The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-06-16
SOUTHWESTERN'S STATUS.
The ReOrgaRizeTS Willing to Give 5
Per Cent.

They Will Also Assume the South
westerns Portion of the Tripartite
Bond Obligation Text of Letters
Exchanged by Samuel Thomas and
Thomas F. Ryan With Chairman R.
T. Wilson.
Macon, Ca, June 15.-The Southwest
ern stockholders held a meeting at the
Office of the company, over the Central
Georgia Bank, this morning. 1t had
been stated that the meeting would trans
act no business of Importance to the
public, but when the meeting was called
together it was announced that there
we're two important communications to
be brought before the meeting. The
communications were then read as fol-
lows:
New York, May 2s.-Mr. R. T. Wilson,
chairman Southwestern Stockholders com
mittee, New York.--Dear Sir; We have given
careful consideration to your suggestions as
TO the basis upon which business relations
can be established and litigation ended be-
tween the Central of Georgia and the South
western interests We understand that the
terms of such settlement are:
First. that the Southwestern be relieved
from the payment of any part of the trlpar-
tfte debt now decreed against it and its prop
erty be freed from such lien and all receivers
de is.
second, that by amendment to the present
or a new lease, the Southwes tern be relieved
from an agreement to renew or reissue bonds
or execute mortgages on its road, and the re-
organized Central OF Georgia shall lease the
Southwestern in perpetuity and guarant ee a
net per cent. annual dividend to its stock.
holders.
AS we already represent the majority of the
Central of Georgia stock as well as its tripar-
tte bonds and floating debt, and are also ar
ranging the securities on the other roads in
the system, we are compelled to consider
your suggestion in connection with all the
other obligations which the new company
will have TO assume under the reor-
ganization which we have in progress.
We are of the opinion that the designated
return to the Southwestern stockholders is
ut present in excess of the real earning
power Of such road, whether operated 1nde.
pendently or as part of the Central system.
Believing, however, that the Southwestern
railroad situation will. in few years so i'm
prove in tonnage and revenue that the rental
suggested will not be burden on the main
line we have concluded, after a conference
with other interests involved to advise you
that we are prepared to accept the proposed
terms Of settlement as above stated.
We suppose that the method by which this
adjustment shall Re carried out will be a
matter of conf ereace between our respective
counsel We stand ready TO cooperate with
you in every way to arrange details aad
bring matters TO a speedy conclusion. Yours
truly, SAMUEL THOMAS,
THOMAS f. RYAN.
CHAIRMAN WILSON'S REPLY.
The following is the reply of Chairma n
r. T. Wilson.
New York, June 8, 1s9l.-Gen. Samuel
Thomas and Thomas F. Ryan, Esq.-Gentle-
men; beg to own the receipt of your favor
OF May 2S, In respect TO a settlement of the
litigation between the Southwestern railroad
and the Central Railroad, of Georgia Your
letter is written as II in reply to
suggestions made by me as to the terms of
settlement which would be accept a ole
10 the Southwestern Railroad Company.
do not row remember ever having made any
definite 81 ggeStionS as to the basis Of settle
ment. nor have heard Of any expression OF
opinion having been male at any meeting of
the stockholders, or any considerable mum
Der of them, as TO what terms would be ac-
tep a0le to them 1t is proper for me 10
state, however. that L think 1t possible that
the terms which you mention would be salts
factory if the new company is organized upon
such basis as will inspire the necessary con
hdence in its responsibility l will submit
your letter and a copy. of my reply
TO meeting Of the stockholders of the South
western Railroad Company, which meets al
Mao on June l5 IN Conclusion allow me &c
thank you for your letter and TO say that
shall be very happy TO facilitate In any way
IN my power settlement between the two
Companies. Yours truly,
r. L. WILSON,
Chairman OF Committee.
After the communications had, beer
read, a resolution was passed by the
stockholders authorizing the directors tS
take the whole matter in charge and
make the best terms they can with the
reorganization committee, the idea being
that if the committee is in a position to
purchase, n trade can be made without
delay. The meeting then prepared g
communication to the directors and ad
jOurned
The following directors were present al
the meeting: j. S. Baxter, vice presi-
dent; w. G. Raoul, J. M. Johnston, w
X. Cox AMI B. AI1enmark The director;
are of the opinion that there is every
indication that the stockholders will get q
Guarantee nf 4 MOI, paut pxl tbpir stock