Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-07-06
The Georgia Central.

ny lfifSlApu ~ t4i' DA'bH'NHfJ
NEg YoRv. July 5.-Mr Conner president and
chairman Of receivers. issued this morning tho
following statement 70 thu secretary and stock
holders ma creditors OF the Central Railroad
aud EBuking Company of Georgia:
Upon assuming control OF the aifairs OF your
c1mpnuy on the 29fh day OF March az receivers,
appointed ny the United States Circuit and Dis
tirt Courts OF Ge,rgia, our attention vas nfst
trperHti9cly called to tho necessity OF creating
an r-anizailon iorthe operation oi The property,
IL having previously been operated by the Rich
noud and laryille Railroad Company, under n
lease contract with the Georgia Pacihc Railroad
Company. aul the operative departments having
been merged into the corresponding depart
mcuts AZ that company 50 much time was
necessary Tor this and other matters pressing
Tor attention that 10 was not until early in June
that full statements OF the financial condition
could be prepared. These statements show That
the uxcd charges AMI interest on the largo noat-
ing debt that had been created wore consider
ably iu cXccss 0f the average net earnings Tor the
three years preceding June l, 1891, when the
lease 10 tho Georgia Pacific was made. Under
the order of court over etOO,OOO were PAID 70
employ ees for seryiccs rendered during opera
fiou rv tho Richmond and DanYlle Company
This depleted the treasury Of the company, and
tho light traffic of the spring months coming on
wa were unable 90 accumulate the funds neces-
sary to meet tho nxcd charges mnturing the
first Instant. Statements Of the financial
condition of the company Wer0 sub
Initted TO friends who were anxious 10 render
assistance, but owing 10 the fact that the earn
lfls, az fnlNlls Wien hnt lihiAN Mh' f'i Alui
now wero insufficient 90 meet the interest and
rentals they reluctantly declined 10 more than
lend q tullCcnt amount 10 pay the Obliga-
uons upon the auxiliary SYSTEM THIS
VAS done 20 prevent dislntegratiOn, be-
neyiue mat much OF present ana future values
depends pom holding the property together
uni some iair and equitable plan of reOrganlza-
ton can he perfected. While tins Is beng con
siiered | beg o. assure you that, having The &C.
operation OF many of the largest creditors aud
oclrity-hOldCrs Of the company, the present
status Of tho different classes OF securities a.
they relate 10 each other viii be preserved, the
property economically operated, and every
effort made 10 avoid unnecessary expense and
consequent waste.
"A. soon as practicable fun report OF the
condition Of mo company will be submitted,
which Will enable you TO intellgenily consider
the interests OF yourselves and company.
lSignedl ,o,-,-hl II; u, ". a CohkE, ~
ACTION or CREDITORS.
NEW YORK, July 5.--At meeting OF the
Heorga Central syndicate to-day al advisory
committee, consisting Of Z. T. Fairchild, Feed.
T.. Oicott, and Walter Luttgen, OF August Bel
mont n Co. we're appointed 10 consult with
Spoyer & co. on further steps 10 be taken Tor The
projection Of their interests. The loan OF
~ IOO, 600 made by the syndicate TO the Georgia
Central Company became due 10y the detanlt
made by the company on itS bonds on friday
last, but al present 1t is not the Intention OF the
synaicate 10 proceed 10 harsh measures.
The company, however. according 10 Receiver
Conner, Ia not now earning interest on It's bonded
and floating debt, ANA IL Is stated that scaling
down Of fixed charges II imperative. None oil
the net earnings have been used TO pay any part
of the fioating debt but the contrary the noat-
ing debt VAS increased on July Let, IL being
necessary 20 borrow money 10 pay the coupons
ON leased llucs. The total floating debt amounts
10 $4,000, 600, and on January lst provision
must also be- made for the payment OF so,OOO,-
600 tripartite bonds. Members of the syndicate
state tdat under the circumstances some action
must be taken at once, and u Is stated that re-
organization OF the property will soon DO pro