The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-10-22
OWNERSHIP OF THE CENTRAL.
MIR, SPENCER MAKES 1T CLEAR TO
THE COMMISSION.

nany For the BENEFIT of the Secur-
tty Holders of the Southern Rail-
way-The Legality of This Holding
Already Affirmed by the Courts.
= If the Southern Can Not Hold 1t
Then It Is Entitled to the Proceeds
From Its Sale.
Atlanta. Ga. Oct. 21.-The Southern
railway owns the Central of Georgia, and
then again it does not own it.
The Southern owns $4,000 of the 1900
shares of the Georgia Southern and Flor
ida. but it does not own dollar in the
Macon and Birmingham.
This is the list of information obtained
bv the Georgia commission from Presl.
dent Sam Spencer of the Southern to-day.
Mr. Spencer was before the commission
as the star witness to clear up the mooted
question of the ownership and control of
the lines mentioned. He told all about
the relations of the lines except who the
men who compose the Southern itself are.
He was not asked this question by the
commissioners, but after the hearing,
when it was put for interview purposes,
he gave a scattering reply.
The actual relationship between the
Southern and the Central might be de-
scribed thus: Now. you see it--now you
don't"
For months past the railway commits
sion has been trying to bring to light
the real ownership of the Central and
the Georgia Southern and Florida. They
have been actuated in their Investigations
by a determination to enforce the rules
compelling different lines owned by
the same people to make the same rate
as would be required of a single line. This
would mean a considerable reduction in
the cost of making shipments handled by
the Southern and Central or the Southern
and the Georgia Southern, as by the rules
the rate for shipments over different lines
is higher than the rate on the same ship
ments over the continuous line.
In addition to the Importance to the ship
pers affected the question of the owner
ship of the Central by the Southern, as
the railroad commission was led to believe
was the case when the investigation was
begun, would also involve the legality
of such ownership under the constitution
al prohibition against the ownership by
Olib lam Odl VI q competing llne. On IllS
account the disclosure of the facts in the
Il case has been attended by still deeper
Il interest, as on the showing made the fu-
H ture career of the Southern Railway Com
pany in this state might depend.
The commission has had the question
up half dozen times or more, summon
ing all the officials of the lines at inter-
n est to give their information. The case
narrowed down until it appeared that
ms rbn Al 4,
lnloImauon was President Spencer of the
southern, who, as the head of that big
comonation, was in a position to know
an about the inner workings of the buy
ing and selling of railroads that has been
gong on in the south for the past three
OF Iour years on the Southern railways
account. Mr.. Spencer being a non-resi-
cent OF the state could not be brought
Iorcl0ly before the commission as a wit
ness -Four months ago, when it became
apparent that the commission would never
sel at the bottom of the situation, except
lhfough him, he was in Europe, and, there
lore, still further away from the seat
VI investigation. Upon his return from
Europe President Spencer signifed his
M4AIhghess to come to Georgia to meet
me railroad commission as a voluntary
witness. He declared that the Southern
railway Company did not have anything
nolding stock in the state and he was
ready to answer any question: the com
mission might desire to ask him, The
nearing was set for to-day.
Nlf. Spencer arrived her last night from
New York, to keep his engagement. He
u-u not bring any advisers with him, but
Cane unattended to grappel with the
georgia railway commission. Comnlls-
9'OHeF CrenshaW was absent from the
nearing to-day on account of the death of
s us son. Commissioners Trammel and
iorl Kept Mr.. Spencer on the stand for
an uour and half, however, and got out
VI MN enough to bring the investigation
" d ciose, and enable them to render a de-
cslon. What this will be is only sur
missed but it is a safe prediction that
lule l VIII not be enforced between the
central and Southern
as regards the Central, President Spen-
.cr SAID; The capital stock of the Cen
u@l Is held by the Richmond Terminal
,eo' sanitation committee, it having come
Ilo the possession of that company by
59soh Of its holding of the stock of the
u central railroad of Georgia, and of
we calm which that committee held
asG'nst certain assets of the old Central
NSllIoad IN suit brought in the state of
Ew YORK; and the committee legally
-ol's the stock under the decision of the
60 justice jackson of the supreme court
H0 Cnlted states, which decision was
alHrmed by the circuit court of appeals
Under and ~ tdrt,,c of
e terms Of the reorganization plan of
@ Mchmond Terminal properties this
cN Is an asset for the benefit Of the
ufIty holders of the Southern. The
ogunern did not buy the old Central stock
u lt does not hold the beneficial inter-
py reason of any desire or effort upon
@ part to own the control or any inter-
IN the Central. The reorganization
Hinittee was obliged to protect this as
OF the Central stock for the benefit of
"OSe whom the committee represented,
anely the security holders Of the South
II the Southern can hold the stock
saly the reorganization committee is
ouHo at the proper time and under proper
Suultlon to deliver It. IL the Southern
'Aot legally hold It. then the Southern
enutled to the proceeds of the stock
uer the best disposition of it which the
M sanitation committee can make.
ne southern, under these circum-
'uces' has not exercised, nor attempted
exercise. any control over the corpora
y" physical management or policy of
central. The management is In the
ula OF the officers of the Central Rail-
uJ company of Georgia, and there has