The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-02-15
ANEW RAILROAD DEAL.
The Terminal Leases the Macon and
Covington.

SONtAkbOns
BALTIMORE, MD., Feb. 1G--A meeting OF
the hondholders Of the Covington and
Macon Railroad Company Of Georgia, who
have deposited their bonds for the reorgan-
ization Of the company, was held here to
day. Benjamin F. Newcomer presided and
Checkley shaw was secretary. The Sea-
board and Roanoke Railroad Company
made proposition to lease the Covington
and Macon railroad on behalf of
the seaboard and Roanoke. Raleigh and
Castor and Georgia Southern and Florida
railroad companies, at a rental to yield AZ
per cent. TO the bondholders on the face
value of the Covington and Macon bonds
and past-due coupons, the lessses to take all
the rest Of the bonds to be issued
by the reorganized Coyington and Macon
Railroad Company, the issue not
TO exceed a., 100000, and TO undertake
to settle all claims against tho road and
receivers and pay all the expenses on the
bonds to be issued in gold, principal ana
interest to be guaranteed by the Seaboard
aud Roanoke, Raleigh and Gaston aud
Georgia Southern and Florida railroad
companies. This proposition was sub
mitted by Judges Watts and Gustin.
TINE RICHMOND AND pAHvILLE GETS RI
MIR. 0akman, vice-president Of the Rich
mond and Danville Railroad Company,
made precisely similar offer, with the ex-
ceptions that the bonds are to be guaran-
teed by the Richmond and Danvllle and
Georgia Central Railroad and Banking
Company. The two offers we're submitted
to vote and carried in favor
O. Of the Richmond S,i. end md 4, DanvillS, s9s @
for the Seaboard aud Roanokes
offer. Alexander Brown, who controlled
the largest number of bonds, voted in favor
Of the lease to the Richmond and DAnville.
The bonds are to run rs long as the now
charter under the reorganization OF the
railroad company. The lease Is TO be per-
petual, and the bondholders are to receive
their bonds free OF all expense
EFFECT OF THE DEAL.
MACON. GA, Feb. 14.-The lease to the
Richmond and Denville is virtually TO the
Terminal Company. It's offer was accepted
IN preference 20 the other, presumably on
the ground that it provided the best secur-
ity.
The result of this deal is already appar-
ent. 1t will give Macon 4 new railroad
and the Georgia Southern an outlet to the
northeast. Failing to ret the Covington
and Macon, which it intended TO use as an
outlet to the South Atlantic coast the Sea-
board Air Line will build a linz OF its own
to connect the Georgia, Carolina and
Northern with the Georgia Southern and
Florida.
President w. B. Sparks Of the Georgia
Southern system aud President John NJ.
Robinson OF tho Seaboard Air Line systsfn
have formed a combination, and viii joi1tly
build road from Elberton 10 Macon. Ia
Response To a telegram received from Mr..
Sparks this afternoon, Messrs. Guatin,
Query and Hall, the Georgia Southern
..p Lad
charter for new road,
NAME rriiE Nnw ROAD.
The name of tho new railroad 10 to be the
Macon and Northeastern. aud is 10 run
through the counties OF Bibb, Jones' Put
nam, Gresne, Oglsthorpe and Elbert. los
length will be about 100 miles, and IL will
run through one Of the richest agricultural
sections of Georgia. At Elberton il will
connect with the Seaboard system,
through the Georgia, Carolina aad Northern,
and at Macon with the Georgia Southern
This will give a through line from Palatka,
Fla, TO Norfolk, Va. The ino0rporators OF
the Macon and Northeastern Railroad Com
pany are John NJ. Robinson, n. @. Hoffman,
w. b. Sparks, George w. Gustin and w.
w. Collins. Work on It's construction is to
be commenced Immediately after the CHAR
ter is obtained.
THE BALTIMORE AND OHIO.
BALTIMORE, Mp., Feb, 1A-Charles F.
Mayer, president of the Baltimore and Ohio
Railroad Company returned TO Baltimore
from bis western trip to-day. In answer to
written query whether Messrs. Gould,
Iuman, Bacon or some one else had secured
or Is trying to secure an 'eptionh upon
the controlling interest of the Belti-
more and Ohio company, Mr.. Mayer
wrote back: II have not seen
the reports OF an option ON the Baltimore
and Ohio having been secured by certain
parties, but have heard Of these reports.
There is not the slightest foundation, In
fact, for any such statements es 10 the
parties named or any one else, nor is any
one else attempting TO get control Of an
option for the control of the Baltimore and
Ohio.
BRICE'S DEAL.
CHICAGO, Feb. IA. "A rumor is published
that, as q result Of Calvin s. Brices trip
over the Louisville, New Albany and Chi
cago railroad, close traffic alliancs has
been formed between it and the Rlch-
mond Terminal lines In connection
with this, it is stated that Mr.. Brice has
bought the unsold mortgage bonds of the
road, amounting to 81, e56, 900, for which he
paid 81, 500, go; that this sum IL to be used
In improving tho physical condition Of the
road, aud that It is 30 DO used as the Chi
cngo line for the East Tennessee, Virginia
.so win ,,d ~