The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-06-02
OCAL PEOPLE INTERESTED.
LARGE HOLDINGS or NJ. G. AND A.
bonds IN SAVANNAH.

of the Middle Georgia and Allan
tie DeaIs-First Acquired Possess
INN of the Mi11edgevilIe and Ea-
canton Railroad and the Entire
Inc sold Out Later to the Central
of Georgia for $4,000 per Mile.
ratonton Has Never Enjoyed Conn
,,etition. MIR. williams Says-He
Has written Attorney General Ter
reII "a statement of the Facts.
The officials Of the Central Railroad are
,ot The only persons in Savannah who are
Interested in the suit which Gov. Gambler
has instructed The attorney general to
airing against the road for violation of the
ss.-ion of the constitution which forbids
,5s lessening of competition by the alb
s5rpllon of one competing line by another.
The people of Eatonton have complained
"a tbe Governor that the absorption of the
,uddle Georgia ana Atlantic by the Cen
raj has bottled up the town, as previous
n the absorption or purchase they had
access 10 both The Georgia and the Central
railroads with competition by both
routes.
In purchasing the Middle Georgia and
Atlantic and the Eatonton and Milledge-
Via Railroad. which latter line was con-
rolled by the former, the Central issued
SqeO of bonds per mile in payment.
large amount of these bonds Is held in
savannah the Middle Georgia and Allan
,c having been chiefly built by Savan-
nah capital Naturally the holders of
these bonds are interested in the outcome
of such a suit, as it might affect their
sanding of their bonds.s Mr.. j, P. VIII
1ofr hold
of tbe bonds, was seen in reference TO
the suit. Mr. Williams was for some
time az the head of the Middle Georgia
and Atlantic Railroad, and is thoroughly
familiar with its brief history.
1.-THE impression which has been sought
n he created by the reports which have
been given 10 the public about the pur-
chase of the Middle Georgia and Atlantic
hy the Central and the effect of the pur-
chase upon the people of Eatonton, is
false one" said Mr.. Williams. I'm 1893,
when we took charge of the Middle Geor-
eia and Atlantic it was merely a little
piece of track sixteen miles in length, run
ming north from Eatontou to Machen, and
having no connections with the Georgia
Railroad Its connection at Eatonton was
the Muledgeville and Eatonton Railroad
a liue twenty-one miles in length, which
was leased and operated by the Central
In 1898 the Central, being then in the
hands Of the receiver, defaulted upon the
dividends of the stock of the Milledge-
vile and Eatonton. The stockholders OF
the road not being in position to operate
it, made us an offer to take charge. We
finally agreed to do so upon a basis of
proradng expenses and profits. The result
Of the first years operations was that We
nettej enough on their line to pay the
taxes on the property.
In the meanwhile we went ahead ex-
tending our line to Covington.
and at the same time begun
buying up the stock of the Mil
ledgeville and Eatonton branch, eventu-
ally buying the entire amount and replace
ing the stock with an issue of bonds On
completing the Middle Georgia and Attain
tic TO Coyington we entered into an ar
rangemeut with the Georgia Railroad by
which We became the favored connection
of that road at CoYington and Milledge.
vile in return for similar favors This
gave The people of Eatonton no advantage
IN The way Of a competing line, as we con-
toIed the entire line from Covington to
MAledgeville, and our traffic arrangement
was with the Georgia AT that time the
Central was the co-lessee with the Louis
vile and Nashville of the Georgia Rail-
road, and competition was evidently at a
minimum at Milledgeville, the Georgia
haAroad seeming to have no trouble in
getting the bulk of the business.
After the reorganization of the Central
hallfoad with the loss of its interest in
the Georgia Railroad there was a different
STATE OF affairs and We saw the opportunity
OF making good deal with the Central
proposition was made to the latter and
e}eniuafly it was agreed that the Central
should take the Middle Georgia and At
lanlc, underwriting the bonds which had
been ISSUED on the Milledgeville and Ea-
lon'on branch TO the amount of $1,000 a
ME, and giving the Central of Georgia
ponds at the rate of 5000 mile for the
Middle Georgia and Atlantic branch. OF
tnis issue of bonds it was agreed that ST.
w mile should be held by the Central for
Improvement of the roadbed."
1 MS is the whole story of the matter"
sald Mr.. Williams. THE people Of Eaton
ton did not enjoy the benefit of railroad
competition when we entered the field and
never have enjoyed ii. Consequently they
nave no grounds for a case under the sec
uon oil the constitution forbdding the les
Senihs OF competition by the absorption of
one competing line by another. | have
written Attorney General Terrell, in or
uef That ne may have full information Of
me iacts before bringing the suit"
Inc suit brought by the state in behalf
VIC people OF Eatonton is against the
central of Georgia Railway, the Middle
georgia and Atlantic Railway and the
hatonton Branch Railroad combined. In
reaching his decision to bring suit against
me Central in the name of the State, Gov
Gambler said:
Inc petition only asks that the peo-
PIE OF Eatonton be allowed to go into
court for redress of grievances real or
imaginary, and since they could not do
- without the intervention of the state
nave simply opened the door of the
'ourt 70 them. l have passed upon
noIhlng. l have opened the door for
mem and now the court will adjudicate
gier rights. Every person, whether in
plNuual or corporation, should have the
HNllese of having the merit of his con-
teHuoh passed upon by the proper tri-
Duua' and this is a case for the courts
not for the Governor"
iue people of Eatonton allege that the
l'i'Iai has dealt with them In a very ar
mpl'iy manner, that freight rates from
-@'ohton are higher than from almost any
o.l.I point in The state, and that, where
as nom 10000 to 10000 bales of cotton were
-'iAItfiy compressed FatoptOn cfnoa