The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-03-25
THE sPEYER LOAN.

THE SPEYER LOAN.
The Speyer loan contract which is submit
ted in evidence, is for the first time given to
the public, and will be interesting reading
for business men and all concerned in Cen
trail railroad affairs
1t is dated New York, Nov. IL, 1891, and
states that in the beginning that the railroad
company has over and above its bonded
debt, lease obligations and guarantees, an
indebtedness Of about "a, 199, 1875 80 repre-
sented by loans to ii from corporations and
persons and secured by collateral to several
times that amount. A list of the
amounts and collateral 10 given. There are
thirty-six items in the list, of which two
are fpr $1,000 zach. one for 1920. 900, two
for $3.50, 900 each, three for 1900, 900 each,
one for STAT, 151, ten for Sl00,000 each, one
for $685. 300. two for $75.000 each, two for
$50 900 each and the remainder from s., 900
to Sal 900 each. OF these there were matur-
ing obliga tions to the amount of $704,-
243 SO, divided into seventy-two
items. They appear TO be chiefly
for rolling stock and material,
a number of the amounts being notes due
the Baldwin Locomotive Company, as is
seen from indices in pencil on the bill. The
copy of the contract was secured from the
Central Railroad and Banking Company.
it seems that the Central afterward decided
that it needed 81, 400 900, as Speyer 81 Co.
agree to furnish S3, 700, 900, and it is agreed
that 100000 was arranged for otherwise.
THE AGREEMENT.
The agreement is as follows:
l. The syndicate agree to lend the %, zoe, 900
and agree to deposit it with Speyer & Co. in
New York.
@ The railroad company is to repay on
November. 1892 in gold coin of the United
States the loan OF $3,7o0,000 with inter
est in gold at the rate Of per cent. payable
May and Nov /, and on the maturity or the
loan pay commission TO the syndicate of 2l6
per cent, also payable in gold.
g. The repayment Of the loan and thepay-
to be secured by the deposit with Speyer & Co.,
OF consolidated first mortgage gold bonds. ex
coupons Of Oct. ], bearing interest at 5 per
cent. secured by the consolidated first mort
gage Of the railroad company to the Central
Trust Company, dated April, 1890, the bonds TO
be deposited at the rate OF 81 for every dollar
OF the loan, interest aud commission,
4. The syndicate Is to have the right or option
OF buying from the railroad company all or any
part Of the $4,000. coo OF consolidated bonds de
posted at the price OF 70 and accrued Interest,
such right or option 70 be exercised Ia writing
from time TO time or on or before Sept. II, i692,
the amount Of all sales 80 made 20 be credited
as so much paid on account OF the loan.
B. The syndicate Is given the option at any
time on or before Sept. II 70 extend all or any
part Of the loan made by IL At per cent. and q
commission Of hVe-sixths of per cent. for the
period " four months from Nov. /, 1892 and ia
cass the loan ls extended in whole or IN part the
option Is given 70 the syndicate 10 buy tho
bJuds at 80 aud the interest Il also 70 be eE-
tended four months 70 Jan. II, 1898, such eK-
tended right and option 70 apply 70 Eli Of said
B.0l0.0V0 bonds IN case the whole loan Is ex-
tended or IN proportion as the loan Is extended
9. The railroad ccGpanY il also 10 pay speyer
co. Individually aad for their personal ac-