The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-07-05
MADE SOLE RECEIVER.
4 New Turn in Central
Railroad Affairs.
MR. CONFER IN FULL CONTROL

Speer in Macon Upon Application
of the Central Railroad and Bank
ing Compsny-Judge Adams Ex-
plains the Situation and Recounts
the Difficulties Met in Securing the
Money to Meet The July Obhsa-
tions - The Central Directors Ap-
prove Mr.. Corners Appointment
II. M Conner was appointed sole receiver
of the Central yesterday. The appointment
was made by Judge Speer upon the petition
of the Central Railroad and Banking Com
pany Of Georgia, displaoing the board OF
receivers previously appointed. This is the
latest sensation IN Central affairs, and gives
a new turn TO the situation.
The appointment was made public IN
Savannah yesterday morning at the meet
ing of the Central railroad directors
by Judge A. P. Adams, who had
Just arrived from New York. The news
was something Of a surprise to the public,
which did not quite under stand the situs-
tion. Judge Adams explained 1t fully to the
directors, and the action that had been taken
met with their approval. Mr.. Conner was
unwilling to accept the recelvership with
out their consent.
NhOhboAhI AhhOUNh TIE DhfAOLTs
The appointment of a receiver was made
necessary by the default of the Central
upon its July coupons of the tripartfte
bonds and the certificates OF Indebtedness,
to prevent the disintegration OF the system
by reason of any action that might be taken
by these and any other creditors TO secure
themselves and also the injury that might
result to the road by the levy
ing upon and attaching its rolling
No
of a receiver with full power to act, SUBJ
ject only TO the direction of the court pre-
vents this and preserves the system intact
until such time as its friends may be able
TO perfect plan for reorganization which
viii sgain place it on solid footing.
THE SITUATION EXPLAINED.
Judge Adams, who has been with Mr.
Conner in New York since their arrival
there a week ago, was seen yesterday by
MORNING NEWS reporter aud willingly
entered into statement OF the situation.
MIR. Conner was appointed receiver under
a creditors bill filed by the Central Rail-
road and Banking Company vs. the
Farmers Loan and Trust Company of New
York and the Central Trust Company of
New York, ct al.
''The main purpose OF the BILL" said
Judge Adams, was to preserve the in-
tegrity of the property and keep IL intact
for the benefit of the stockholders and all
interested until after plan of reorganiza-
tion can be perfected and put In operation
that will conserve and protect all interests,
stockholders, creditors and others.
a REORGANIZATION IN VIEW.
"The value Of the property" continued
Judge Adams, ''as is readily perceived, de-
ponds upon the preservation Of its integ-
rity, the holding of the property together
in its entirety. Creditors Of the Central in
L. 49, rnA s.,kn
the appointment OF Mr.. Conner as
receiver. declaring their confidence
in his ability and good judgment
We are all convinced that a plan
of reorganization can be agreed upon which,
II carried out, will result In placing the
property upon sound basis aud restoring
it to prosperous condition. What is
needed is the earnest cooperation OF ali In
terested and the exercise OF some patience
on the part Of the holders of its securities
FEELING OF THE NEW YORK CREDITORS.
"What is the disposition of the creditors
In New York toward the roadF' Judge
Adams was asked.
1.-THE disposition of the creditors In New
YORK seems TO be fair and kindly" he re-
piled. while they did not believe as mat
ters now stand that they were justified in
advancing all the money required, they ex-
pressed their willingness and desire to CO.
fair and equitable and to aid In the rehabil-
itation Of the property"
"Why were some Of the obligations de-
faulted upon and others paidp
CHOICE IN OBLIGATIONS.
"As we could not get the money to meet
all the obligations maturing June 80 and
July l." he said, ''it was deemed essential
that we pay the obligations due other COM
panies whose lines were being operated as q
part OF the system upon conditions of lease.
This was done TO prevent any steps being
taken toward ACKNOWLEDGMENT of the sys>
TEN. 1t might appear strange
at first thought why such
obligations as the interest upon the tripar-
tiss bonds and the certificates of indebted
ness were passed over in favor Of the South
western and other dividends, but upon CON
sideration the reason is easily seen The
tripartite bonds are fully protected and
have nothing to fear In any case. The
certificates of indebtedness or debentures
are unprotected aud stand practically upon
the same footing as the stock. In case of
ACKNOWLEDGMENT which might result from
default upon the dividends of the leased
lines the value of the property would at
once greatly depreciate and the holders of
the certificates would stand small chance of
getting anything upon their claims 1t was
for their protection that this action waa
taken"
MR.. CoMER's PERSISTENT EFFORTS.
In reference TO the efforts made TO secure
money with which to pay the July obliga-
tions. Judge Adams said:
1.-THE most strenuous and persistent
efforts were made by Mr.. Conner to obtain
the money to pay all the obligations. He
was untiring and persisted with the most
indomitable energy after repeated failures.
He did everything that it was possible for
him TO do, and mag say justly that his
fidelity and devotion to the interests Of the
company are unequaled."
"What seemed to be the chief difficulty
tn the way Of securing the money!
1.-THE financiers in New Y orK would not
advance any more money in view of the
present condition OF the Centrals affairs,
believing it would prove only temporary
relief, and that some plan of reorganization
was necessary TO place the company upon a
solid basis.n
THE PLAN OF REORGANIZATION.
Judge Adams said that the plan of reor-
RanizAtion had nos been definitely worked
out. The main idea is to reduce the
fixed charges Of the company and to secure
its operation upon q more economical plan
Just how this will be done cannot be
told yet. Whether it will involve the con-
solidation Of the lines of the system
- H. -,