The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-02-02
TO SELL OUT THE ROAD.
THE SAVANNAH, GRIFFIN AND
NORTH ALABAMA IN A BOX.

The Centraps Offer of ST so Per Share
for the Minority Stock Expires and
the Foreclosure Suit to be Pushed
History Of the Road and Its Indebted
ness-How the Central Got Hold Of 1t.
The Central's offer Of 81 80 per share for
the minority stock of the Savannah, Griffin
and North Alabama railroad expired yes
terday. Somewhere within l25 and 100
shares were turned in No more stock will
be bought by the Central, and the company
will now push its suit for foreclosure,
which is pending in tho Spaldmg Superior
Court. The road will be sold out in the
spring for it's bonded debt.
The matter was discussed by the Central
Directors at their meeting yesterday, but
no formal action was taken. The road was
begun before the war, and was for the pur-
pose of securing a connection between
Griffin and North Alabama. It was graded
as far as Newman when the war broke out,
and then things came TO standStill. After
the war the stockholders got together,
scaled their stock down TO one-half and be-
gan again to work upon their enterprise.
This time they ironed the road to Newman
and purchased some rolling stock.
BORROWED FROM THE CENTRAL.
Feeling the necessity of the extension of
the road, they then called in the aid of the
Central, from which they borrowed money
to extend to Carrollton. Bonds were issued
for this money, and also stock deposited as
collateral to an amount sufficient TO give the
Central controlling interest in the road.
subsequently, however, this stock was pur-
chased by the Central. When the
he
trail declined to extend it farther,
and the enterprise again Jagged.
In fact the road has never been extended.
The coupons upon the bonds have
not been PAID and the stock has
been almost without value. Some
has been sold for s. per share, and large
block was sold few years ago for as low
as So 80 a share.
FAILED TO PAY UP
There is a provision in the bonds owned
by the Central that If the coupons are not
paid regularly tine bonds shall become due
and subject to foreclosure. Under the pro
vision the Central filed its foreclosure pro
ceeding and will proceed to sell the road
| The Central holds 5000, 900 of the roads
stock, and has always been the largest stock
holder in it.
! A committee representing the stockhold-
| ers came down to Savannah several weeks
ago and had a conference with the Central
| people, the result OF which was that the
Central offered 81 80 per share for the
minority stock provided it was sent in by
| Fec. /. That offer has now expired. 1t Is
claimed by the minority stockholders that
| Gen. Alexander offered to either give them
- 80 per share for their stock or take that
for the Central's. This Gen. Alexander
denies
THE CENTRALs PROPOSITION
In speaking of the matter yesterday, he
said that there was no reason why the Cen
trial should make any such proposition, and
it only offered the 81 80 per share, because
it desired to make some return, however
small, to the stockholders. THE fact is
sad the General, quoting what another oil
cial of the Central had said, 1.-The Central
! was fooled into the matter in tho first
place, and it has got to get out the best
| way it can, and the only way is by fore
| closure"
The bonded indebtedness of the Savan-
nah and Griffin road last November was in
round figures $4,000. 1t is increasing at
the rate of $500 a month. so that alto
gether the Central is intere ted in the road
10 the amount OF something over 5000 600.
! Its average net earnings are Sl2,000. Each
! year has been accommodating a larger and
| larger debt ahead of the stock and at the
same time the extensions Of rival lines have
threatened to still further destroy It's value
THE OFFER CLOSED.
Gen Alexander was asked yesterday if
the 81 80 offer 20 the minority stockholders
would be renewed, and he replied that it
would not be Iue s,ocauUlde.s nave Dpeu
sticking TO it all along that the Central
offered to sell its stock at the same figure
which 1t offered TO pay for the minority
stock, and that they arr ready TO take it at
that figure Gen. Alexander, however,
says that it is not true that the Central
offered to sell
Something was said at the conference as
to the payment of the back coupons and in
terest, amounting to some $40, 900. the
committee claims to have accepted this
Offer but the Central declined again. Some
thing was also said as to propositions the
Central woald be likely to accept, but there
was no agreement, Gen. Alexander says. to
sell out The Central will now push its
foreclosure proceedings