The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-01-29
no FORM A NEW SYSTEM.
PURCHASE or THE r. r. AND W. &
An INDIVIDUAL NATTER.

An INDIVIDUAL NATTER.
Gen. samuel Thomas says That He
and Others Interested With Him
Are Trying 10 Form New system.
But Would Use Charleston Rather
Than Port Royal a. an OutIet-He
Does Not Consider That IL Would
AGccf the CentraI-Hc and Mr..
Crawford ia he Present Before
Judge simonton To-day-Income
Bonds Oncred the Old CeRtrnTs
Judgment CreditorS-Trying 10
Wind Up the ReceiveTship.
The statement of the Morning News
that efforts are being made 90 form a new
railroad system by the combination or the
Port ROYAL and Western Carolina and Port
Royal and Augusta railroads. was con-
rrrned Yesterday by Gen. Samuel Thomas,
who. with Mr.. Thomas +. Ryan, bought
the Port Royal and Western Carolina prop
erty for S2.65900o.
Gen. Thomas and Mr.. Henry Crawford,
counsel for the purchasers, were in the
city yesterday. having come from Charles
ton the day before. They returned to
Charleston last night TO be present at a
hearing before Judge Simonton Of the
United States court, on the question Of the
confirmation Of the sale of the Port Royal
and Western Carolina. opposition having
been made by the counties of Spartanburg
and Laurens on the ground that the prop
erty was purchased for the Southern Rail-
way Company. Gen Thomas was asked
about the matter by a representative Of the
Morning News
THE purchase of that property" Gen.
Thomas said, was entirely an individual
matter as Mr. Ryan and myself stated be-
fore the commissioner. We represented no
one but ourselves.
What about the report that you intend
Forming separate system with the Port
Royal and Augusta, with Knoxville as a
western terminus and Port Royal as an
outlet" was asked.
Il can only tell you that's what we are
trying to do" Gen. Thomas said. There
has been some talk about it, and we are
ready to do it, If there are any capitalists
willing to take the matter up. Such a sys-
lem, however, would not seek Port Royal
as an outlet. but rather Charleston, the
commercial and financial center or the
state. But we must get the property in
Would not such a system antagonze
from its earning capacity was asked:
"Oh, no." Gen. Thomas replied; THE
Central never had any particular depend
Rnt connection with it,"
1t appears from what Gen. Thomas says
that the property has been purchased
FOR purposes totally disconnected with the
Central and that new system is one Of
The proba bilities of the not very far away
future There is a good deal of litigation
on hand, especially with regard to the
Port Royal and Augusta, before any
definite steps can be taken, but Messrs.
Thomas and Ryan are the owners of a
good many of the securities of that line
and they stand, no doubt, in position
where they can easily secure control of
., when the litigation is brought to a
termination.
There seems to he little doubt that the
sale of the Port Royal and Western Car
DINA will be confirmed, in view of the
fact that they have made affidavits to
the effect that they did not buy II for the
Southern Railway Company. This was
the principal. and practically, the only
ground upon which the objection was
made, and II the court is satisfied that
the objection is not a valid one, nothing
stands In the way of the confirmation Of
the sale.
Mr.. Crawford said with regard to what is
known as the Centrars overflow property,
which Is to be sold by Commissioner w.
Il. Leaken. on Feb. a. that the nominal
claim of Messrs. Thomas and Ryan, that
this property was covered by the mort
gage under which they purchased the
Central. has been withdrawn. The dispo-
sition of that property, he said, was a
very simple matter. Messrs. Thomas and
Ryan have large judgments against this
property, as was stated in yesterdays
Morning News, and whenever it is dis
tributed by the court they will, of course,
come in for a large pro rata share of 1t,
in fact, ALL except that portion which
goes to the judgment creditors of the Cen
trail Railroad and Banking Company, on
pro rata basis
Messrs. Thomas and Ryan have offered
10 put the judgment creditors on the same
basis as the debenture holders and give
them second preference income bonds at
par, which, IL is considered, would be
vastly more than they will get as their
share under the distribution of the court
in round numbers these judgments
amount to about 500 900, merely a pay
ment in comparison to the large judg-
ments which Messrs. Thomas and Ryan
hold against the old company.
There was no hearing before Special
Master George W. Owens yesterday, bur
all interventions TO come before him will
probably be attended to the latter part
OF this week. 1t is understood that
Messrs Thomas and Crawford are here
TO attend to the details in connection
with winding up the receiVership, and they
expect to do il as soon as possible They
want to get the assets in the hands of
the receivers, IT is said, and will take
upon themselves the settlement of all
claims according to the general directions
of the court.