The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-07-08
TO ISSUE NEW BONDS.
THE SCHEME OF THE CENTRAL'S
ORGANIZATION

All the Bonds to be Consolidated and
Covered With a Blanket Mortgage.
a Reduction in Interest the Object.
President Conner Assured of the Sue
cess OF the Plen-The Reorganization
IN the Hands of Capable Men.
The Central railroad will probably be
reorganized. all the lines OF the system
being consolidated and a general blanket
mortgage. bearing low rate Of interest
issued TO take up all the present outstanding
obligations 50 President Conner stated TO
the MORNING NEWS yesterday.
President Conner has Just returned from
New York after an absence of nearly two
weeks in the Central's interests, during which
time he did some of the hardest work OF his
life, both physically and mentally. He
showed his fatigue somewhat but received
all who called upon him very pleasantly.
Several of the directors called and dis
cussed the situation informally, but there
was ne regular meeting.
THE CENTRAL's PROSPECTS.
When asked as TO the situation, MIR.
Conner said the CentraPs prospects are as
bright as could be expected under the cir
cumstances. Its friends in New York have
within reason for it, With regard to the
reorganization, Mr.. Conner said O general
plan was prepared while he was in New
York for the reorganization Of the
system, the details Of which have
not been completed as yet, how
ever. In view of this he was not at
liberty TO discuss the plan. IL is being pre-
pared, be said, by good men. He is not at
liberty, however, to state their names at
present. Beyond a general idea Of the plan
no information as TO its details will be
given, even TO those most largely Interested,
until the plan is ready to be given TO the pub
lie. This is necessary to prevent spscula-
tion, as advance information as to the de-
tails might prove very valuable to speou-
lators
A GENERAL CONSOLIDATION.
Mr.. Conner was asked II the plan oontem-
plates the consolidation Of all the lines Of
the system, placing them all upon the same
basis according to value. He replied thatit
does. The Central railroad, Augusta and
Savannah, Montgomery and Eufaula,
Southwestern and other separate oorpor
tions will be one after the reorganization,
bearing the same name and under the same
management. This in itself will greatly
reduce the fixed charges Of the system.
To meet the outstanding obligations OF
all kinds Mr.. Conner said it ia proposed to
issue a new set of low interest bonds secured
by blanket mortgage covering the whole
system. These bonds will be exchanged for
the present outstanding securities in the
shape Of bonds and other Indebtedness, IN
GLIDING the floating debt
IT'S SUCCESS ASS URED.
''What are the prospects for the success
of the reorganization" MIR. Conner was
asked.
sit will certainly succeed" hs replied.
!" It is undertaken by Speyer & Co, assisted
by syndicate of leading capitalists, who
will guarantee the reorganization. II there
are any who do not wish to exchange their
securities for those offered them the syndi-
cate will buy the securities direct at their
proper value. The syndicate will be backed
by ample capital and will be able to fulfill
all it undertake."
lyon consider the success of the plan as.
sured, thsn?"
''If undertaken, do. It is only neces-
sary for the stock and security holders to
have little patience and give the com
mittee in charge their confidence and sup
port | shall advise all who consult me not
60 sell anything, stocks, bonds or any secu-
rites they may have, but to hold them
and await the plan that will be prerared by
the committee. II they sell nos they sell
at sacrifice, while il they await the nego-
tiation they will be able 20 obtain something
like The value OF their holdings"
Mr.. Conner was asked if any fixed charges
except those of the leased lines will be paid
pending the reorganization. He replied
that 1t Is impossible to say now what will be-
done.
THE REORGANIZATION COMMITTEE
The reorganization committee, Mr.. CO.
mer said will be composed of good men not
simply because of the amount Of capital
they CONTROL but because OF their integrity
and high standing, morally as we'll as finnn-
cially. They will be men, he said, who will
not stoop to take au unfair advantage be-
cause of the crippled condition of the
sysem which they are called upon TO assist
MIR. Conner sad that sentiment generally
is very favorable toward the Central In
New York now, much more so than 1t has
been for some time owing 30 the many false
reports circulated by its opponents with in
tent to injure it in the financial world Mr..
Conner was asked il he thought his article
upon the Central railroad situation in the
Financial Chronicle had had this effect.
He said the unfavorable impression made
against the Central was already
losing groundHwhen he arrived in
New York and he hardly thought 1t needed
this last blow. A lIttls time, he thought,
would suffice to place matters In ther true
light. The truth is already being seen.
He did not write the article of his own no.
tion, but by request of friends in New
York, who thought statement OF this
kind, coming from the president OF the
Central, would have good effect
The headquarters of the Ocean Steamship
Company will be brought to Savannah as
soon as possible.