Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-01-27
SAYS SPEER
WRECKED
CENTRAL
A. R. Lawton Adds to Long List
of Charges Against
Judge.

SAVANNAH, Jan, Exchanging
that Judge Emory Speer, by his ia
nous midnight order" wrecked the
old Central of Georgia Railroad ana
Banking Company, when he placed 1t
In bankruptcy In March, 1892, Colo
mel A. r. Lawton, vice president
of the Central of Georgia Railroad,
this morning added to the long
list of accusations that have
been heaped on the Federal jurist
since the special Congressional COM
mittee last week began the investi-
CATION into the judges record on the
bench of the United States Court for
the Southern District of Georgia.
"Could Have stood Panic"
Colonel Lawton this afternoon was
recalled and questioned with reference
to furnishing transportation for Judge
Speer.
"He had transportation for himself
and his family and was the only man
know of, not excluding officials OF
the road, who transported his freight
free" declared Colonel Lawton. THE
president of the company did not en-
Joy this privilege The practice was
dispensed with at the enactment or
the Hepburn bill"
Judge Galloway, of counsel for
Judge Speer, read into the records
letter from Judge Speer to counsel
Lawton and Cunningham, of the Cen
trail of Georgia, declining to annul
intra-stat transportation for 1907,
the first year the Hepburn law was
effective.
Gould the Central Railroad have
survived the panic of 1898 had 1t not
been for Judge Speer's action?' Con-
gresham Fitzhenry asked of Colonel
Lawton.
Most positively it could" said Col
onel I.awton.
The receivership suit was first
known as the Rowenaf Clark case.
Mrs Clark, a widow, of Charleston,
s. c., was then half owner of the
Centrars holdings
Colonel Lawton was closely
questioned by Representative Fftz-
henry at the morning session as
to the. 1892 bankruptcy proceedings.
He said the par value of its total
stock then was $500, 900 and its mar
ket value better than S8.2b0,000. The
Central Of Georgia Railroad and
Banking Company, acting as hold
ing corporation controlling a number
OF subsidiary railroad lines, he said,
had been paying dividends for num-
Der of years, when, without notice,
Judge Speer appointed r. II, Alexan-
der then president of the company
as temporary receiver, and ten days
later, on March IA, 1892 made the re-
ownership permanent.
Destroyed Roads Credit.
The receivership was ordered by
Judge Speer, said Colonel Lawton,
because control of the property had
been acquired by a New York syndi-
cate that was operating II to the ad-
vantage of the Richmond Terminal
Company, which controlled the Rich
mond and Danville Railroad. Judge
Speer, he said, held that this control
was In violation of the com peitors'
| clause of the Georgia Constitution;
| that the directors were managing the
property in the interest of the Rich
mond Terminal Company instead OF
| the stockholders OF the Central OF
| Georgia Railroad and Banking Com
pany. The naming Of the receiver
and the expenditure of the companys
funds under Judge Speer's orders,
| Colonel Lawton declared. absolutely
destroyed the credit Of the company
| and wiped out the savings that per-
sons of small means had put into
stock Of the railroad.
Colonel Lawton was followed to
the stand by General Peter w. Mel
drim, one Of the most celebrated OF
Southern attorneys, playmate during
boyhood and classmate at college with
Judge Speer.
General Meldrim picturesquely re-
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