The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-07-06
CENTRAL TO BE SAVED.
A STRONG COMMITTEE TO LOOK
AFTER ITS INTERESTS.


C. g. Fsirchild, Fred P. Olcott and Wal
Ger Luttgen It's Misunderstanding
pown'of the Fixets Charges Declared
imperative by Receiver Oomer-An
Address to the Security Holders.
NEw York, July 5.-H. NJ. Conner, pres
Idont and chairman of the receivers, issued
This morning the following statement to
the security and stockholders and creditors
of the Central Railroad and Banking Com
pany of Georgia:
IJpon assuming the administration OF the af'
fairs OF your company on The 18th day Of March
as receiver, appointed by the United states
circuit and district courts for Georgia, our at
tention was first imperatively called TO the ne
cessity of creating an organization for operat-
ing the property, it having previously been
oDerated by the Richmond and Danville Rail-
way Company under a lease contract with the
Georgia Pacific Railway Company, and its
operating departments having been merged
into the corresponding departments OF that
company. So much time was necessary for
this and other matters pressing for attention
thatit was not until early in June that full
statements Of the financial condition could be
prepared. These statements show that the
fixed charges and interest on the large float
ing debt that had been created we're consider
ably In excess of the average net earnings for
the three years preceding June lst, 1891, when
the lease to the Georgia Pacific was made.
Under the order of the court over 5000 900 were
paid to employees for services rendered
during the operation by the Rich
mond and Danville company. This depleted
the treasury Of the company aud the light
traffic of the spring months coming on we were
unable to accumulate the funds necessary to
meet the fixed charges maturing on the lst
inst. Statements ofthe financial condition OF
the company were submitted to friends who
were anxious to render assistance, but owing to
the fact that the earnings as shown when the
traffic was larger than now were insufficient to
meet the interest and rentals they reuct-
antly declined to more than lend sufficient
amount to pay the obligations upon the auxtli-
ary system. This was done to prevent disinteR
ration, believing that mucl OF the present and
future values depended upon holding
the property together until some
fair and equitable plan Of reorganization
can be perfected. While this is being
considered beg to assure you that having the
cooperation of many of the largest creditors
and security holders of the company the present
status of the different classes Of the securities
as they relate to each other will be preserved
the property economically operated and every
effort made to avoid unnecessary expense and
consequent waste. AS soon as practicable full
report of the condition of the company will be
submitted, which will enable you to intelIigently
consider the interests of yourself and the com
r pany. H. NJ CoMER,
President and Chairman of the Receivers.
AN ADVISORY COMMITTEE FORMED.
At meeting of the Georgia Central syn
dicate to-day an advisory committee, con-
sisting of c. s. Fsirchild, Fred p. Olcott
and W alter Luttgen of August Belmont &
Co., was appointed to confer with Speyer
& Co. on the further steps to be taken for
the protection of their interests. The loan
Of s. ZOO, 900 made by the syndicate to the
Georgia Central company became due by
the default made by the company on its
bonds on Friday last, but at present it Is not
the intention of the syndicate to proceed to
harsh measures. The company, however.
according to Receiver Conner, is not now
earning the interest on Its bonded and
floating debt, aud it is stated that scaling
down of the fixed charges is imperative
None OF the net earnings have been used to
pay any part of the floating debt, but, on
the contrary, the floating debt was increased
July l, it being necessary to borrow money
to pay the coupons on leased lines. The
total floating debt amounts to $5,000,000,
and on Jan. l provision must be made for
the payment of S. 900, 900 tripartite bonds
Members Of the syndicate state that under
the circumstances some action must be
taken at once, and it is stated that reor-
ganization Of the property will soon be pro-
nORed