Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-07-02
RAILWAYS DEFAULT.
VARIOUS SOUTHERN LINES FAIL TO
PAY INTEREST.
and Mobile and Birmingham Roads the
Richmond Terminal.
TBy telegraph TO the D.spatch.l


NEW YORK, July 1.-The Memphis and
Charleston defaulted on its interest to-
day and the coupons were bought at par
by the Gallatin Bank for Adrian Iselin and
others. The officers of tho company say
il has neither cash nor collateral with
which TO provide for the interest.
The Georgia Central interest was also
defaulted on, and so was the interest on
the bonds of the Mobile and Birmingham
road. part of the East Tennessee system.
Steps are being taken By security-hold-
ers TO induce Drexel. Morgan x Co. TO re-
consider their decision not 10 undertake.
the reorganization OF the Terminal Com
fany.
THE MATTER IN GREATER DETAIL.
The Pos, referring TO the affairs of tho
Georgia Central railroad. says to-day I:
The Georgia Central railroad. which was
| placed in a reciver's hands some time ago,
defsulted in the interest on It's tri-
| partite bonds and the banking company
| certificates of Indebtedness, amounting in
ali to 1912. 900. as foretold yesterday
| Regarding the East Tennessee inatters
the Post remarks; "All the East Tennessee
| coupons were paid on presentation at the
| Chase National Bank. Certain coupons OF
1
| part of the East Tennessee system. were
| not paid. The coupons of the Memphis
and Charleston bonds were also not paid,
| but holders of them got the money for
| them on presentation at the Gallatin Ne
| tional Bank. Mr.. Tappen. the pfesi dent
| of the bank, explained that the bank was
| not paying the coupons. but was buying
them for third party. The person buying
the coupons will be entitled TO Q per cent.
| interest on them from to- day, and of course
| they are held "a first hen on the road. lne
Memphis and Charleston is also part Of
| tho East Tennessee system.
WHAT GENERAL THOMAS SAYS.
General Thomas. when asked for tho
| cause Cor the default on these two series
| Of coupons, said IL IS q very simple mat
| ter They are not East Tennessee railroad
bonds and the companies have not the
money TO pay the coupons. The East Ten
nessee has always advanced the money TO
| do so, and it could do so now but for the
| fact that the receiver has no power. |
think the M tier will be fixed up III few
days. The East Tennessee has more than
| $3.50, 900 in bank in this city over and above
it's own interest requirements, which u
turned over to the receiver along with
everything else. AS soon a. il can be- ar
ranged these coupons Will no doubt be
PAID"
RICHMOND TERMINAL.
The Posi- this evening says: "A move
ment is on foot among the holders of the
various Richmond Terminal securities to
have meeting called for the purpose OF
considering some steps by which Drexel,
Morgan q Co. may be induced 10 recon
slider their refusal to undertake the reOr-
ganization of the property. Spencer,
| Irask d Co.. VINO first moved in the mat
| ter Of having the reorganization placed in
| tho hands Of Drexel. Morgan Il Co., have
| been asked TO call meeting of the signers
| TO the petition then circulated by them,
| but they have not as yet acted on the re-
quest"
Security-holders who are represented
| in the Committee Of Fifteen say that they
disapprove of ". p. Ciyde's action in
placing an obstable in the way OF reOr-
| ganization by Drexel. Morgan Il Co., and
| 1t is understood that several members will
withdraw from the committee at the meet
| ing on Wednesday. Ono of the members
referred 10 SAID afternoon Probably
| nothing will be done until after the meot-
| ing Wednesday. but you may take II for
granted that some decisive action will be
/ taken next week. IL is understood that
| alr. Cly de's personal holdings OF Rich
| mond Terminal securities are very small,
| but he seems to be- determined 10 control
| the organization il possible"