The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-10-22

dence of this it was stated to the railroad
commission that the Western and Allan
tic and the Louisville and Nashville are
to-day, and have been a all times since the
organization of the Southern, the prefer
red connections of the Central at Atlanta
as against the Southern.
Mr.. Spencer's statement as. regards the
Georgia Southern and Florida was that
when the Southern purchased in the spring
of 1885, prior to the reorganizations of the
Georgia Southern and Florida, a majority
of the outstanding certificates represent
ing the securities of the new company it
was thought that these certificates would
carry with them a majority of the capital
stock of the new company 1t was ar
ranged, however, by the reorganization
committee of the Georgia Southern and
Florida that portion OF the second pre-
ferred and common stock of the new COM
pany should be held in trust
with the bondholders of the
Macon and Birmingham railroad. who had
a claim against the old Georgia Southern
and Florida company. This stock was SUBJ
sequenty issued as an addition to the stock
called for by the certificates of reorganiza-
ton, and it then transpired that the
Southern instead of holding a majority
would hold only about 1900 shares out OF
total Of about 27,000 shares of the capital
stock of the new company Therefore the
Southern does not hold a majority.
Mr.. Spencer stated to the commission
that II his company was in absolute con-
troll OF the management and policy of
either the Central or the Georgia South
ern and Florida, or of both, it would not
be wise, in his judgment for the South
ern to attempt to compel these properties
to be solely tributary to the Southern, a
liberal policy with regard to exchange of
business, with reasonable competitors as
we'll as with friendly connections, being
more to the interest, not only to these
properties themselves, but of the South
ern, in its relations to the public. The
Central to-day, said Mr.. Spencer, gives
the Western and Atlantic business out of
Savannah here in Atlanta in preference
to the Southern. Mr.. Conner himself says
the Western and Atlantic and Louisville
and Nashville is his preferred connection
here, and he gives them so tons to l to
the Southern, as the reports show. Is
that control in the management? Mr..
Spencer stated that there is not a dollar
that comes into the treasures of the
Central or the Georgia Southern and Flor
ida that goes to the treasury of the
Southern. If it were perfectly legal to
absorb the Central, it would not be pol
icy to do it. 1t would be legal to absorb
the Georgia Southern and Florida If
there is any doubt it is on the Central.
The stock of the Central has no value at
all now, said Mr.. Spencer The Centrals
fixed charges are about 81, 100000 per year,
and that is about sll it has earned this
year. The Georgia Southern stock is a
little better 1t has paid a dividend on
the first preferred stock this year.
Speaking of the general policy of the
Southern, President Spencer said it would
never undertake to monopolize any busi-
ness; that would be suicidal. II may as
tonish you," said he, when I tell you, but
it is a fact that the old East Tennessee,
Virginia and Georgia lines, which were
open to the Seaboard Air Line before our
consolidation, are still open to the Sea-
board on the same terms. We will never
close our lines to others to which we have
ever opened up"
MIR. Spencer said that he is not a direc-
tor of the Central, but the intention was
to make him a director. The Southern
was entitued to at least one vote in that
company. at might be well to remem-
ber," said Mr.. Spencer, that this reor-
ganization committee of three is COM
posed of two representatives of the Cen
trail Trust Company, which is trustee for
the bondholders of the Central. This COM
mittee holds this stock and they would
not sit by and see the Southern take the
Central and operate it against the inter-
est of the bondholders. Our beneficial in
terest in this stock is subordinate to these
other interests and they must be pro-
tected. AS long as we hold it we intend 10
see that this is done.'
If rule one was applied, Mr.. Spencer
said, it would not effect the abolishmenc
of the officers of the Central, as was done
with the Georgia Pacific when it was con-
solidated with the Southern. There might
be some changes. either of the Southern
or the Central, but what these might be
he could not say. At any rate, no con-
solidation of the Central and Southern
would work an abolition Of the separate
organization.