The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-01-09
SOUTHERN RAILWAYS SCOOPS.
COMPANY FILES ITS ANSWER N
THE MACON FIGHT.

Denies That 1t Has Entered Into an
Agreement or Combination for the
Consolidation of the Railroads Of
the Southern States East Of the
Mississippi River-It Also Denies
Being i'm Control of the Central OF
Georgia RaiIway-Georgfa. south
ern and Florida Not a CompetinG
Line.
Macon, Ga, Jan. S.-The Southorn Rail-
way Company, through its attorn,s. eH-
Senator Edmunds, Francis Lynds Seetsoh
Hoke Smith and Marion Erwin. fled its
answers to-day in the United Stai.s Court
10 the suit brought by the DunlD HART
ware Company and other citizen Of Ma
con to determine the right of me south
ern to operate railways in the state OF
Georgia under the constitution o. the
state. 1t is by far the most important
railroad litigation that has ever been
known to the courts of Georpia. Tine
main points of difference are a. follows;
First, the Southern denies that it has
entered into an agreement or combination
for the consolidation. as ALLEGED 10 the
bill of the railroads of the Southern states
east of the Mississippi river. On the con-
tYary, it insists that its whole plan has
been with a view to the Organization
maintenance and operation of continl-
Gus lines, not competitive. and to carry on
such operation as would promote the
traffic, increase the facilities and lessen
the expense of the citizens having bust
ness with such lines.
Second. The Southern expressly denies
that on the S1st day of December, 1885.
or at any time, the receiver turned over
10 it the control of the Central Railway
of Georgia or any of Its branches. openly
and -4otoriously, or otherwise. Prior 70
the organization of the Southern the
Richmond and West Point Terminal was
a creditor of the corporation known as
the Central of Georgia Railway Company.
1t also held indirectly part of the stock
of the Central Railway of Georgia. When
the West Point Terminal Company failed
a committee selected by it's security hold
ers took charge of all Its assets. This
committee received stock of the new Cen
tral railroad of the state 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 Company were nan
died by its committee of reorganization 1t
was expressly declared that, while the
REORGANIZATION committee must make ev-
cry effort to protect the assets which II
received from the Central of Georgia, II
was expressly provided that these assets
could be reserved to and vest in the re-
organization committee TO be disposed Oh
otherwise than by transferring the same
to the new company. AT all tunes the
reorganization committee has retained Inc
control of all the capital stock OF said
Georgia Central Railway Company e>@ePt
the shares owned by the directors, ana AT
no time has there been any contract OF
agreement or understanding by SAID COM
mjttee by which said Southern Railroad
has been or is entitled to any interest or
right or control of property or stock IN
the Central Railway Company.
The Southern disclaims any interest,
actual or assumed, either in the stock or
securities of the Central Railway Com
pany On the contrary, IL expressly
alleges that 1t operates with the Western
and Alabama, Nashville, Chattanooga ana
st. Louis and Louisville and NashVhie
lines to the disadvantage of the southern
Third. 1t is further shown in the an
swer that. while the Southern holds the
minority of the stock in the Georgia
Southern and Florida, that company Is IN
no sense a competitive line to any branch
of the Southern.
AS to the other lines, the Southern has
absorbed, the answer shows the same state
of facts and it is fully shown that these
lines, since they have come into the pos
session of the Southern, have been i'm
proved. better facilities have been fur
nished to the patrons of the lines, and the
charges for the services have been de-
creased.
Fourth. Elaborate exhibits are attached
TO the answer setting forth In detail the
contracts between the reorganization
committee and the original holders of the
securities of the West Point Terminal
company, showing that the Southern has
NO interest in the company.
Elaborate exhibits are attached to show
the present rates of charge on the South
ern line to substantiate the claims that
prices have been reduced, while the ser
vice has been improved.