The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-03-05
THE TYBRE RAILROAD.
The Old Directors Re-elected-Presi.
dent Purses Annual Report.

Q6Qt EQIae annual a6DoEL.
The annual meeting of the stockholders
Of the Savannah and Tybee railroad was
held yesterday at noon at Metropolitan
hall A majority of the stock being repre-
sented, Mr. John G. Butler was elected
chairman and J. W. Burroughs, ESQ.,, was
requested to act as secretary. President
Purse presented his annual report accom-
panied by that of the treasurer The re-
ports were received and referred to the in
coming board of directors. The old board
of directors was unanimously reelected
and the meeting adjourned.
President Purse in his report gave a re-
sumo of the company's history and dealt at
some length, with the causes which led to
the control Of the property passing into the
hands of the court. He reviewed the enter
prise from its inception and dwelt upon the
difficulties and discouragements that the
company had TO contend with in carrying
out its plans. The abandonment of
the first contract to build the road,
by Contractor Inness and the
delay in opening it at the time specified,
causing the loss Of one seasons business
resulted in an aggregate loss to the COM
pany of nearly $4,000. This loss, and the
disasters to the uncompleted road by the
August freshets of 1887 shook the conf
dence of the friends of the enterprise
aud combined to render the negotia-
ton of bonds for its completion impos-
ssible, except at sacrifice, which
the directors were unwilling to accept.
This brought the directors face to face
with the necessity that to demonstrate the
feasl oility of the enterprise aud to establish
its success, they must personally supply the
means for that purpose. That the road was
completed and was given every opportunity
to demonstrate its value and the lasting and
,.I, IL.
rails of its construction. and that, unin-
numbered by the accumulation of success
sive disasters, its ability to earn a fair re-
turn upon the cost of construction, the
president said, attest with what faithful
ness the directors have guarded the trust
committed to them and the liberality with
which they sustained the company, as long
as there was any hope that by their assist
ance it could be returned to the stock
holders intact. When after the other losses
it had sustained, damage suits were pressed
against it for extravaganza sums, the
directors allowed it to pass into the hands
Of the substituted trustee for the bondhold-
ers in the Oglethorpe Savings and Loan
Company.
The bondholders are now acting as unit,
the president said, in the foreclosure pro-
ceedings, TO reduce the attendant expenses
to the lowest possible amount for ATTORNEYS
ASNo am SOhL U SLAoi goo dtlu W1guOuJ dllOW-
ance for receiver, as A lderman Myers will
decline any compensation for his services,
to tighten the expenses in
rehabilitation of the company after the sale
OF the road, which, it is expected, will take
place the first Tuesday in May. Besides
being large bOndholders, the directors, IN
their individual capacity, are the holders
OF all the company's unsecured obligations,
and also are large holders Of the preferred
shares fn. which fhaxr ,a f.,ll f,o
value in cash. At the sale of tine road in
May the directors invite all the holders Of
preferred shares to join them in the pur-
chase at any price that NAV be agreed upon,
In the same manner and on the same
terms as though each of them had been
advancing for the completion Of the road
Considering ths vicisstudes of fortune
through which the company has passed. the
president said that 1t seems almost increii-
BILE toat the directors have been able, no.-
outstanding the losses resulting from the
failure of the first contractor, to carry out
the construction of the road thus far, on the
original plan with scarcely a change that
was not III the nature of an improvement,
ana thaC tne receiver, taking
up the work where the company was com
PEELED to stop, will be able to bring the road
into its own depot, and fit it up for the ac-
conmodation Of freight and passengers, all
within the stipulated price of construction
when the work was begun. Mr.. Innes,'
contract called for first mortgage6 Der cent.
bonds at par $l50,000 and $50, 900 cash. and
provided for engineering expenses, rigat of
way, ETC., first mortgage bonds So, 900
making a total of 1925, 900. For
these purposes an issue of $l75. 900
first mortgage bonds and $4,000 in
preferred capital stock was made There
has been paid out for construction, other
than the capital stock $2lI,22l IA. It will
cost, the president said, to bring the road
into its own depot, and provide accommo-
dations for passengers and freight as now
being done by Receiver Myers under direc-
ton of the court, 81, 900, and to paw for the
right of way to the estate of Lamar and the
Savannah, Florida and Western Rail-
way Company $4,000, making a total of
1924, 1921 IA.
Everything in the future of the enter.
prise, the president said, is promising, and
as Tybee becomes more attractive every
year and with the growth of Savannah and
the Importance of the island as resort. the
road must continue to increase in value.
1t would have been a source of
great satisfaction to the directors
had 1T been possible by any greater reason
able personal sacrifice on their part to have
prevented the road from passing into the
hands of the court, but this, in their judg-
ment, was impossible, even though the pre-
terred shares had Teen taken, and the entire
issue of bonds had been placed at par.
The treasurer's report shows the
earnings of the company to have been
S29,373 35 and the operating expenses
$2I, All 81. In the operation of the road,
unler the surroundings, the president said
1t is not the least remarkable thing that the
expenses should have been kept within the
receipts