The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-03-18
ME. OWENS, REPORT.

A Statement of the Savannah and
Western Accounts Sent to montgom-
cry.
Mr.. George w. Owens. master in chan
Gerry in the Central railroad litigation,
completed his report with regard to the
accounts between the Savannah and
Z Western and Central railroads yesterday
and forwarded it to Montgomery, where
the litigation so far as the former road is
concerned is pending.
The report shows that the total amount
of the Indebtedness Of the Savannah and
Western railroad, or of the receivers Of
the Savannah and Western railroad to
the receivers of the Central railroad is
1899, 253.6 81, or nearly 81, 600 900.
The report covers only the period
during which the property has been in
the hands Of the receiver from March 4,
1892 TO Dec /, 1898, but refers to contracts
made previous to that time on which pay
ments have been made since the receiver
ship began.
THE REPORT OF OPERATIONS.
The first accounts taken up in the re-
ports are those concerning operations.
The statement is made that the correct
ness of the accounts between the two
roads is not cushioned but evidence was
introduced to show that the accounts
were kept in an incorrect and unfair man
ner. as between the roads which compose
the Savannah and Western and the Cen
trail systems.
The entire system Of the Savannah and
Western as is shown by the report. has be
come indebted TO the Central under the
re eivership in the sum of 1854. 329 SO,
4 4
a credit Of $l6,64lS6 The foregoing
amount is diicit from operations of the
Savannah and Western by the Central
and which the Central had to pay out of
the general fund This is the
account on which the Central
originally claimed that the Savannah
and Western originally owed it some
ting over S10O,0 900. An examination of the
accounts, however, showed that certain
charges had been improperly made
against the Savannah and Western by
the Central, snch as for taxes which have
not yet been paid and for coupons. for
which Il fund has been provided. After
deducting these amounts the amount due
as deficit from operations which the Cen
trail had to pay out, was found to be
1854, 329 30.
THE LOSS IN OPERATIONS.
The total loss in operations from the
Chattanooga, ItOIue anu Columbus, inc
Columbus and Western. and the Column
bus and Rome railroads, which belong to
the Savannah and Western during that
period, was S492 919 SO, and the net profits
from the other portions of the system
were Sl07, 5S9.37, which reduced the loss
to S3S4, 1923. 36.
Ihereport says the vouchers were ex-
amined to show their correctness and the
manner of keeping them 1t was impos-
Glbln for the n ayaTpiOa al no
vouchers, as those in the auditing de-
partment of the Central represent the
work of twenty men for twenty-five
months
The passenger accounts were found cor
rect. The freight accounts were the ones
complained of. The freight re-
ceipts were divided on what
is known as the square root
basis. The manner of keeping these &C
counts seemed rather to favor the Savan-
nah and Western roads than those of the
Central.
THE CAR ACCOUNTS.
The report then took up the car &C
counts as between the receivers Of the
two roads. Of the cars purchased on the
contracts for the Savannah and Western,
the Central was found to be entitled to
1859 cars and fifteen locomotives. On ac-
count of rolling stock and
supplies 1t was found that
the receivers of the Savannah and
Western owed the receivers of the Cen
trail S554 924.25 making the total indebt-
ness of the former to the latter $685., 253,-
81. This is the amount which the re-
ceivers of the Central ask the court to re-
quire the receivers of Savannah and
Western to pay them. A statement of
the principles of equity on which this de-
mand is made has already been given in
the MORNING NEWS. The entire prop
erty is in the hands of its creditors and
one portion of it which is under one lot Of
bondholders can not expect another por-
tion to furnish funds for its operation,
and to make good its losses.