The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-11-18
NEUTRALITY-SUSPICIOUS.
GEN. ALEXANDER EXPLAINS SOME
THINGS ABOUT IT.

1t Practically Covers the Floating
Debt Of the system-How It Was
Negotiated-No Doubt About the
Road Being Able to Carry 1.-THE
Outlook for the Central Bank.
The November meeting of the board Of
directors OF the Central railroad was held
yesterday at the Office Of the president, in
the Central Railroad Bank President
Alexander presided. Besides the resident
directors. Col C. h. Phinizy of Augusta
and Uriah B. Harold of Americas were
present
There was nothing OF public interest in
the meeting. Gen. Alexander said, it being
simply the regular monthly meeting
Gen. Alexander has been looking after
the loan recently negotiated for
the Central He said yesterday
that all the arrangements to pay the Cen
trails floating debt are now complete and
the loan, as announced several days ago.
had been contaminated through Speyer &
Co., who are close friends OF John c. Cal
houn.
COVERS THE FLOATING DEBT.
Il practically covers the floating indebt-
edness Of the Central railroad. Tn exacte
amount Of the loan as already stated, is 3d.
IL
no increase in the Indebtedness of the Gen.
trail. but is simply consolidation of the
present Indebtedness. The debt will
now be In the hands of one
party instead of being divided among a
number. Bonds for the amount of the loan
will be issued at per cent, which will be
taken by Speyer & Co.
The Centrars indebtedness was as
spmed by the Richmond and Danville
when it purchased the Central Gen.
Alexander said the total floating in
debtedness Of the Central-abous "a, 900 900
has accumulated during the last thres or
four years upon properties upon which no
bonds bad been sold or money borrowed.
These properties are represented as fol-
lows: 81, SIC, 900 of Port Royal aud West
ern Carolina bonds, and S1S4,O00 of its pre-
ferred stock, for which par was allowed in
the purchase of the road; 81 900, 900
of bonds Of the Savannah and Western for
lines constructed and purchased for that
company; In treasury over $500, 900 Mobile
and Girard railroad bonds for building the
extension on that road.
TO PAY FOR THE NEW SHIPS.
part of the indebtedness was also In
Cured in the building of the steamships
Kansas City and City of Birmingham FOR
the Ocean Steamship Company at a cost of
between 100000 and 5000, 900, and In addi-
ton about $500, COO was paid for wharf prop
erty in Hoboken. About $3.50, 900 was paid
for lands along the projected belt road
around Atlanta The increase of rolling
stock, betterments of road, iron
bridges, additions TO side-track aud
new yards at Macon, Eufaula, Albany.
Columbus and other points have also res
quired large outlay. This, Gen. Alexan-
der added, shows the Central railroad In
have over $4,000 900 of bonds and other
property to represent fits indebtedness of
less than 81, 600. 900. besides the great i'm
provement and additions that have been
made to its own track, rolling stock and
yards.
Gen. Alexander believes as a result of the
loan all Central railroad securities will adj
vance III value, as the affairs of both the
Central and the Richmond and Danville
are now in satisfactory condition.
AN INCREASED EARNING CAPACITY.
Gen. Alexander was asked if the earnings
OF the Central railroad will pay the interest
upon these bonds in addition to other ex-
penses
The earnings. he replied, were sufflc-
lent TO pay the interest upon the indebted
ness while in the hands of the Central, and
there can be no doubt that the earnings
will be greater now that the road is in pos
session of the Richmond and Danvil!e.
having the backing and assistance of a
much larger system in addition to its own
line," be added, ut should certainly carry
hOiO i0lSus budu DeIOro ana With COuSe-
quently greater earnings. The reduction In
rates from Memphis to Liverpool via Sa-
vannah shows what the Richmond and Dan.
vile is doing and will do"
THE CENTRAL BANK.
Gen. Alexander was asked about the
condition of the Central bank. He said
that tue 100000 capital guaranteed it has
been put into 1T and the operations of the
bank are being conducted upon the same
scale as before the lease He said the bank
Will be more valuable to the city than be-
fore, because before it was being continu-
ally called upon to lend its money to the
Central railroad, which will not be the case
now.
Gen. Alexander said he was not posted az
60 the fight between the Richmond and
Danville and the Sam road except from the
Richmond and Danville side of
IT, from which it appeared to him
that the Sam road has taken ad-
vantage of its contract to 90 into points
IN the Centrars territory, Columbus.
for instance, and secure freight to be-
brought to Savannah over its own lines
while. in hauling freight from Savannah
70 that point, it would turn it over to some
other line.