The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-08-19
The Georgia Company.


The New York Herald continues the
fight it began some days ago on the Rich
mond Terminal, and the railroad system
that the Terminal controls. In its issue Of
Monday it gives an account OF an alleged
effort Of the authorities OF North Carolina
an the board of commissioners OF Gullford
county of that state to discover the status
of the Georgia company. which was formed
after a majority of the stock of the Central
Railroad and Banking Company had been
purchased by New York parties. and which
became the owner of that stock. According
to the Herdlds account the Georgia COM
pany being a North Carolina institution
the authorities of that state wanted it to
pay taxes and began a civil suit to collect
them.
It will be remembered that the Georgia
company, having as its assets the 10000
shares of Central railroad stock, issued bonds
to the amount Of 100000 and stock to
the amount of Sl2, 900, 900. The Central rail
road stock paid per cent, which was sufi-
Gent to pay per cent. on the bonds and
per cent. on the stock of the Georgia COM
pany.
The Richmond Terminal acquired control
of the Georgia company. The Herald says:
The entire capital stock of Sl2,000,000
was purchased for $4.20OO00 in October,
1888. In the following year So, 429, 900 Of
the bonds Of the Georgia company were
purchased. Since that time the stock aud
bonds of the company have played an i'm
portant part in the economy of the Rich
mond and West Point Terminal Railway
and Warehouse Company. That corpora
ton, on March /, 1889, executed mort
gage deed to secure an issue OF per cent.
twenty-five year bonds to the aggregate
amount of $A, 500, 900. Among the securi-
ties deposited as part security for the loan
was the Sl2 900, 900 of stock Of the Georgia
company, which was stated to be worth
81. 1876, 800, and was valued for the purpose
of agreement at 81, 597, 900.
OF the $24,0O0,000 worth of bonds,
s., 900 900 were at once issued and the pro-
ceeds devoted toward paying off the floating
debt of the Richmond Terminal Company.
The balance was held for various purposes,
one apportionment of 100000 being re-
served to retire the company's holdings of
80, 429, 900 worth OF the bonds OF the Georgia
company, which operated as first lien upon
the 81 200, 900 worth of stock of the Central
Railroad of Georgia. There was a provis
ion in the mortgage of the Central Trust
Company by which the class of securities
stitution of additional securities Of the mar
ket value Of $3.50 for every $1,000 with
drawn.
In February, 1889, the state authorities of
North Carolina and the county authorities
Of Guilford county of that state obtained an
order requiring the Georgia company to
show cause why its property should not be
placed on the tax list. Before the matter
came up for hearing in the superior court
the company made showing to
the effect that its stock of S12,-
100000 was not worth more than
$4,000, or 5 cents on the dollar. But it seems
that this same stock was estimated in Wall
street to be worth 81, 196,500. The taxes
and penalties against the Georgia company
amounted to S62, AS 49, But the Georgia conn.,
pany didn't pay this sum. 1t left the state,
and when the sheriff of Guilford county
searched for property upon which to levy it
found nothing. 1t is understood that the
North Carolina authorities are considering
whether or not the Richmond Terminal
Company can be held for the taxes due from
the Georgia company, since the latter
company is believed to have been merged
into the Richmond Terminal. The fore
going. if correct, shows what has become Of
the Georgia company, of which so much
was heard a year or two ago.