The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-07-01
THE CENTRAL'S DEFAULT.
RuMORS OF REORGANIz ALTON
ABLOAr IN NEW YORK.

rbs Default VIII Probably Be Only
psrttal-The Road Intrinsically GOOD
But the Fixed Charges Entirely TOO
Hish-The Danville and It's Interest
Payments.
NEW YORK, June 3o.-The Post this
avening SAYS: "It was learned upon the
best authority to-day that the Central Rail
road and Banking Company OF Georgia,
commonly called the Georgia Central rail-
road. will tomorrow default on the pay
ment of the interest due on its bonds
About $500, 900 will be due tomorrow and
,he company neither has nor has been able
10 borrow this amount. 1t Is said, on the
.ame authority, that the default will prob
ably not be total but only partial; but IL
oouId not be learned upon what bonds de-
fault would occur, or what proportion
of the interest due would remain un-
raid. 1t was also stated that in the
almost certain event Of default complete
reorganization of the company would be-
come necessary and would in all likelihood
be carried out. At the same time, II was
said, no steps had actually been taken or
prepared with that end In view. Ii was
further said that in the event OF reorganiza-
ton there was no reason to suppose that the
present receiver, Mr.. Conner, would be
ousted from his position. 1t was believed
that large majority Of the creditors were
satisfied with him personally and were
friendly to him.
THE ROADS DEBT.
"The indebtedness of the Georgia Central
Is chiefly represented by 81, 999, 900 of per
cent. bonds, called tripartiSe bonds, and
81 100000 of 6 per cent. certificates OF debt.
1t is said that the property is tntr4nsically
good, and merely needs TO be managed on a
different basis from that of the Richmond
Terminal contract, under which IL has far
too long been. Specifically, it is declared
that the fixed charges of the road are en-
tirely too high. 1t is also understood that
the interest is to be passed on the 50, 700, ,OOO
loan made 10 the road by a syndicate repre-
Sented by Speyer & Co. of this city. The
syndicate is secured by 81, 500, 600 of bonds.
The representatives of this syndicate are in
dicated as the persons interested in the pro-
posed reorganization, which will be forced
by the announcement Of the default"
THE DANvILLE's PAYMENTS.
The Post also quotes Mr.. Huidekoper, re-
ceiver of thu Richmond and Danville Rail
road Company, as saying: 1--WE shall begin
paying the July coupons tomorrow on the
bonds of the leased roads, and shall prob
I ably pay the coupons on the bonds as fast
as they are presented Some of them are
not payable in New York and they do not
usually come In all at once. We presume
that all will be paid, however, in the next
three or four days. An exception ha;
been made OF the Richmond end
Danville 6s. Some other arrangement
may possibly be made with reference to thest
coupons, but at the moment there Is no pro
vision for their payment. This discrini
nation is made because the court regards II
as important to keep the system intact. snc
II we did not pay the leased line obligations
there would be movements on the part o.
the bondholders to get control Of these lines
which might result in breaking up thu
system. 1t is considered for the interest o.
tue first mortgage bondholders to have th'
system kept together even at the cost of |
little delay in interest. There Is no doub
about the security of the Richmond anC
Danville 6s. The bondholders will ge
every cent Of interest due them"
CLYDE's KICK.
An effort is being made toadjus
\ the differences between the Danvill'
! bondholders represented by w. P. Clyd,
4 ard the First National Bank party. Tn
n last named interest is said to be yer,
strongly in favor of having the reorgani "a
tion proceeded with by Drexel, Morgan
20. Mr.. Clyde, however, is very bitter in
his talk against Drexel, Morgan & Co
h and 80 is John c. Maben, but it is though
pressure will be brought against them to in
duce them TO recede from their position
Ihereceivers of the Danville company hav
. sold Sl,00O,000 receivers certificates to
/ d. syndicate, and W. P. Clyde and George
Stone have announced that they are will
Ing to buy the coupons on the DanviIl
company which are due tomorrow, bu
which will be defaulted on.