The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-12-08
No DECEMBER RENTAL.
Augusta and Savannah Stockholders
Shy Of Dividends.

The Road Showed a Deficit for July,
August and September-Wil Have
to Make it Up and the Rental Be-
sides Before Any Dividends Can Be
Paid-Justioe Jackson's Order Prac-
tically Annulled the Lease-Ofnoers
of the Road Called on Receiver
Conner and He Referred Them to JUS
tice Jackson's Order-What the
Stockholders May do in the Prem
Uses.
The stockholders of the Augusta and
Savannah railroad will not get their divi-
bends due Dec. l, that is, they will not
get the full amount of per cent. guar
anteed under the old lease unless they
make up a $500 deficit besides enough to
pay the rental during the months of Octo-
Der, November and December and this
seems hardly probable.
At the first of the month, when the
rental was due, some of the stockholders,
it is said, called on Receiver Conner and
asked him about the semi-annual divi-
dend or rental, which amounted to $780,
500 and it is understood that he referred
them to the order of Justice Jackson with
regard to the leased lines, which GER
tainly seems under the circumstances to
leave them out.
HAS NOT MADE THE MONEY
Exactly what will be done with regard
to the rental cannot, of course, be told
until after the next quarterly report of
the receiver, which Will be made some
time in January, and which will show
whether the Augusta and Savannah has
made any earnings during the three
months preceding.
A reference to Receiver COmers last
quarterly report for July, August and
September shows that the Augusta and
! Savannah railroad expended for mainte-
nance of way and equipment, transporta-
ton and general expenses Just 81, S43. 80
more than was earned by that road If
the next quarterly report makes no better
| showing for the property, under Justice
JacksOn'S order the stockholders will get
no rental.
THE LEASE PRACTICALLY ANNULLED.
1t is claimed that Justice Jackson's or
der practically annuls the lease of this
road to the Central as well as those of the
other leased lines 1t rendered the leased
| lines back to the owners. unless they
should elect to remain with the Central
and be operated by that road, not under
| the terms of the lease but to receive rem
| Val OLlJ up W GuC amount Oh Ilelr ueU
earnings in case they did not earn the
| full amount of the rental according to the
| lease.
This the Augusta and Savannah rail
road has not done, at least, during July,
August and September, and to get any
| thing at all they will have to show net
earnings during October November and
December above the deficit of the three
months preceding those If there are any
| net earnings for the six months preceding
| the time the rental was due they would
be turned over TO the stockholders, but it
is scarcely possible that the amount of
the rental will be made up in that time
If the earning power of the property
should increase in the next six months it
is possible that this back rental may be
| made up.
WHAT WILL THEY DO?
The question naturally arises as to
what the stockholders of the road will do
If the road is not being operated under
the lease they have little protection ex-
cept by order Of court, and they also, it
would seem, have the right to withdraw
when they choose.
1t will be remembered that they
partially reserved that right in the reso-
luton adopted here at the meeting which
| decided to allow the road to be operated
| by the Central. They made the provision
that they should have the right TO apply
TO the court from time to time for such
orders as should protect the property and
| its rights under the lease.
In order to avoid the publication of
thirty-day notice, which is required un-
der the charter, the last stockholders
| meeting adjourned subject to call on ten
| days notice 1t is probable that some
such condition of affairs as this was an
ticipated, and another meeting was
wanted to determine what action should
be taken in the premises. 1t remains to
be seen, under this new state of affairs.
whether the road will want to remain
with the Central or withdraw from il.