The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-03-20
IN A RECEIVEk'S HANDS.
The Florida Southern Bondholders
Foreclose the Mortgage.

VI OSlSoO O14O 1nOL OH az O.
Fl ON the Florida Times Union.
The Florida Southern railway passed into
the hands of q receiver Tuesday.
A bill was filed Tuesday morning in tie
United States circuit court for the northern
district of Florida, by the trustees of the
first mortgage bonds, praying for the fore
closure of the mortgage and the appoint
ment Of a receiver TO adjust the affairs of
the road. Judge Swayne, who had in
tended, together with the other officials of
the court, to leave for Pensacola on Mon
day night in order to open court there yes
terday, was induced to defer his journey
one day for the express purpose of attend
ing to this matter. H.
There are two classes of first mortgage
bonds on the property of the Florida
Southern railway-one on the property of
the Charlotte Harbor division, the other on
that of the main line, the parent corpora
ton. The American Loan and Trust Com
pany of Boston, trustees for the former set
of bonds, was represented by Henry ID.
Hyde of Boston as counsel; J. Lewis Stack
poIs of Boston appeared as counsel for the
trustees of the latter set, the New England
Trust Company of Boston. Associated with
them as counsel is Horatio Bisbee, Jr, of
jacksonville. Fletcher & Wurts appeared as
attorneys for the company. j. r. Parrott
of this city, counsel for the Jacksonville,
Tampa and Key West railway system, was
appointed receiver. The Jacksonville,
Tampa and Key West Company. as is we'll
known, operates the Florida Southern road
1t Is also the owner of a majority Of its
stock.
These two sets of bonds aggregate about
1000, aud the appointment of re-
ce1ver was at the request of the holders of
about % per cent. of the bonds This course
of action was decided upon in order to
facilitate a settlement of the affairs of the
company and to perfect its reorganization
Since July l. 1888, the interest," on these
$3,0O0.000 of bonds has been defaulted.
They bear & per cent. interest, and since
that date the earnings of the Florida South
ern company have been insufficient to meet
this, sum aggregatihg nearly $lS0,000 an
nually. These securities were originally
held largely by New England investors,
but their exact ownership at
present cannot be accurately de-
termined until the names Of the holders
have been scheduled by Receiver Parrott
The course to be pursued is that uniformly
adopted in the appointment of railroad re-
ceivers. The exact amount of the roads
assets and liabilities will be ascertained, and
ultimately the road will be sold at auction
for the benefit of all concerned. OF course
it is little early to predict who the pur-
chaser will be, but one of the parties at
interest will, in all probability secure
control
Mason Young, vice president of the Jack
sonville, Tampa and Key West Railway
Company, was seen at the Windsor hotel
Receiver Parrott was with him. Mr.. Young
was asked if the appointment of a receiver
would make any changes in the operation
of the road.
'None whatever was the reply. SIT
will run along as usual, operated by the
Jacksonville, Tampa and Key West, as it
has been since the consolidation nearly two
years ago. There will be no change of pol
icy, and no disturbance in the Internal
machinery of the system. This step was
decided upon as the Il est for all concerned
both the bondholders and the stockholders.
These two classes of first mortgage bonds
comprehend the entire bonded debt of the
company. No other bonds were ever issued
Tnis was the best way out of the compa ny IS
enbarressments, and the filing of this bill
of foreclosure is not the result Of any
friction between the bondholders and the
owners of the road. | apprehend as the
result of this action nothing which will en-
barrass the operating company in its man
agenent of the road as at present.
"WiIl the new arrangements affect any
of the officers of the road! VIII any Of
them be removed"
'You will have to look to Mr.. PARROT
for an answer to that question. He is the
receiver of the road and is in full control of
its affairs"
Mr.. Parrott said that it was his intention
TO reappoint all the present officers at once,
and that no changes of any kind were con-
templated. The matter of adjusting the
roads financial affairs and efIecting a sale
of its property rights and franchises will. he
said, necessarily take some time. for many
legal processes will have to be gone through
with. But it is his int ton TO expedite
matters as much as possible under the cir
cuInstances.
John w. Gambler, one of the Massachu-
sets delegation in congress, is president Of
the Florida Southern, and its directors
have been in the past mainly New England
men.
The Sc. Johns and Lake Eustis division Of
the Florida Southern road is not affected
by this receiveishp. IL is an independent
CORPORATION entirely.