The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-06-25
TERMINALS DOMINATION.
M. Calhoun The Controlling Spirit in
Central Affairs.

South Bound Hauled More Cotton as
the Result Of an Improper Transao-
tion-why Mr.. Rabbit Resigned.
Mr.. Mackall Asks Some Pointed
Questions for the Terminal.
The Central railroad examination
proved of a somewhat more highly in
teresting nature yesterday than any of
those preceding in that it brought out
some little feeling between Mr.. Calhoun
and Mr.. Conner in regard to certain points
and transactions relative to the Centrals
management during the last few years.
There was very little that is new in the
substance of the testimony, except per-
haps the particulars of the sale of the
Savannah and Western bonds, with
which the public generally are unfamil-
lar, but added interest was given to the
proceedings by the manner in which the
testimony was brought out.
Receiver Conner was the only witness on
the stand and Mr.. S. B. Adams opened
the interrogations for the Central rail-
road The Wadley Drawbar Co. was
again brought into the discussion, but
MIR. Conner gave practically the same tes-
timony with regard to its transactions
with the Central as did Mr.. McNeely on
the day before.
AN IRREGULAR RAILROAD TRANSACTION
Mr.. Conner stated in answer to interro-
cations that he was president of the
South Bound railroad at the time he was
made receiver of the Central and remained
so several months before he resigned.
aHe was interested in the Savannah Con
struction Co. which owned the stock of
that road. In answer to interrogatories
Mr. Conner stated that he had shown no
favOritism'tOwardst that road. He went
on to say:
There is a reason why the cotton bust
ness of the South Bound from Augusta
has increased, but l would not like to
state what it is. 1t was an irregular
transaction and in violation of the inter
state commerce laws, at least that is my
information. Ididnot see the transaction
made and would not like to state what it
was"
Continuing Mr.. Conner said he and Mr..
Denmark had had several discussions and
some rather sharp talks in regard to
what Mr.. Denmark considered were dis
ordinations against the South Bound
road. He had always held to the con-
tract strictly.
"I understand said Mr.. Conner, "that
Mr. Denmark says Mr.. Wadley is the
L
next
THE TERMINALS DOMINATION.
Just here the point began TO enter the
testimony which gave it added interest.
Mr.. Conner was explaining the transfer Of
stock by the Georgia Company to the
Terminal people He said he had not been
connected with the Georgia Company,
however, and knew very little about its
affairs.
The Terminal people, he said, began to
dominate the property sometime in 1888
by getting control of the Georgia Com
pany Mr.. Mackall objected to this
unless Mr.. Conner was positive
as to the domination by the
Terminal. Mr.. Conner was positive
and the objection did not hold. just here
several statements were recorded concern
ing the floating debt in 1887, as compared
with what it was in March, 1892, showing
an increase of over $4,000, 600 without a
prOportiOnate increase in the mileage.
During the control by the Terminal the
debt had been increased by over 81, 100000.
When the Terminal took charge in 1889
there was a verbal understanding that the
directors would take charge and manage
the property. Later some misunderstood
ihg occurred, and before the next election
a demand was made tnat some questions
Of policy should be submitted to the di-
Aectors, whereupon the directors were
4otified that they would be expected to
DO as they were told, and the directors
declined reelection. During that time MIR.
Pat Calhoun was counsel for the Central
a director in both the Central and the
Terminal, and was regarded as the con-
trolling spirit in Central railroad affairs.
Il had several talks with Mr.. Calhoun
about the Central, in New York" said
Mr. Conner He stated to me there, in
the presence of Mr.. Cunningham, that he
didn't think the property could earn its
fixed charges and interest on its floating
debt. Mr.. Speyer also told me that when
his contract was made it was with the
understanding that the entire property of
the Terminal company together with
that Of the Central, was to be reorgan-
lied. This Speyer contract, / under
stand, was negotiated by Mr. John c.
Calhoun, who asked TO be paid for con-
tracing it.
THE SAVANNAH AND WESTERN BONDS
The interesting part OF the discussion
was involved in the Savannah and West
ern bonds Gen. Alexander had made Il
contract with Hollins ~ Co to take So
600, 900 of these bonds at 95. less commits
sion, or "a net. When the bonds were
sold there was a difference of SOC, 200 in
the contract price, and the price the Cen
trial received for them. This money had
gone somewhere, but where Mr.. Conner
did not know, and had not been able to
determine
The day after the directors met. Mr..
Conner had received telegram from Mr..
Calhoun in cipher, asking him to come to
no determination with regard to these
Savannah 81 Western bonds until he had
an opportunity to be heard on his finan-
cial plans.
H'Mr Calhoun" said Mr.. Conner. chad
advocated loan of s., 600, 900 to the Ter
minal company ! understand that the
board objected to the loan They were
given the alternative of making this loan
and getting "a for the bonds or not MAX
ing the loan and getting 30 for them,
making a difference of 5000, 600 The bonds
Melted the road only 80 as the books
show"
Mr.. Conner then went on to state that
MIR. Calhoun had offered substitute for
a resolution at that meeting of the direc-
tors, that the loan of 81 10000 to the
Terminal company be made and the bonds
sold at "a. The substitute was lost and
the original resolution authorizing the
sale of the bonds at 80 was passed.
CALHOUN on THE REORGANIZATION PLAN.
After little discussion in regard to
the reorganization plan and the Savan-
nah and Western not being able to earn
enough to pay It's OBLIGATIONS, MIR. Cal
noun began his cross examination He
began by few general references to the
reorganization plan and made an attempt
TO show that the receiver had manifested