The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-01-03
TO CALL FOR PROXIES.
Southwestern Stockholders Here to
Issue q Circular.

] The purpose or the SaVannan 6Cocks
holders to Vote Down ANY Measure
at the Macon Meeting that Will be
Detrimental to the Property-Efect
of the Separation OF the Central
From the Southwestern on Trade.
! President Baxter Talks.
The opposition to the Raoul movement,
! which, it is alleged, is TO take the South
western from the control of the Central
and form a separate system of roads, is
not lying inactive, and several stockhold-
ers will get together Friday or Saturday
for the purpose of drawing up a circular
letter to be mailed to all the stockholders,
who, it is thought will not support the
Raoul resolutions.
The object of the Savannah stockhold-
ers, who are taking an active part in the
movement against the resolutions, is to
go to the stockholders meeting of Feb. s
prepared, if possible, with a majority of
| the stock to vote down any measure which
| they think will be detrimental to the
| property's int erests.
The circular will ask the stockholders,
| if they oppose the action contemplated in
that resolution, and the withdrawal of
| proxies to certain ones of the Savannah
| stockholders, who will be present at the
meeting, and who will vote in opposition
to the resolution If an attempt is made to
| pass it. The circular will be sent out
| sometime next week.
POSITION OF THE STOCKHOLDERS.
The Savannah stockholders who op-
pose any such action, and they all are
| united on the question, expect by this
/ To ~ tI4r.N nd
! control the meeting. All those who
have not done so will be urged either to
! get proxies from the Mercantile Trust
| Company for their holdings or to get the
stock itself so that it can be voted.
Mr.. George j. Mills said last night that
the action contemplated will not only be
detrimental to the Southwestern railroad,
but also to Savannah, and that the Sa-
vannah interests will fight it to the end.
"A large part Of the traffic" he said,
(which now comes from the territory of
| the Southwestern to Savannah would be
diverted over other lines. This includes
a great deal of cotton which comes from
that section and which aids materially In
building up Savannah's receipts. So far
| as the claim is concerned, that Macon
would get good deal of cotton that now
comes to Savannah, it may be said that
Macon would get no more of it than at
! present, as the cotton shipped over the
! Southwestern would continue to pass
through Macon to some seaport just as 1t
does now to Savannah"
EFFECT OF THE PROPOSED STOCK ISSUE.
Mr.. Mills and Gen. Lawton are both of
| the opinion that the issue of so large an
amount of bonds as is contemplated under
! the resolution would practically do away
with stock dividends almost entirely.
Gen. Lawton says he is strongly opposed
to such movement as the separation Of
the Southwestern from the Central, and
forming an Independent system with
it, the Mobile and Girard, and
the Montgomery and Eufaula. He
will oppose it with his vote unless good
and substantial reasons can be shown
why it will be decidedly to the interest of
the property to withdraw it from the
Central, and this he says, he does not be-
lieve can be done
In the meantime the two factions are
gathering all the forces they can muster
for the fight, which will, no doubt, be an
interesting one,
PRESIDENT BAXTER TALKS.
President Baxter, of the Southwestern
railroad is quoted as declaring emphat.
ically, but temperately, that the stories
printed to the effect that the withdrawal
movement was intended to be autagonis
tic to the Central or Savannah, are with
out foundation.
The proposition, he says, was prompted
by a desire on the part of the directory
to be ready to meet any and all ohliga
tions of the Southwestern company, from
whatever source they might arise. THAI
the courts decided that the Southwestern
was liable for a portion of the tripartitt
bonds to place the company in position
to step up at once and say, Here's YOU
money" and protect it's property. If the
courts decided that the company was {
genuine indorser ON the Montgomery an(
Eufaula bonds, to be ready to meet The
debt promptly when the decision is rem
dered.
WHAT MAY RESULT.
If this is not done, which he thinks car
not be if the road stays in the possession
of the Central, if the court does place
these liabilities on the company, the prop
erty will be put up for sale and bought il
by the bondholders for song, while thu
company will be powerless to proven
such result, mourning a needless ant
d heavy hardship on the stockholders.
He says the Southwestern people were
surprised when they were offered theil
road before, and that they may be sur
prised again at time when they are a
sea through lack of diligence, hence thu
precautionary move.
Mr.. Baxter says that the withdrawal
proposition is no bluff, that the road will
! positively De WlInufaWu from the Cenbra
unless the stockholders vote otherwise al
their meeting, Feb. s.
TO KEEP UP HIS RELATION
So far from antagoniZing the Contra
the Southwestern proposes to keep W
the same traffic relations and bushes.
alliance which exists under the joint con
troll. The only effect is to force the
Southwestern directors to assume the
management of it's property so it car
raise funds TO meet the liabilities thai
may be imposed by the courts in the i'm
pending litigation. DIR. Baxter says thai
the Southwestern intends to negotiate
with the Central for cars and rolling
stock for the road and give the Contra
the preference in everything, and re
CARDS the roads as warm friends anC
close and valuable allies.
As to the reports from Savannah thai
some OF the directors were surprised al
the introduction of the withdrawal reso
buttons, President Baxter says that's
strange since the stockholders report
mailed to each director prior to the meet
ing here, clearly foreshadowed some such
action on plain terms.
Funeral of w. G.. Lathrop.
30 ba 1nt NxTsI1s.., n