The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1892-07-01
RAILROAD TO BE nEonoAs1zED.
The Georgia Central In had Shape Finan-
cially.

cially.
NEW YORK, June 3O.-ISpeciall- Tho
Post this evening says that it was
learned upon the best authority to-day
that the Central Railroad and Banking
Company OF Georgia, commonly called
the Georgia Central railroad, will to-
morrow default on the payment OF tho
interest due on it's bonds. About $780,
600 will be due tomorrow and the COM
pany neither has nor has been able to
borrow this amount. 1t is said on tho
same authority that tho default will
probably not be total, but only par
tial; but it could not be learned upon
what bonds default would occur, or
what proportion OF interest duo would
remain unpaid.
1t was also stated that in the almost
certain event Of default complete re-
organization of the company would be
necessary and would, in all likelihood,
be carried out. at the same timo, it
was said, no steps had actually been
taken or prepared with that end in
Wow. 1t was further said that in tho
event OF "a reorganization there was no
reason to suppose that the present re-
coiver. Mr.. Conner, would be ousted
from his position. 1t was believed that
a large majority of the creditors were
satisfied with him personally, and were
friendly to him.
The Indebtedness OF the Georgia Cen
trail is chiefly represented by ST 800, 900
Of per cont. bonds, called tripar-
tito bonds. and 81, 100000 of per cent.
certificates Of debt 1t is said that the
property is intrinsically good and
merely net DIS to be managed on differ
ent basis from that OF the Richmond
Terminal control, under which it has
for too long been. Specifically, it is de-
clared, the fixed charges OF the road
are entirely too high. 1t is also under
stood that the interest is to be passed
on a SO, 700, 600 loan made to the road by
syndicate represented by Speyor S
Co., of this city.
The syndicate is secured by 81 $780,
600 OF bonds. Representatives Of this
syndicate are indicated as persons in
terested in the proposed reorganization
which will be forced by tho announce
ment of tho default. Tho Post also
quotes Mr.. Huidekoper, receiver OF tho
Richmend and Danville Railroad Com
pany, as saying: I'VE shall begin pay
ing July coupons tomorrow on the
bonds of leased roads and shall prob
ably pay the coupons as fast as they
are presented. Some of them are not
payable in New York and they do not
usually come In all at once. We pre-
sumo that all will be paid, however, in
the next three or four days.
IAN exception has been made of tho
Richmond and Danville SKIES. Some
other arrangement may possibly be
made with reference to these coupons,
but at the moment there is no provision
for their payment. This discrimina ton
is made because the court regards it as
important to keep the system intact,
and IL we did not pay the leased line
obligations, there would BIO movements
on the part Of the bondholders to get
control of these lines, which might re.
suit in breaking up the system. 1t is
consid cred for the interest of the first
mortgage bondholders to have the sys-
tenn kept together even at cost of a
little delay in the interest. There is
no doubt about the security of tho Rich
mond and Danville skies. The bond
holders will get every cent Of interest
due them.