The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-11-16
GEORGIA RAILROAD GRAB.
LOUISVILLE'S GROUND FOR TRYING
To SHUT OUT CENTRAL.

Mai. Cummings For the Georgia and
Alex c. King For the Louisville
and Nashville Present Their Side
of the Case to Judge Pardee.
The Claim Made That Neither of
the Lessee Roads Acquired Proper
ty Under Their Contract With Mr.
WRdlcy-Judge Pardee Asks n
Significant Question.
Atlanta Ca, Nov. 15.--The fight for con-
troll of the Georgia railroad was resumed
to-day in the United States circuit court
before Judge Don A Pardee. This case
was up ten days ago and after being part
ly heard was postponed until to-day. When
the case was first taken up MIR. Craw-
ford, counsel for Thomas & Ryan, pre-
sented that side against the original lease
made by the Georgia railroad to William
Wadley and the leases made by the lat
ter to the Louisville and Nashville and to
the Central Railroad and Banking Com
pany of Georgia. The two lessee compa-
nies from MIR. Wadley were tenants in
common, it was contended and not part
ners, as was contended by the Louisville
and Nashville
Maj. Cummings of Augusta, for the Geor-
gia, and Alexander C. King of Atlanta,
special counsel for the Louisville and
Nashville, spoke to-day. Two railroad
presidents were in court during the morn
Ing, Milton H. Smith of the Louisville and
Nashville, and II. M. Conner of the Cen
trail On this question they are far apart,
the Central sympathizing with Thomas and
Ryan, and the Georgia road with the
Louisville and Nashville.
/ Maj. Cummings delivered his argument
first to the point that neither the Central
nor the Louisville and Nashville ever ac-
quired any interest In property under the
contract which they made with Mr.. Wad-
ley In 1881. All they got under that con-
tract was the right to operate through
commissioners the Georgia railroad and
to share equally in the profits, If there
were any. The contracts carried no ex-
elusive half interests to either one or the
other of the sub-lessees. Maj. Cummings
stated that these commissioners did not
always pair off, three ON one side and
three on the other of a question. There
was a seventh commissioner, selected by
the other six, and he was the general
manager of the road. He was chosen to
operate for the joint interests of both.
Maj Cummings drew the original leases
or contracts, the one which Mr.. Wadley
made with the Georgia and the two which
he made subsequently with the other
roads These instruments were drawn,
said he, with never a thought of any one
else coming into the situation.
Maj Cummings declared that the Louis
vile and Nashville had no idea of confis-
eating the old ~Central's half interest.
The Louisville and Nashville recognizes
that perhaps there are some rights attach
ed to that interest, and IL there Is any
thing due to any one by the Louisville and
Nashville, that company stands ready to
pay 1t after proper accounting. The coun-
sci for the Georgia railroad said that the
Centrals receiver Mr.. Conner paid $780,
900, in the course of four yeats, towards
making up the Centraps part of the def
cit in the rental. The Central had up
$500000 in securities to protect the lease.
If the Central failed to pay Its rent, the
securities would have been forfeited. So
1t had to go into its own treasury or lose
its collateral. That is why the receiver
paid out 100000 from the Central's treas
ury on account of the Georgia railroad
lease. He wanted to save that $5O0,0OO, or
the securities which were supposed to be
worth $j00,O00 The Georgia still holds a
certificate for about $4,000 OF the South
western railroad stock, but the company
was enjoined from using the certificate
AS Maj. Cummings stated 1t, most of the
securities originally put up by the Cen
trail have no value now. The Louisville
and Nashville has made the full amount
of the bond good by putting up enough
securities TO protect the Georgla's stock
holders.
The Georgla's counsel was speaking of
the operation of the road by the two
lessee companies when Judge Pardee in
quired what the effect would be on tho
public interest If the Southern railway
and the Seaboard Air Line were joint les
sees of the Georgia. Maj. Cummings re-
piled that he did not think the public iu-
terest was In the mind of any party to
the lease when 1t was made sixteen years
ago.
Alex King discussed the Louisville and
Nashville side of the case for two hours,
presenting 1t clearly and forcibly. He
tersely reviewed his clients intervening
bill, and urged that the bankruptcy of the
old Central extinguished its right under
the Wadley contract to voice in the con-
troll of the Georgia. The case will be
concluded tomorrow.