The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-03-12
rHn MACON RAILROAD UPSET.
A Dsmper on savannahians Interested
in the Construction Company.

tractors, had applied for q receiver for the
Macon Construction Company. and had
filed liens amounting 20 1885,, 800 against the
Macon and Atlantic and Macon and Brm-
inghAm railroads, threw q damper on the
spirits Of Sevannahians interested in the
Macon aud Atlantic, and caused consider
able speculation among business men
generally.
As nothing was known in Savannah con-
| earning the application for a receiver or the
cause OF the application beyond what ap-
peared in the Macon dispatch no definite
information on the subject could be OBJ
tsined here.
The Macon Construction Company was
organized to build the Georgia Southern
and Florida railroad, with q capital OF
$500, 900. IL was so successful with the
Georgia Southern and Florida that it began
the construction of the Macon and Birming-
ham railroad, which was COMPLETED to La
Grange.
Last year the Macon and Savannah Con-
Struction Company was organized to build
the Macon aud Atlantic railroad. w. b.
Sparks of Macon il president of both the
Macon Construction Company and the Ma
con and Savannah Construction Company.
BY some 1t was believed that the controlling
stock in the Macon and Savannah Con-
struction Company was owned by the Ma
con Construction Company, which it is now
said is not the case, but that tho latter COM
pany is q minority holder of the stock, and
that the former company Is in no way liza
BILE for the failure of the Macon Construc-
ton Company, and it is believed that it will
have no difficulty In clearing itself Of the
trouble.
When it was announced that John NJ
Robinson of the Seaboard and Roanoke
system had leased the Georgia, Southern
and Florida from the Macon Construction
Company the stock Of the latter company
made wonderful advance, being reported
9: bringing four for one, and the effect of
thls confidence was also felt in strengthen
ing the Macon and Savannah Construction
Company stock. Georgia Southern and
Florida bonds also rose several points.
The report of the application for a re-
ceiver came like thunderclap from a
impossible to fix any value
upon the stock of the two
construction companies The Macon and
Savannah Construction Company's stock
did not seem to be as much affected as the
Macon Construction Company's, though
the Macon and Atlantic is included, with the
Macon and Birmingham, with the liens
which have been filed by McTighe e. Co.
John r. Young, the Savannah director of
che Macon and Atlantic, was seen yesterday
by MORNING News reporter. He said he
could give no explanation Of the action of
the contractors. 1t was surprise
TO him. He had understood that the
contract between John NJ. Robinson
and the Macon Construction Company was
completed and tlat everything was clear
sailing. Itappears now that Robinson never
signed the contract at all. This puts rather
strange face upon the announcement of
the lease which gave such a boom to the
Macon Construction Company's bonds. IL
Is said that Robinson backed out Of the
lease which he agreed to make.
"What effect will the trouble Of the
Macon Construction Company have upon
the building Of the Macon and Atlantic
rAllroadp was asked of Mr.. Young.
That is hard to say" he replied. 1.-THE
Macon and Atlantic is being built by the
Macon and Savannah Construction Com
pany, which is a separate company. 1t all
depends upon how the Macon and Savan-
nah Construction Company is affected by
this application for a receiver for the
Macon Construction Company"
"Wil it interfere with the building Of
he Macon and A tlantic railroadp
II hardly think So" replied Mr.. Young.
Too much work has already been done
upon the rood, and there would be too great
a loss to let it drop now. The greater por-
ton of the road between Bruton and Pineora
Is under construction, aud track has been
laid great part of the way. A number of
bridges have been pnt in. The work OF
building the road is more than one-half
completed, think. Tho Macon aud Attain
tic will eventually be built"
1t is said that there is about $4,000 Of
Macon and Savannah Construction Com
pany's stock held in Savannah. The Sc
curity market was visibly AFFECTED by the
news of tho lease of the Georgia Southern
and Florida falling through, and the prices
of the bonds fell rapidly TO S91S bid, 901<
asked. with no buyers, although there were
but few holders willing to part with the in
veStment at those figures, Notwithstanding
the weakness exhibited, as most of than ex-
pressed confidence in the ability Of the road
to come out the of tangle all right.
1t is claimed that the road by its last
statement showed that its earnings would
pay the interest on its bonded debt besides
paying per cent dividend to Its stock
holders, while the business Of the company
was rapidly increasing, aud as IL Was
bonded for only 81, 900 per mile, which Is
considered light. As one gentleman, who
is large holder Of the bonds as an invest
ment, expressed 10. be was disappointed that
the deal had failed, but he thought the
future Of the bonds all right, no matter
whether the construction company is shown
to be bankrupt or not, az they are first
mortgages and the property was still in
existence, ana IL MAKES no QIder-
ence who owns the road GER
tainly the bondholders have the first call to
the property, and will be taken care of.
Some place the amount of bonds held here
as high as $500, 900, while others say that
less than $500. 900 Of them remain in the
city, as, III the recent activity and rise in
the bonds, a number of them went to Balti-
more and Richmond, Va, from here 1t Is
passing strange, however, how little some
of the reputed insiders know OF the status
of the lease.
A broker received q letter from a cor
respondent in Macon shortly after the lease
was announced in which the writer stated
that he had delayed writing until he could
inform a broker here definitely in regard to
IL, and went on to say that the lease was
certainty, as he had seen the signatures of
John NJ. Robinson on the one side and W,
B. Sparks on the other. and that the terms
were substantially as published in the news
papers.
1t now appears that Robinson never put
his name TO a lease at all. The news was
like wet blanket to most securities, and
with the exception of the active demand
for Central railroad stock, which sold yes
terday for l1S19, there was little or nothing
doing. The inquiry for Central stock
brought out very little of it, although cou>
siderable could have been disposed Of il it
could have been found. From the standing
Of the buyers of the stock, some color is
given to the theory of lease. All the Sc
curities Of the Central, both bonds aud de-