The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-02-24
TERMINALS BIG BLANKET
WHAT Is TO BE DONE WITH THE
S25,Ooo,ooo OF BONDS.

Georgia, the Richmond and Danville
and West Point Preferred and Their
Trust Bonds, or for Betterments OF
the Terminals Property.
There is no little curiosity as to what is
TO be the outcome Of the recent action of
the Richmond Terminal Company in deter
mining to issue SIS, 600 of bonds.
Opinions seem TO be somewhat divided
among railroad men as to some of the de-
tails of the plan.
A gentleman Of this city who is CON
sidered an authority in these matters said
yesterday: while / do not care to be
quoted in the matter, do not object to
giving the MORNING NEWS my understand
ing If what is the object Of the Terminal
company. AS you know, the Terminal
company has given its obligations for the
unpaid stock Of the Georgia company,
which obligations are to be paid May IS,
1889 with the proceeds Of the first S., 000,-
900 of the $3.50 0,000 Of bonds to be
issued by tue Terminal company. This fires
issue of IS 900, 600 of bonds has been tax I
by Malta d, Phelps & Co. a d Kessler ~
Co. on their own account, aud they are to
paw for them as fast as the bonds are placed.
The second block of $5,000,000 is to be put
aside to retire the old outstanding bonds of
S50O0000 is to be put aside to protect the
preferred stock Il the Terminal company.
slO,O000O0 FOR IMPROVEMENTS.
This as you W II see, leaves 1000, 900
block of bonds which will be sold from ii ne
to time, and the proceeds used for extend
ing the Georgia Pacific to the Miss issippi
river to connect with the Gould system,
and also to increase the Ocean steamship feet
Of vessels so that there will be daily line of
err So y 20 Ma. nd
tri-weekly line from Brunswick. 1t is the
intention to largely increase the terminal
facilities and give the very best terminal
facilities for the two cities. 1t would be-
impossible for Savannah to accommodate
the increased traffic which the connection
with the Gould system contem plates, al
though the policy will be to remodel the
Ocean steamship wharve5 here. AMI am lie
facilities for loading and unloading vessels
will be provided for Brunswick. This will
not provide for any extension of q road
from Eden, as the Central has already
line direct to Birmingham"
With this Information in hand, a proni-
nent railroad official was seen and he was
asked what he knows about the designs Of
the Terminal company.
A RAILROAD MANS SIDE OF IT.
81 am not a member Of the Terminal
directory" said the official, "but know
that the executive committee of the Ter
minal board has had two or three meetings
lately, and that the issue of the S25, 900 900
| bonds has been agreed upon, but think the
gentleman, VIII ever ne may be, who gave
you the Information as TO the Terminal
plans must have very vague idea of the
policy If the Terminal company. | take it
| that the Ocean Steamship Company would
be very glad to have the Terminal company
| borrow money on the credit of the latter
to build steamships for the ocean steamship
flo t, and to remodel its wharves AMI in
crease its terminal facilities. Still the bust
ness way would be for The Ocean Steamship
Company to furnish its own securities, nor
do think it pro able that The stockholders
of the Ceatral will be so fortunate as to get
what it needs, cars, engines, ETC., on the
credit OF the Terminal company, without
having 10 share in tie burdens. TIE ecu
trail Railroad and Backing Company has
prope ty of its own to secure loans for an
increase of is rolling stock, and for build
ing its Eden extension. Each road ought to
stand on its Nn credit.
ABLE To LOOK AFTER ITSELF.
"If the East Tennessee, Virginia and
Geo. gia wants better facilities at Bruus-
wick, it should raise its own money, aud
there is no reason why the Central should
have to share in the extension of the Geor-
gIa Pacific, which is under he coatroi, by
lease, of the Richmond and Daavills.n
"Do | understand you to infer that the
Terminal company, having control of the
Central, the Richmond and Danville ana
the East Tennessee, Virginia and Georgia,
could not carry out the scheme suggested if
it deSiredP
NO. do not say that it could not do so,
but that | do not think it ia Contemplated
or that it will do so. / repeat that your in
formant must have a vague idea of what
he Terminal company propose, to do,if he
hat he. Dc Of 3 h..
bonds are to be applied in the direction of
building new steamers for Savannah and
Brunswick, for wharf facilities at the
sout lern terminal points of the Central
and the East Tennessee, Virginia and Gsor-
gia syste IS, and for an extension Of the
Georgia Pacific railroad to the Mississippi
river.
"As understand it, the issue of $25,O0O,-
900 bonds is intended to retire all outstand-
ing obligations of the Terminal company,
and also to acquire the stock of tie East
Tennessee, Virginia and Georgia and the
Richmond and Danville, a part Of the stock
of both roads being now held by The public,
but greater part of which is held by the
Terminal company.
THE TERMINALS OBJECT.
'In other words the object OF the Termi-
nal company evidently is to embrace all ITS
stock in one issue, and representing its
whole indebtedness: in brief the Terminal
company wants to own the entire stocks of
all three roads, the Central of Georgia, the
Richmond and Danville, the East Tennes-
see, Virginia and Georgia, and possibly the
Memphis and Charleston, now controlled
under lease by the East Tennessee, Vir-
ginia a ID Georgia.
"The $25 GOO, 00J OF bonds the Terminal
company will issue. ! think, would be di-
vided as follows: 81, 900, 900 to pay for the
10000 shares of Georgia company stock,
and secured by S12, 900, 900 # Georgia stock
$4,NO,OO0 to ny up the S4.000009 bonds Of
the Georgia company. These bonds when
bought in can be held or cancelled. as can
the stock which may he set down as
mere assets and only question of book
keeDng in the affairs Of the company.
$1,000, 900 TO buy the X chmoud Terminal
preferred stock, secured by Richmond and
Danville stock TO the amount Of &, sol 900;
$75O0,000 to buy Richmond Terminal col
lateral bonds, secured by miscel ane1us Sc
curties 10 tho amount of $lS639,2l0;
S4,500,000 to tuy first preferred, second
preferred and common stock Of the East
Tennessee, Virginia and Georgia, with Sc
curities OF first preferred Of 81 10000, Sc
ond preferred sls,50o,OO0, and common
$27, 100000
THE CENTRAL's MINORITY STOCK.
"You will observe that this exhausts the
SOS, 100000 issue, aud no provision is made
to absorb the stock OF the Central owned by
the public. What the basis Of the absorp-
A. l. Al.