The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-05-11
The oentrars Locxed-up Shares.

The Central6 LocHed-up Shores'
| 1t looks as il the people who control the
Richmond Terminal are not yet satisfied
with what they have got out Of the Central
Railroad and Banking Company. In the
bill which the Central Trust Company, OF
New York. has filed, asking for permission
70 vote the AZ, 900 shares Of Centraps stock
deposited with it as security for bonds, 1t is
admitted that the Richmond Terminal has
only trifling interest in the shares. and it
turns over to the trust company even that
interest 1t does that with the hope that the
way will be made clear for voting the shares
at the special election on May 10. The trust
company claims to represent the bondhold-
ers, and thinks it ought TO be permitted to
control the Central in the interest OF those
bondholders.
But how much difference is there, so far
as the Central railroad is concerned, be~
tween the Richmond Terminal and the
trust compsnyl Mr.. Olcott, the president
Of the trust company, is the chairman OF
the Richmond Terminal reorganization
committee, and 1t Is fair to assume that If
the trust company is permitted TO vote
the shares it will name board dictated
by the Richmond Terminal. Nothing would
be gained, therefore, In the direction Of
protecting the Centrars property, by the
election Of a new board of directors. The
Central would be back in the hands Of the
Richmond Terminal, a concern that is. &C
cording to letter Of its president, pretty
nearly on its last legs. 1t would be an I'M
fortunate thing for the Central to get into
ba ~ that The
perience it has already had with it is SUI
ficient.
When the Central passed into the control
Of the Terminal that company promised
great things for the Central and Savannah.
How was the promise keptl Was Savannah
benefited in the Ieasti Was the Central
benefltedl When the Central was carried
to Wall street 1t had a splendid credit. 1t
could float bond bearing low rate Of
interest at almost par. For q considerable
time before the Central was put into the
hands Of receivers It's credit was absolutely
gone Its bonded debt had been increased
and an immense floating debt incurred.
And the Central was placed in'this unto TT
innate situation by mon who were going to
do SO much for it and Savannah.
The Central railroad has some valuable
securities yet. Among them is the stock
of tie New England and Savannah Steam
ship Company, now held in escrow by the
Central Trust Company. If the Richmond
Terminal should get control of the Central
on May 16 the chances are that litige-
ton between the Central and Richmond
Danville would cease, and the Central
would be forced TO pay the immense claim
the Richmond and Danville has made
against It. And perhaps the steamship
company stock would be used to raise
money Co pay the claim.
The Central Trust Company says it wants
TO vote the shares Of the Central which it
holds in order to protect the owners of the
bonds for which the shares are security.
The best protection those bondholders can
have is a board of directors who will man
age the Central 80 that its shares will be
worth something. If the minority stock
holders are not prevented they will elect
such a board. But il the way is opened for
the Richmond Terminal to elect the board
those bondholders will have reason to be
anxious.