The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-02-04
WILL VOTE ITS STOCK.
The CeltraI'S Southwestern Stock Not
TO Be Transferred.

It Is Hypothetical as a Security for
the Georgia Railroads Rental, and
an Effort Believed to Have Been
Made to Have It Transferred to
That Road Is Defeated by Judge
speer's Injunction-There Has Been
No Default, and There Seems to Be
No Necessity for the Georgia Roads
Asking for the Transfer.
A supposed effort on the part of the
Georgia railroad to get such control of
the Southwestern stock held by the Cen
tral as will prevent the latter road from
voting it at the meeting this week, has
been effectually squelched by an iniunc-
ton granted by Judge Speer and filed in
the United States court yesterday.
Somehow or other the information was
received by Receiver Conner that the
oficers Of the Georgia railroad, Of which
Col. c. H. Phinizy is president, were en-
deavoring to get President Baxter, OF the
Southwestern, to transfer the l. los shares
of Southwestern stock owned by the Cen
tral, and which is on the Southwestern s
books in the name of the Central, to the
Georgia railroad.
HAS A RIGHT TO DO IT.
Z These 1,19s shares of Southwestern
stock are hypothetical to the Georgia
railroad as a security for the payment Of
the Centraps part of the rental of that
road, and the Georgia railroad has a
power of attorney by which it can have
the stock transferred to it in case of a
default in the payment of the rental to
that road by the Central
There has been no default, however, in
the payment of the rental, and there
seems to be no necessity for such action
on the part of the Georgia road. The
stock has always remained on the books
in the name of the Central, and that
road has exercised the rig hit of voting it,.
In case of a default in the payment of the
rental the Georgia road might have some
excuse for wanting tie stock transferred,
but as long as the interests of that road
are not teopardized there seems to be no
reason for it.
If the stock should be transferred to
the Georgia road the Central would lose
the power of voting it unless a power of
attorney to do so were first obtained from
the president of that road On account
Of the antagonism against the Central on
the part of some of the Georgia roads
officers, it is thought that this power Of
attorney might not be granted when re-
quested.
JUDGE sPEER's INJUNCTION.
AS Thursdays meeting, which is the
annual meeting of the stockholders of the
Southwestern road, is to be an important
one and one in which the interests of both
that road and the Central will be at
stock voted at that meeting in favor of
its interests.
When it was learned, therefore, that
some attempt was being made to have
President Baxter transfer the stock to
the Georgia road, steps were taken to
prevent it. The matter was laid before
Judge Speer by Receiver Conner, and the
court granted an injunction temporarily
restraining President Baxter from trans
ferring the stock. The Georgia road
holds a power of attorney, by which
it can apply to have the stock
transferred to itself if at any
time it should be necessary to its interests
to do so. 1t is not thought, however that
1T is necessary at this time, as the rental
has been paid promptly and there is no
danger of any default in the near future.
If the interests of the Georgia road re-
quire it at any time, that road is
given the right TO apply to the court
for an order to have the stock transferred
to 1t on the Southwestern s books In the
meantime, however, the stock will re-
main as heretofore in the name of the
Central, and will be voted by that road.