner, "that you said that the prop
erty could not earn its fixed charges and
interest on the floating debt, but YOU said
you thought it could in combination with
the Danville and the Terminal Co. |