The Savannah morning news., 1901-02-17

remarkable proceedings against their
company, and to indicate what a calam-
!ty it would be to their company il, per-
chance, the said proceedings should be
successful. 1t is 90 be hoped that no 9TH
er stockholder can be so deceived as to
Join In this litigation against his or her
company. Your board has determined
TO resist to the utmost the efforts of these
parties, which they are making against
your company, to establish these unreal
sonable and unjust demands. We are ad-
vised by the attorneys of your company
that the stockholders have no reason to
rear that the suits thus pending against
the company can meet with any success.
The creation and preservation of this
reserve fund has more than once been
approved by the stockholders in their an
nual conventions assembled. The wisdom
and propriety of II cannot be questioned
by any conservative stakeholder.
Touching the disposition and distribution
of the large fund received by your COM
pany in November or December, 1895. out
of which, at this late day, has sprung the
litigation referred to, every stockholder
whose address was known-and very few
were unknown-was notified just what
disposition would be made of said fund.
Under date of Nov. II. 1886 the following
circular letter was sent out to the stock
holders:
Macon, Nov. u, 1870 the Stockhold-
ers of the Southwestern Railroad Com
pany: 1t has become the duty. and 1t is
the pleasure of your board to inform you.
that the struggle which has been so con-
tnuously and laboriously carried on for
the past three years to preserve your
property from the destruction threatened
through its entanglements with the Gem
trail Railroad and Banking Company of
Georgia, after the insolvency of that COM
pany, has reached a successful termina-
ton. A lease in perpetuity has been sign
ed and your road delivered hereunder to
the Central of Georgia Railway Company.
BY the terms of this lease your COM
pany is to receive a rental equal to 5 per
cent. interest per annum upon it's capital
stock, beginning from Nov. l, 1885, under
which the first payment of rental is to
be made on Jan. | next, which will cover
the months of November and December of
this year, and thereafter payments will
be made OH the first day of each July
and January.
Provision is made for payment by the
lessee of all necessary expenses for main
tanning your organization and for the
transfer of stock and the distribution of
dividends, so that per cent. rental will
be net to the stockholders. Also your
company is relieved and acquitted of any
and all liability growing out of Its being
a party to the so-called tripartite bonds
and from its Endorsement upon the bonds
of the Montgomery and Eufaula Railway
Company. thus leaving your company en-
tirely free from debt. In addition to this,
the lessee is to pay to your company the
defaulted rental of the Central Railroad
and Banking Company of Georgia on the
basis of 5 per cent; that Is, your COM
pany will receive from the lessee a sum
equal to per cent. annual dividends on
its capital stock from July 1, 1892, to Nov.
l., 1895, amounting in all to 1855, 1884.
Your board has determined, so soon as
this money shall be received, and which
it is believed will be during the present
year, to declare dividend of 10 per cent.
10 the stockholders, payable to those of
record at or about the date of declara-
ton, notice of which and notice as to
closing of books will be duly advertised.
out of the said sum OF 1885,, 1S3.S4 so to
be received for back interest. your direc-
tors have agreed to pay approximately
$40 600, which will cover all fees and ex-
penses of litigation and compensations Tor
all services rendered to this company oy
those who have conducted the negotiations
which have led to the present most salts
factory status OF your company. After
the payment of said dividend OF 10 per
cent. and said sums to cover ices, eX-
penses etc, there will be left in the
treasury of your company about T0,OoO,
which your directors think should be in
vested to meet such unforeseen contingent
cies as may hereafter arise. Your di-
rectors feel that YOU should be satlsned
with the outcome, which places your
property free from debt and entangle-
ments of every kind and upon such basis
that for the future there can be no rea-
sonable doubt of your receiving an an
nual 3 per cent. dividend upon your stock.
we at least are gratified at the result
and, believing that you will be, congrstu-
late you.
"R. T. WILSON, President
~. S BAXTER, Vice President
"B. A. DENMARK,
~. F. MINIS,
"T. B. GRESHAM.
~. M. JOHNSON,
"W. C. RAOUL.
wv. r. cox,
Directors"
This circular letter, or what 1t sub
stantially contained, was published IN the
.r~~T Any A NTTD