New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-11
CENTRAL GEoRGIA's DEBT FUNDED.
RELIEF TO RICHMOND TERMINAL-A LOAN FOR
YEAR WITH AN OPTION TO TAKE
THE PLEDGED BONDS

RELIEF TO RICHMOND TERMINAL--A LOAN FOR
YEAR WITH AN OPTION TO TAKE
THE PLEDGED BONDS.
1t was announced yesterday officially that the
gotaons for protecting the floating debt OF the Central
of Georgia Railroad had been finally completed.
syndicate headed BY spcyer Co.. but including kuhn'
Loeb & Co.. L. Won Hoffman q Co., Hallgarten Il Co.
and other banking houses advance 100000 10 the
company on pledge Of the per cent bonds at %.
The loan is for one year from November l, with q
privilege Of mutual renewal for four months longer
The rate of interest per cent and the usual bank
ing commission of 1-2 per cent Is charged The
bankers making the loan have an option to purchase
outright the pledged bonds mt any time within the
sxteen-months life OF the loan. The option price is
said to be In the ghborhood Of So IL is confidently
believed by friends OF the Richmond Terminal. which
controls the Central Georgia. that the banking syndl
cate will exercise its option on the entire amount OF
the bonds pledged. The transaction relieves the man
ayers Of the Richmond Terminal OF one OF the tasks
which have been worrying them recently. The Cen
trail Georgia has also made another loan Of 100000
with the Mutual Life Insurance Company on pledge OF
savannah and Western bonds. The Central Georgia
receives about s25OOOo in OF the amount re-
aulrcd BY the company but later on the surplus may
be used 10 meet car trust obligations
John H. Inman, president Of the Richmond Ter
minal said Yesterday that the floating debt Of the Rich
mond and Danvie, another component part OF the
Terminal system, was not embarrassing the manage
ment The debt amounts TO about S3,65o,OOo, but
Mr. Inman and his friends are carrying 1t without
difficulty The company holds about S1oooooo IN
Geo rca state bonds which gradually being applied
to quIdate the indebtedness. Mr. 1nman said; " Inc
East Tennessee floating debt is about Sl,40oOOo
This is being taken OF by General Thomas. AS
TO the East Tennessee property, 1t is controlled by
Richmond Terminal and all reports to the contrary
are nonsense / leave here Monday to attend the
annual meeting at Knoxville. on November IS, and
have the proxies on q majority OF the stock, rs an
nounced in The Tribune There IS no friction between
the Fast Tennessee and Richmond Terminal interests
The Richmond Terminal Company has no floating debt
whatever The report for the fiscal year ending
November 80 will show considerable cash In the
treasury, q large amount Of securities and. as have
already stated, no floating debt whatever MI In
man declared that large share OF credit for the sue
cessful placing Of the Central Georgia loans was due to
the efforts Of John c. Calhoun This transaction Is
expected help the credit Of the Terminal system and
enable it TO continue its financing operations with
freedom and profit.
The directors of the East Tennessee, Virginia and
Georgia Company yesterday declared dividend on
the first preferred stock Of per cent against per
cent paid in the preceding year The reduction had
been expected. the managers had determined TO
avoid any further addition to the floating debt. The
reduction will lessen the revenue OF Richmond
Terminal. which holds about 100000 Of the first
preferred stock between 5000 900 and S30OOO but
this does not worry the Terminal people. The annual
report of the East Tennessee Company shows gross
earnings Of $685. O32, a gain Of S4Ts. o73 the
fiscal year ended June 30, 1890; operating expenses.
s4.455058, an increase Of s270,o05; net earnings.
s2,3so,O44 gain of s13s,o7s The fixed charges
and taxes aggregate a. ,o7s, os3. an increase Of
s54s,7o1, leaving surplus Of s271 531, loss Of
S449,653. The dividend the first preferred stock
will reduce the net surplus TO Ri 531 Including the
operations Of the Knoxville and Ohio the Mobile and
Birmingham and the Louisville Southern. the East
EXPENSE IS, 527 .297 net earnings S28OO.643 deduct
charges and taxes, g., 400; balance, 1924 III