The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-12-28
SOUTHWESTERN'S MOVE.
The Directors Vote to Take the Road
Away From the Central.

OSC%A W D6 4AGd6GA w Jn6 60OuGnW06t-
ern From Some Connecting Road.
Provision Made to Take Care of the
Roads Obligation Under the Tripar-
tite Mortgage.
Macon, Ga, Dec. 27.-At the meeting of
directors of the Southwestern railroad
held to-day at the Office of the president
of the company, DIR. j. S. Baxter, it was
formally decided that in future the road
would be managed by the stockholders of
the Southwestern, and not by the Central
railroad.
1t will be remembered that last July
Justice Jackson, in Savannah, directed
the receiver of the Central to report what
lines leased by his road had, in the last
twelve months, failed to show net earn
ings amounting to the interest on their
bonds.
The Southwestern was one of these
roads which was reported as having
failed to earn the necessary amount, and
it was rendered back to the stockholders
The directors decided to allow the Cen
tral to continue holding the road and
operating it, but yesterdays meet
ing was called for the purpose
of considering proposition TO take back
the road for the stockholders. Not only
this, but the directors propose to obtain
control of the Mobile and Girard railroad,
thus giving the Southwestern free access
to the north and west by the Louisville
and Nashville railroad. At the
meeting of directors the full board was
present, and was made up as follows:
President John s. Baxter, w. G. Raoul,
l.. A. Jordan, w. Il. Cox, H. M. Conner,
John A. Davis, A. r. Lawton and George
J. Mills.
THE RESOLUTIONS.
Following are the full resolutions as
passed.;
/. Resolved, That the president of this COM
pany be, and is hereby authorized and in
structed to adopt the necessary measures and
take the necessary steps to have this com
panys railroad delivered to its board of di-
rect1rs, and the discretion is left with the
president to agree with the receivers Of the
Central railroad as to specific date in the
| future at which transfer can be made with
the least disturbance of business and the
president is further instructed to take such
steps as may be proper, under advice of cOun-
sci, to collect whatever may G due from the
Central Railroad and Banking Company Of
Georgia to this company for account of rental,
and all other sources Of Indebtedness under
the lease.
| 2. Resolved, That the president proceed to
| create an organization suitable for managing
the business OF the company and operating
| its road and pursue the matter with view
| to making the said reorganization complete
and effective by the date that may be agreed
upon for the transfer of the road TO the com
pany.
g. Resolved, That the president open nego-
tlations with the receivers of,the Central Rail.
road and Banking Company of Georgia for
the lease or rental Of the necessary number
OF cars and engines with which to operate
the road, either upon the basis of fixed sum
per month, or upon a mileage basis, with
view of said arrangement remaining in force
till an adjustment Of the affairs of the two
companies can be had, and thus avoid the
purchase Of stock that may create surplus
and thus depreciate the selling value
of that which is now owned
and ordered to be sold under Judge Jackson's
decree. Failing in this, the president IS au-
thorized to treat with other connecting roads
for rolling stock, or to purchase the same on
the car trust plan, or to lease the same or
secure the necessary stock in part under one
arrangement and in part under another as
may seem to him advisable, using any funds
in possession of the company from net earn
ings or from the proceeds of any bonds that
may be available therefor, to make the first
payments should all or any part Of said rolling
stock be purchased.
4. Resolved, That it is the purpose of this
company to provide the funds necessary to
meet any liability that may upon final de-
ciston be adludged against 1t upon the so
called trtparttte bonds and that it is the
further purpose of this company If feasible,
to secure ownership or consolidation with the
railroad Of the Montgomery and Eufaua Rail
way Company and the railroad Of the Mobile
and Girard Railroad Company or either Of
them. both now in default, and against which
foreclosure proceedings are pending and
with view Of providing funds for these un-
dertakings and for the equipment of rolling
stock.
5. Resolved. That the president and treas.
uref of this company are hereby authorized
and directed to make execute and deliver to
a trust COmDauV of New YORK To he plpctp1
by the president as trustee a mortgage or
deed of trust of the railroad, rolling stock
equipment franchises and other property OF
this company, to secure the payment of an
issue Of not exceeding $1,000 600 Of first mort
gage bonds Of this company, which said bonds
the said president and treasurer of
the company are hereby directed to
make and execute. The said bonds are to be
made payable fifty years after date In gold
coin of the United States Of present weight
and hneness, and bear interest meanwhile at
the rate of not exceeding per cent per an
mum, payable semi-annually, in like gold coin,
aud the mortgage shall be so drawn that in
the event OF either or both the Mont
gomery and Eufaula railway and the
Mobile and Girard railroad being &C
Qulred by this company, by purchase or
consolidation of the said roads, with all their
right and appuT tenances, free from all other
and prior liens and Indebtedness, will be
made subject to said deed Of trust, and liable
for the bonds issued hereunder
Two million. seven hundred and fifty
thousand dollars Of said bonds shall be appro-
priated TO provide for the Indebtedness Of
This company. that may be found to exist
upon the tripartite bonds after the final de, IS
ion of the case, ana to pay for equipment or
Letterments and in the event OF there being
no such Indebtedness then all Of said 81, $50 001
of bonds executed for this purpose shall not
be issued or certified. but shall be cancelled
and made void except IL 100000, which said
SlCO0O0O Tor so much thereof as may be
needed), shall be used TO pay for equipment
and for betterments and additions to the
property covered by the mortgage securing
said bonds.
And 81 900, coo Of said bonds shall be appro.
priated to provide funds for the requirement
OF the Montgomery and Eufaula railway and
same and in the event OF that road not
being acquired free from incum0rance then
said 81 600 900 of bonds appropriated for this
purpose shall not be issued or certified. but
Shall be cancelled and made void 81 250,0J0 OF
the said bonds shall lie appropriated TO pro
vide funds for the requirement Of the Mobile
and Girard railroad, and TO pay for equip
ment or betterments on the same, and in the
event Of that road not being acquired free
flom incumbrance, then said 81 900 OF
bonds appropriated for this purpose shall not
be issued or certified, but shall be cancelled
and made void.
8 Resolved That the president Of this
company is hereby authorized 10 negotiate
with the holders Of the present defaulted
bonds Of the Montgomery and Eufaula rail
vay and the Mobile and Girard railroad. for
the purpose of the purchase or exchange OF
said bonds prior to the foreclosure sale, and
TO secure such Of them as he may be able 10
Z, Resolved, That the president OF this com
many Is hereby authorized to bid not exceed
ing par and interest OF the deiaulted bonds OF