The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-12-28
THE CENTRAL'S DEFAULT
NO MONEY TO MEET ITS OBLIGA-
TIoNS NEXT MONTH.

The Interest on the Port Royal and
Augusta and Ocean Steamship Bonds
the Only Items TO Be Honored-The
Management Regrets the Situation
But Cannot Help 1.-THE Reorg anizA-
ton Scheme, However, VIII Pro-
vide for the Payment of These De-
fsults-The Action of the southwest
ern Directors.
Receiver Conner said last night that the
report that the Central railway would de-
fault on its January obligations is true.
He regrets very much that such is the case,
but there is no money in the treasury with
which to pay these obligations.
The obligations due by the Central in
January are as follows:
Tripsrtite bonds S175 900
Montgomery and Eufaula R. R. bonds. Il. 900
Savannah and Western all branchesJ... 1880
Southwestern stock, guaranteed. ....... 1871. $50
Mobile and Girard R. bonds -....... 1900
Ocean Steamship Company bonds. ...... %, 2U0
Port Royal aud Augusta bonds. .....~... 1900
Observation-Disclosures SAG, 1888
OF this amount arrangements have been
made TO pay only the interest on the Port
Royal and Augusta bonds, 81. 900. and the
interest on the Ocean Steamship Companys
bonds, go, 900, amounting IN all to only
$3l 200, which, deducted from the total
amount due, leaves 1896, 1888 TO be detaulted
upon. With several other small items
counted in, the total default will be over
100000 The Augusta and Savannah div
tdend of $50, 500 was paid last month.
NO MONEY CAN BE SECURED.
Six months ago the Central defaulted
upon the interest due upon the tripRrtite
bonds, the debentures and the Savannah
and Western bonds, but money was oor-
rowed to pay the Southwestern dividend.
This, Mr.. Conner said will not be done next
month. The action Of the Southwestern
directors upon these premises is given
below.
MIR. Conner seemed to greatly regret the
situation, but said it could not be helped.
The earnings of the system have been very
light, comparatively, for the past few
months, aud while the expenses have
also been less. compared with the
previous year, the expenditures for the
necessary improvements have been large,
and the result is that there is not now sutfi-
Gent money in the treasury to pay the jan
usry obligations.
Mr.. Conner was asked IL the defaults
which will be made in January and those
made six months ago would be provided for
IN the reorganization.
Most assuredly they will,n he replied.
every indebtedness Of the Central rail
road OF every character will be provided
for in the reorganization. That is the pur-
pose OF the reorganization"
Mr.. Conner said that he does not think
the default will in any way interfere with
the reorganization, the plan Of which will be
made public next month.
THE soUTHwEsTERN's PLANS.
The officers of the South western railroad
have issued circular TO the stockholders
Rhviainay thar1 of fhn nrOha htfifv 81 n do
fault by the Central in the payment of its
obligations and Of the precautionary meas
ures which have been adopted by the South
western TO put it in a position to act with
promptness with a view to reducing as far
as possible the loss that the stockholders may
be called upon to bear in the event of a fail
ure on the part Of the lessee to comply with
the lease contract. Resolutions have
been adopted outlining the measures
of protection proposed to be inau-
Rurated il the necessity should arise.
The resolutions provide for q demand
upon the receiver of the Central for pay
rnent of the Southwestern rental if it is not
paid by JAN l, and in case Of refusal to pay
TO apply to the United States court to direct
the payments to be made.
TO APPEAL TO THE COURT.
They also provide for the employ
ment of counsel to represent the
company in matters pertaining to
the Central. and to instruct the counsel to
adopt immediately the necessary measures
TO secure the order OF the court requiring
the receiver or the Central to separate aud
divide from the funds of the Central and
other receiver funds. the total net earnings
that have accrued from the operations OK
the property of the Southwestern between
June l., 1892. and Dec l, 1892, and hold the
same for the interest of the South Westerns
stockholders.