The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-08-22
THEY HAVE THEIR OPTION.
The CeItTal'S Leased Lines Can Now
Demand Their Property.

Demand Their Property.
| Reports Made TO the Four Leased
! Lines and Their Answer as to Wheth-
er They VIII Withdraw or Remain
With the Central Must be Returned
/ in Thirty Days-The Augusta and
Savannah the Only One Making Ex-
penses-The Southwestern Hearing
to Come Up at Washington Ooto-
Der Z.
Reports have been made to the Augusta
and Savannah and the Eatonton Branch
railroads, by Receiver Conner of the Cen
| trail, giving the exact status Of their con-
dition and earnings and expenses.
The stockholders Of these roads have
the option Of allowing their property to
remain in control of the Central under
their respective leases, and receive only
the earnings over and above operating ex-
penses; or they can, under Justice jack
sons decision, demand the surrender of
their leases and operate their roads on
their own hook. The notices have been
served, however, and they must make
answer within thirty days as to what
they intend to do.
OF the four roads to which accountings
have been made, only one has acted The
stockholders of the Southwestern, al
though made aware that their road was
being operated at a loss. at a meeting
held in Macon declined to demand a ten
der Of their lease, deciding that it was
best for all parties concerned that the
road should continue to be operated as
part of the Central system.
OF the other roads it was shown that
both the Eatonton branch and the Mobile
and Girard road We're being operated at a
loss but what the stockholders of these
properties will do has not yet been deter
mined, as they have not met to take ac-
tion.
THE ONLY ROAD EARNING ITS Retail.
The Augusta and Savannah, to which
the report was recently made, has not yet
acknowledged service through its az
torneys, consequently the report upon this
road has not yet been filed.
1t is well-knOwn, however, as was
brought out in court during the hearing
before Justice jackson, that the road has
been making money, and in fact it has
easily cleared operating expenses and
the amount Of the rental. This showing
was made to Justice jackson when he was
conducting the hearing here, and he read
lily granted Mr.. Frank II. Miller, attor-
ney for that road, an order directing the
receiver to pay the rental of the Augusta
and Savannah out of any funds he had in
hand. 1t is highly probable, therefore,
that this road will continue to beoperated
under the present lease to the Central,
at least as long as the stockholders are
assured that it will make the amount of
their rental.
The Augusta and Savannah and Mo
hiIn and flipapd will N n 70
on the matter at an early date, as they
have but little over three weeks now in
which to consider it.
The stockholders Of the Eatonton
Branch will hold a meeting at Eatonton
to-day to consider the account rendered
them by the receiver, and take action
upon the option left them by Justice
jackson, of demanding the surrender of
their road or allowing it to remain in
charge OF the Central and only those
earnings above operating expenses to be
paid them. No intimation could be OBJ
tanned as to what the Eatonton Branch
will do to-day, but it is thought that it
viii allow its fortunes to remain in the
hands of the Central.
TO BE HEARD OCTOBER 4.
The date for the re-opening of the hear
ing of the question of the Southwestern
liability upon the tripartite mortgage, as
Oct.
The hearing will be re-opened at Wash
ington on that date before Justice jack
son and Judge Speer.
The question to be argued is the liabil-
ity Of the Southwestern ON the tripartite
mortgage, as to whether it is liable as Sc
curity only, and the Central should be ex-
hausted first before the Southwestern
should be sold to pay that debt, or
whether it is primarily liable This is the
question on which the hearing will be re-
opened, but it does not argue that Justice
jackson is liable to change his former de-
cision, which was that the Southwestern
was primarily liable for one-third the
amount.
The fact is that if it was held that the
resources of the Central should first be
exhausted to pay this debt, the South
western would practically not be liableat
ALL as the Central has more than enough
assets to pay IS, 000, 900 mortgage.
The Central is paying up taxes due,
slowly. 1t has been for sometime difficult
to get money enough to pay operating ex-
penses and the wages of labor, and all
Others will probably have to wait until
the cotton crop begins to move before
they get a settlement.