The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-01-31
THE CENTRAL TO FIGHT.
A SCHEME TO wRSsT THE PORT
ROYAL AND AUGUSTA FROM 1T.

CeiVerShip was Credte0-Ine Fer-
ties Believed to be Behind the
Scheme - The Reorganization Plan
Not Affected.
The question whether the Central rail
road will control the Port Royal and Au-
gusta Sin the future will be settled in
the courts. Col. J. II. Averill Of Summer
vile. S. c., made a formal demand upon
President aud Receiver Conner Of the Cen
trial railroad yesterday for the delivery OF
all the property and assets Of the Port
Royal and Augusta railroad to him as re-
ceiver.
Col AVerill, as announced in the MORNING
NEWS. was appointed temporary receiver Of
the Port Royal and Augusta railroad by
Judge James Aldrich of the Second circuit
court of South Carolina on ahearing before
the court of common pleas at Aiken last
Friday. Col. Averill made his demand in
writing. The following is q copy Of the
demand:
The State Of South Carolina, County of Beau
fort-Court OF Common Pleas. II. b. King ct
al, against the Port Royal and Augusta Kali
way Company, Demand,
To II. NJ. Conner, Esq:
DEAR SIR-In accordance with the Instructions
TO me, extended by an order OF HIS Honor
James Aldrich Judge Of the Second judicial
circuit in and for the state OF South Carolina,
in the above entitled cause, dated Jan. q, 1893,
a copy of which said order Is hereto annexed,
do hereby demand of and from you possession
of al and singular the property, franchises and
effects of the said defendant, the Port Royal
and Augusta Railway Company, aud demand
that you forthwith surrender and deliver the
same to me, John H. Averill, the duly appointed
temporary receiver of the said railway com
pany, By an order of His Honor Judge Aldrich,
dated the nth day of January. 1898. in said
cause. JOHN II. AvERILL,
Jan. q, 1898. Temporary Receiver,
REFUSED TO DELIVER THE ROAD.
Mr.. Conner refused verbally to turn over
the Port Royal and Augusta railroad to
Col Averill or 70 recognize him as receiver.
Attached TO the formal demand was copy
of Judge Aldrich's order appointing Col.
Averill as temporary receiver, and setting
Saturday, Feb. 4, for hearing of the case.
In case the receiver of the Central should
refuse to turn over the property to him,
Col Averill is directed TO take steps in the
United States circuit court TO establish his
authority.
A copy OF the bill which the oomplainants
brought before Judge Aldrich in Aiken, and
upon the hearing Of which the temporary
receiver was appointed, was served upon
Mr.. Conner yesterday.
The bill is voluminous, covering twenty
eight pages OF typewritten matter. 1t is
brought by Henry b. King OF Augusta,
and David Kohn, Edward Topper and Will
lam NJ. Kohn, copartners as Kohn, Pepper
a. Co. of New York. 10 frst recltes the
history OF the Port Royal and Augusta
railway and the manner in which its con-
troll was acquired and is held by the Cen.
trial.
HISTORY OF THE PROPERTY.
The Port Royal railway was built 10
1S59-'60. In June, 1878. the road was sold
for the debts of the company and a new
company was formed with capital stock
OF $780, 900, under the name of the Port
Royal and Augusta Railway Company. In
the same year bonds were issued to the
amount of 81 100000, the holders of these
bonds being entitled to one vote
for each 800 of bonds held. This made a
total Of q, 500 votes for both stocks and
bonds. The bill charges that for the pur-
pose of preventing the development Of Port
Royal and OF preventing the Port Royal
and Augusta railway from becoming its act
i've competitor for business the Central
railroad acquired control of the Port Royal
and Augusta railway by purchasing large
amounts of stock and bonds of the latter
road, owning in 1892 4,015 shares of stock
and 81 ,176, 600 par value of the general
mortgage bonds. carrying voting power
of Is, ISL votes out total Of 22.500. This
which time the officers of the
Port Royal and Augusta have
been elected by the Central railroad, aud
have been the same as the general officers
of the Central, the president Of the Central
being also president of the Port Royal and
Augusta.
The bill further charges that although
the Port Royal and Augusta he's always
earned a suffioiency OF money TO properly
maintain its physical condition, its tracks
he's been suffered to run down and its prop
erty TO become depleted, its business
diverted from IL to the lines of the Central
railroad. and that not only has it not been
developed, but it has been purposely neg
iected.
A CHARGE OF PLUMBER.
1t also charges that the Port Royal and
Augusta had at Port Royal valuable shops,
which have been broken up by the Central
and the tools and machinery appropriated by
10, and that In like manner the cars and roll
ling stock OK the company have been taken
possession of and used by the Central as its
own without accounting for or paying any
mileage thereon. At The time its manage
ment passed into the hands of the Central
the Port Royal and Augusta, It is charged
further, was interested In at Port Royal
In large elevators, cotton congresses, ware
houses, wharves and other appliances of
commerce, all Of which have either been
taken away by the Central railroad or
allowed to deteriorate, and that by
reason Of this illegal domination of the Port
Royal and Augusta by the Central the
property has been greatly reduced In value
and its stocks and bonds rendered almost
worthless.
The control Of the Port Royal and
Augusta, it is alleged, was acquired by the
Central and is continued by it for the pur-
pose of defeating competition both to Port
Royal and to Savannah, which control 1t is
claimed is contrary TO the laws and public
policy both OF Georgia and South Carolina
BY this means 1t is charged the Port Royal
ana Augusta is prevented from entering
into any competition for business and from
enjoying that proportion of business which
would naturally come TO 1t from valuable
connections at Augusta and elsewhere.
THE ALLEGED DEBT.
1t is claimed that the Central railroad is
indebted TO the Port Royal and Augusta
railway in the sum Of $500 900 for earnings
and profits taken from the latter company
for business diverted from it and for prop
erty belonging TO it carried away and not
accounted for.
1t is charged, too, that the Port Royal and
Augusta was unlawfully put into the hands
OF the receiver OF the Central railroad, IL
being separate property, and that the
United States circuit court had no jurisdic-
ton in the case, because the complainant who
brought the bill, Mrs. Rowena n Clarke,
was also a resident of the state of South
49, aud