The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-01-02
WILL GET BACK ITS STOCK.
LEASE SETTLEMENT GIVES CEN
TRIAL IT'S SECURITIES.

One Thousand One Hundred and
Ninety-eight shares of Southwest
ern stock VIII Come Back-NOVv
Held by Georgia Railroad and
banking COmpany-SecurIty for
Payment of LeRse-The Lessee Has
Drawn Dividends on the stock.
History of the Lease-OriginaIIY
Made to Col. WadIey in 1851.
The report that Messrs. Thomas and
Ryan had given up the half they claimed
in the lease of the Georgia railroad, has
The settlement of the differences pending
for some time is of great Importance, as.
in The way it turned out. the Louisville
and Nashville now has undisputed con-
troll of the property.
Although the dispatch published In the
Morning News yesterday did not state au-
thoritatively that the matter had been
settled in the way mentioned, there seems
little ground for believing that il has not
been. Mr.. John NJ Egan, vice president
of the Central, who has had close con-
nection with the entire history of
the case, was not greatly surprised,
evidently, at the news. It seemed
TO have nothing of the unexpected in it for
him. When asked If he knew how the deal
had been made, Mr.. Egan replied that he
did not
DO you suppose Messrs Thomas and
Ryan decided their claim was not tenable
and gave it up on that account" he was
asked.
mo, think not" was the reply. "There
was doubtless a consideration inducing
them to retire in favor of the Louisville
and Nashville"
Col. A. r. Lawton of the firm of Law
ton * Cunningham attorneys for the Cen
trail, said the matter has probably been
settled by compromise, the parties
abandoning their claim receiving some
thing in return. The outcome of the case
gives the Louisville and Nashville fun con-
troll in every way.
Since the latter part of 1895 it has been
virtually controlling the Georgia, the gem
eral manager of the latter, Mr.. t. X.
Scott, working in conjunction with the
Louisville and Nashville.
The history of the lease of the Georgia
road is interesting. Legal complicat tons
and strong fights in the courts signalize
it, but it is now likely that it is
cluded If the report of the retirement Of
Messrs. Thomas and Ryan Is correct. Mr.
Egan says the adjustment of the differ
ences that have existed will be welcomed.
The Georgia railroad was leased to Col
Wadley in 1881 by the Georgia Railroad
and Banking Company. This lease cover
ed all the railroad of the company and
the stocks and bonds of other roads. The
entire lease was made to Col. Wadley but
a few months later he transfer
ed 1t to the Central railroad and the
I N11i-x 10 hale
The rental annually to be paid the COM
pany by the lessees was $60000 100000 of
which was to be paid Sept. so and 100000
March 81. This rental of 100000 was
about 10 per cent. Of the capitalza-
ton of the property leased. Ever since
the deal was made the Georgia Railroad
and Banking Company has paid dividend
of about II per cent, there having been
some of its property not included in the
lease that helped to run up the 10 per cent
it secured for the stockholders
The lease carried with its quite an inter
est IN the Port Royal and Augusta rail-
road. The Central already owned a good
deal of the stock of this road. and its ac-
QUESTION of one-half of that owned by the
Georgia gave 1t control. The lease also
carried with it one-half the stock of the
Western Railway of Alabama and a large
proportion of that of the Atlanta and
West Point The Central is also interested
some interesting results may follow the
Louisville and Nashville taking possession
of the indisputed lease that gives il in
creased holdings in the two lines. For
some time the Central and the Louisville
and Nashville have been watching each
other when any issue relative to either Of
the two roads in which they are interested
has been imminent. Careful consultation
OF attorneys have preceded all steps and
the status OF affairs al its best has been
but an armed neutrality. The memory of
the injunction that was brought some
time ago against Mr.. Egan voting certain
STOCK at the annual meeting of the Wes-
tern of Alabama is still fresh. This was
secured by President Milton Smith of the
Louisville and Nashville, who did not ex-
actly care to have the Central work a couD
detat and acquire control. The latter road
now has three directors, members of the
board of the two roads.
TO return to the history of the lease. It
continued through all the vicissitudes of
the CentraPs career, the half OF the rental
pelng regularly paid even during the
stormy times Of the receiVership There
was then no question as to the ownership
OF the lease. as both roads were keeping
right up with the payments. The receiver
OF the Central continued to control its half
IN the Georgia up 70 the time of the reor-
ganization of the Central by the present
company in 1896 The new organization
seemed willing to let the payment lapse,
SO far as it was concerned, and since
Nov /, 1895. they have been paid in fun by
the Louisville and Nashville. Since that
ume the Central has had no voice in the
management OF the road
This. according to The terms Of the lease
assignment TO the Central and the Louis
vile and Nashville by Col Wadey. was
to be effected through six commissioners.
three Of the board to be appointive by
each Of the lessees. For some time the
control of the commissioners has been only
nominal. the real head being in General
Manager Scott. who is a very masterful
official. The practical control has been
with the Louisville and Nashville, through
Mr. Scott. and the road has denied Messrs.
Thomas and Ryan's right TO any voice in
the matter
Tho New York firm came by its claim
through its purchase of the Cen
trails interest in the lease
in September of 1895. when st was put up
for sale by the Mercantile Trust COMPANY
Of New York For some time the firm has
been at Issue with the Louisville and
Nashville over the lease In the United
States court
As a result Of the settlement of the
matter and the assumption Of the entire
al nv ha I nd