The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-12-03

to the preferred stock, then issued came
OIL. !" and the stock sold at S54 in the follow
ing month. The December money panic
OF 1857 came, the whole market toppled
over OF its own weight and Terminal shares
teil TO sou. Here was speculation with a
vengeancel
EAST TENNESSEE TAKEN IN.
In the January following QsS0 the Ter
minal company added the East Tennessee
system TO Its mtleages, control being OBJ
talned by purchase OF $4,000, 600 of the first
preferred stock at par from Messrs. Brice
and Thomas and associates, who had
marked up their price by dickering with
tue Norfolk and Western company, which
also desired the East Tennessee lines. In
the spring of 1888 President Sully resigned.
de and his friends were dissatisfied with the
policy and methods of the directors (Hs
mao, by Che way, been trying 70 secure con-
troll OF the Baltimore and Ohio, and at one
time had held an option on the controlling
INTEREST," His friends, represented by
Emanuel T.I1I Lehman, Fl: d. Hollins,
William Libby, l. L. Rice and others,
charged the directors with peculiar methods
and tried to turn them out A
contest for control Of the stock followed,
but the "insn were victorious and
John H. Inman was elected president May
81, 1855, and held that office until the
troubles OF last winter eliminated and he
bhSPp5h AOHu anu OuU u llldh6 TOOLu lOE
the present incumbent, Mr.. Oakman.
THE GEORGIA COMPANY "DEAL."
A few months after Mr.. Inman's election,
in October, 1888, occurred the Georgia COM
pany deal, which is the ground Of the
threatened suit against Messrs. Lehman,
Hollins and associates. Some two years
previous to this date these gentlemen ac-
quired possession of some s., 00O, 900 stock
OF the Central Railroad and Bank
ing Company of Georgia. AS the
whole issue was s7,5OO,OOO this
gave them absolute control. They
then organized 1.-THE Georgia Company"
with capital of SIG, 5000, 900, OF which $12,-
OO0, COO was issued. The sole asset of this
company was the block OF S4,000,000 Geor-
gia Central stock referred to and S40O, 600
cash paid in. Against these assets they also
issued and sold "a, 600, 600 Of collateral trust
bonds. Ii was this $12,000,O0O OF stock
which was sold to the Terminal company
In 1888 at $35 per share, but 10, was ex-
planned that cash in the Georgia Central
treasury reduced the actual cost to about
S3l per share.
The flnanoierinQ for the acquisition of this
property was apparently the last straw
that broke the camel's back. The Terminal
company was getting into bad shape. Times
we're not propitious for floating new secur-
tiles, and the altogether unprecedented
amount the company had outstanding
frightened investors, In August, 1891, the
Herald demonstrated from the oompany's
own reports that it was bankrupt. The
officials made frenzied general denials, but
could not refute the fact, and this was the
beginning Of the end The futile efforts of
the z. p. Olcott committee last spring to
reorganize the system on the basis of e new
capital Of $500. 900, 900 and the appointment
Of receivers for all the property is still fresh
in the minds Of readers.
WORKING AT THE PROBLEM.
In view of the latest complications in the
Georgia Central case it will be interesting
to watch the work Of the Georgia Central
directors who are now in town vainly en-
deavoriug TO hit upon some scheme for re-
organizing the property, or rehabilitating
its credit, as one Of the directors put 1t.
They have got a finance committee to
help them out, made up largely OF the
gentlemen who got the company into the
mire This committee made report yester-
day, but it was not very favorable. They
have made up their minds that a pile Of
money has got to be raised somehow, which
ever way they look at It, There was talk
of per cent. blanket mortgage, such as
Speyer 81 Co. suggested. 1t was agreed
that the fundamental thing was to cut down
fixed charges and reduce operating expenses
to the lowest limit. The assessment plan
was proposed, but it did not meet with
much favor. The directors evidently do
not see daylight yet.