The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-12-29
TO PROTECT ITS PROPERTY.
The SOuthWeSteTn'S Action a Pre-
CautiOlaTy Move.

Gus to Their Interests the d.
rectors Wanted to Be in a Po-
sition to Save the Company-The
Action of the Macon Meeting IMAM
imous.
Mr.. H. NJ. Conner, General A. R.
Iawton and Mr.. George J. Mills, the Sa-
vannah directors Of the South western
railroad. returned yesterday morning
from Macon, where they attended the
meeting Of the directors of that company,
an account of whose action was published
in yesterdays MORNING News.
The announcement that the directors of
the Southwestern had decided to take
their road. out Of the control of the
Central railroad receivers and to operate
It INDEPENDENTLY and had adopted resolu-
tons deciding upon such step and
specifying the manner in which 1t should
be carried out, created considerable sur
prise yesterday and caused considerable
comment.
The general idea was that the dissatis-
faction of the stockholders of the South
western railroad. because of their failure
to receive their last semi-annu9l dividend
as expected, had caused them TO reverse
their previous decision not to take ad-
vantage of the opportunity offered them
DIV Justice JdNhSUus 10 NlNllhldW rum bAAC
control of the Central, and to decide to
withdraw.
NO DIFFERENCES BETWEEN THEM
Reports were circulated to the effect
that the move was a surprise TO the
Savannah directors and that they being
in the minority upon the board the reso-
buttons were passed over their heads by
the majority. The resolutions were IN
trOduced by Capt. w. @. Raoul, and this
fact gave rise to the rumor that instead
of being closely in sympathy with each
other, as was formerly the case, Capt.
Raoul and the Savannah directors were
working upon opposite lines.
An entirely wrong impression appears
to have been created. Instead OF revo-
lutionary and antagonlstlc move IN sever
ing connection with the Central the &C
ton taken by the Southwestern directors
is only q precautionary measure to pro-
tect the property in case of an emergency,
which may possibly arise. This much
the MORNING NEWS is able to state
upon positive authority. No immediate
separation is contemplated by the direct
ors of the Southwestern at least, no an
tagonism to the Central is meant They
propose, however, to place themselves in
position where if necessary for the pro-
lection of their interests, separation
can be effected with the least Interrupt
ton in the operation of the railroad and
the smallest possibility of loss to the
stockholders.
A REORGANIZATION IN VIEW.
AS stated by one of the directors who
was present, the object of the directors is
10 place the Southwestern in such posi-
tion that in case an attempt should be
made TO carry into effect any plan of re-
organization injurious TO their interests
they viii be able to prevent it by with
drawing from the Central.
The question whether the Southwest
ern is liable for one-third of the S5,000,-
600 of tripartite mortgage bonds is now
awaiting rehearing before Justice jack
son on an appeal from his former decision,
which declared the Southwestern liable.
In case Justice Jackson's decisions
should be affirmed and the liability of the
Southwestern be fixed, and the property
should be ordered sold, there might be
disposition on the part of intending pur-
chasers, the director said, to squeeze the
Southwestern.
To prevent this, it is proposed to issue
bonds to secure the amount necessary to
pay the Southwestern proportion of the
tripartite bonds and save the road to the
stockholders Sufficient bonds will also
be issued to secure money to equip
the road for independent opera
ton and to secure control of
the Montgomery and Eufaula and Mobile
and Girard railroads, which are connect
ing lines.
HAS NO BONDED DEBT.
The Southwestern railroad has no
bonded Indebtedness outside of its liabil-
ity for one-third of the tripartite mort
gage bonds and its Endorsement on the
Montgomery and Eufaula. The system
includes 1913 miles of road exclusive of the
Mobile and Girard and Montgomery and
Eufaula, and the proposed bonded debt of
I
$l2, 900 per mile.
The action of the Macon meeting, while
not previously agreed to by the Savannah
directors, was practically unanimous, that
is, so far as the general purposes of
the resolutions adopted are con-
cerned. Mr.. Conner, it is said,
asked to be excused from voting or ex-
pressing himself upon the resolutions on
account of his position as receiver. Gen.
Lawton and Mr.. Mills also begged TO be
excused on the ground that they were
not as familiar with the resolutions as
they would like to be and preferred to
have them printed for information to the
stockholders, and to be submitted TO them
at the meeting on Feb. 8. There was no
opposing vote to the resolutions, however.
PRECAUTIONARY MEASURE.
MIR. Conner was seen yesterday, but de-
clined to discuss the action of the meet
ing
1.-THE resolutions speak for themselves, i"
he said
"Do you interpret the resolutions as
meaning that majority of the South
western directors prefer that the road
should be operated separately from the
Centrall" he was asked.
'Not at all, was the reply 81 under
stand it is only precautionary step on
the part of the board of directors. The
other directors are DESTROYS that the
property should be operated in connection
with the Central railroad, and as part
of the system. They are satisfied that
the interests of the two roads are identi-
cal. 1t is understood that applications
will be circulated for proxies of stock to
be used at the coming election for direc-
tors in February, the object being to Sc
cure full vote of the stockholders, in
order that board of directors may be
elected who are thoroughly alive to the
interests of the property"
Mr.. Conner said that an application
had been made TO the court for an order
to purchase 1,500 tons of rails for the
southwestern, which, after deducting
the value of old rails removed, would NOT
cost over S40,000-an amount less than
estimated earnings for the month of
December, and that they were much
needed and should be placed in the track
during the spring, when the work can be
cheaply done.
a "