The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-07-02
CENTRAL'S LOST CREDIT.
COUPONS AND DEBENTURE DUES
NOT PAID IN GOTHAM.

NSA ~ AAN OOA LAD1s
Memphis and Charleston and Mobile
and Birmingham Coupons Also Dis
honored-A Strong Effort 20 Be
Made to Induce Drexsl, Morgan s.
Co. to Take Hold of the Terminal.
New YORK, July The long standing
irreproaohable credit of the stalwart old
Georgia Central went by the board to-day,
and to-night that famous corporation is in
default on her most solemn obligations.
The State Trust Company Of this city, the
Centrals recognized fiscal agent here, an
nounced formally that there were no funds
in hand to pay the interest on either the
Central tripartite bonds or the certificates
OF indebtedness. This is the beginning and
the end Of the sad story. Mr.. Conner and
Judge Adams have been here several days
and have worked like beavers to make the
necessary financial arrangements to meet
the Centrars approaching obligations. but
owing to the legal entanglement into which
the CenIa las been dragged all efforts TO
protect her credit have proved futile.
The Memphis and Charleston and also the
Mobile and Birmingham roads likewise de-
faulted to-day.
ment OF the various southern railroads is
bound to go on from bad to worse dd
infnitttn unless some mighty plan of res
cue be quickly devised. To this end there
is quiet but powerful movement now crys-
tallizing, which contemplates radical meas
ures, II necessary, to induce con-
cert of action among the Richmond
Terminal securit6 holders to turn that oor-
poration bodily over to Drexel, Morgan 81
Co. for reorganization. The great banking
house will probably revoke their recent
declination and undertake the stupendous
work IL pronounced majority of the inter-
ests involved urge them to do So The i'm
preston is gaining strength every hour
that this will come about next week.
M.J.v.
WHAT THE EVENING POST SAYS,
NEW YORK. July 1.-The Memphis and
Charleston railroad defaulted on its interest
to-day and coupons were bought at par by
the Gallatin Bank for Adrian Iselin and
others. The officers of the company say it
has neither cash nor collateral with which to
provide for the interest.
The Georgia Central interest was also de-
faulted on, and so was the interest on the
Mobile and Birmingham bonds, part Of the
East Tennessee system.
Steps are being taken by the security
holders TO induce Drexel, Morgan & Co. TO
reconsider their decision not TO undertake
the reorganization of the Terminal COM
pany.
The Post. referring to the affairs of the
Georgia Central railroad, says to-day:
Tho Georgia Central road, y hich was
placed in a receivers hands some time ago,
defaulted in interest on its 'tripartItei
bonds and Georgia Banking Company cer-
tincates of indebtedness amounting in all
to $3l2, 900, as foretold yesterday. ~
Regarding East Tennessee matters the
. -
coupons wero paid on presentation at the
Chase National Bank. Certain coupons OF
the Mobile and Birmingham, which Is part
of the East Tennessee system, were not
paid"
THE MEMPHIS AND CHARLESTON.
Coupons of the Memphis and Charleston
we're also not paid, but the holders OF them
got the money for the on presentation at
the Gallatin National Bank Mr.. Tappen.
president of the bank explained that the
bank was not paying the coupons but was
buying them for third party The person
buying the coupons will be entitled to per
cent. interest on them from to-day, aud, Of
coul Sc, they are held as first lien on the
road. The Memphis and Charleston is also
part Of the East Tennessee system.
Capt. Thomas, when asked for the
cause for default on these two
coupons. said: "It is a very simple matter,
They are not East Tenn ssee railroad bonds,
and the companies have not the money to
pay the coupons The East Tennessee has
always advanced money TO do so, and it
could do so now but for the fact that the
receiver has no power. think the matter
will be fixed up In few days. The East
Tennessee has more than $3.50 600 in bank in
this city over and above its own interest re-
quirements, which is turned over to the re-
ceiver along with everything else. AS soon
as IL can be arranged, these coupons will,
no doubt, be paid"
TERMINALS WISHES.
The Post this evening says: "A move
ment is on foot among the various Rich
mond Terminal security holders to have a
meeting called for the purpose of consider
ing some steps by which Drexel, Morgan &S
Co. may be induced to reconsider their re-
fusal to undertake the reorganization Of the
property. Spencer, Trask a. Co., who first
moved Ia the matter Of having the reorgan-
ization placed in the hands Of Drexel, Nor
gan u Co., have been asked to call a meet
ing Of the signers of the petition then circu-
lated by them, but they have not as
yet acted on the request. The security
holders who are represented in the
committee of fifteen say that they disap4
prove of w. H. Clyde's action in placing an
obstacle in the way of reorganization by
Drexel, Morgan Il Co.. and 1t is understood
that several members will withdraw from
the committee at the meeting Wednesday.
One OF the members referred to said this
afternoon: Probably nothing will be done
until after the meeting Wednesday, but you
may take 1t for granted that some decisive
action will be taken next week. IL is UNDER
stood that Mr.. Clyde's personal holdings OF
Richmond Terminal securities are very
small but be seems to be determined to
control the reorganization II peesible,'"