The age-herald., 1898-01-09
SOUTHERN FILED ANSWERS Suit Brought by Dunlap Hard
 ware Company TO DETERMINE THE RIGHT Of the Southern to Operate Railways in Geor- gia Under the Constitution of That
 State-The Main Points,

Macon, Ga, Jan S.-The Southern Rail- way company, through it's attorneys, ex- Senator Edmunds, Francis Lynde Stetson, Hoke Smith and Marion Erwin, filed it's an- swer today in the United States court to the suit brought by the Dunlap Hardware company and other citizens of Macon, to determine the right of the Southern to operate railways in the state of Georgia under the constitution of the state. It Is by far the most important railroad htiga- tion that has ever been known to the courts of Georgia.
 The main points of the answer are as follows:
 l. The Southern denies that it. has entered into an agreement or combination for the consolidation, as alleged in the bill, of the railroads of the southern states east of the Mississippi river. On the contrary, it insists that it's whole plan has been with a view to the organization, maintenance and operation of continuous lines not com- petitive, and to carry on such operation as would protect the traffic, increase the facilities and lessen the expense of the citizens having business with such lines.
 2. The Southern expressly denies that on the 31st day of December 1895, or at any other time, the receiver turned over to it the control of the Central Railway of Geor- gia, or any of it's branches, openly and mo- toriousy or otherwise. Prior to the organ ization of the Southern, the Richmond and West Point Terminal was a creditor of the corporation known as the Central of Geor- gia Railway company. It also held indi- rectly part of the stock of the Central Railway of Georgia. When the West Point Terminal company failed, committee se- lected by it's security holders took charge of all its assets. This committee received stock of the new Central Railroad com pany in settlement of the liability of the old Central Railroad company to the West Point Terminal company. Under the plan and agreement by which the securities and assets of the West Point Terminal com pany were handled by it's committee or reorganization, it was expressly declared that while the reorganization committee must make every effort to protect the as- sets which it received from the Central of Georgia, it was expressly provided that these assets could be reserved to and vest ed in the reorganization committee, to be disposed of otherwise than by transferring the same to the new company. At all times the reorganization committee has retained the control of al. the capital stock of said Georgia Central Railroad company, except the shares owned by the directors, and at no time has there been any contract or agreement or any understanding by said committee under which the Southern Rail- road company had or is entitled to any in- terest or right or control either in the prop erty or the stock of the Central. It is thus seen that the Southern disclaims any interest. actual or assumed, either in the control of the stock or of the securities of the Central Railway company On the contrary, it Is expressly alleged that the Central company operates with the Vest ern and Atlantic, Nashville Chattanooga and St. Louis and Louisville and Nashville lines to the disadvantage of the Southern. . 8. It is further shown in the answer that while the Southern holds the minority of the stock of the Georgia Southern and Florida, that this company is no sense is a competitive line to any branch of the Southern. As to the lines which the Southern has absorbed the answer shows the same state of facts, and fully shows that these lines since they have come into the possession of the Southern have been improved, better facilities have been fur nished to the patrons of tho lines and the charges for the service have been de- creased.
 4. Elaborate exhibits are attached to the answer setting forth in detail the con- tracts between the committee or organiza- tion and the original holders of the securi- ties of tho West Point Terminal company, showing that the Southern has no interest in the Central.
 Elaborate exhibits are also attached to show the present rates of charge on the lines of tho Southern to substantiate the claims that the prices have been reduced
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