New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-07-06
RAILROAD INTERESTS.
CONFERENCE on THE GEORGIA CENTRAL

| CONFERENCE ON THE GEORGIA CENTRAL
A VOTE TO CREATE AN ADVISORY COMMITTEE
Tho representatives of the banking syndicate "mch
| foated the loan Of the Central raiirohu anu
Banking Company Of Georgia last summer cohIerrcu
Yesterday with regard 70 the best measures TO pursue
In view Of the receivcrship and the DEFAULT III July
Interest 1t Is understood that the oan ny us ,erno'
| became due In consequence OF the d'fahi" H. l.
Conner receiver OF the Georgia Central, was present
| at the meeting TO explain the complications Oh tne
situation 1t was finally voted to create an advisory
committee consisting OF Charles s. FalrchiH eA7occ
rotary OF the Treasury Walter Lutgen Of August Bel
mont & Co. and Frederic p Olcott. president OF the
| Central Trust Company. to consnlt WIN oPesoi Z"
Co. as head OF the banking syndicate, as 10 the oe'
steps 10 taken to protect the Interests OF crcuors
II is believed that outcome Of the deilbe1auohS
| will be a plan for the reorganization Of the "eo'sia
| Central.
Receiver Conner Yesterday issued the following az
dress to the security and stockholders and CREATORS
OF the Georgia Central:
"rpon assuming the administration Of affairs Oh
YOUR company on the Goth day Of March last rs re-
ceivers, appointed by the United States Orcul' anu
District Courts Of Georgia, attention was hrst
,nperayely called TO the necessity Of creating an
orgnnIzation for the operation of the property, IL
having previously been operated by the Richmond ana
Danvinc Railroad Company under lease contract
With the Georgia Pacific Railroad Company and It's
oneratinC departments having been merged INTO lhe
| rspondlne departments Of that company 20
nuch time wa, necessary for this and others matters
nrnssnr for attention that II not until early In
| lime that full statements OF the financial condition
| could be prepared. These statements snow Wa'
the fixed charges and interest on the large noathg
| dott that had been created were considerably III
excess OF the average earnings for the thTec years
| preceding June l. 1891, when the lease 10 ue
| Georgia Pacific was made Under order Of the court
over 5000 900 were paid to employees for services
rendered during operation by the Richmond ana
| l7uvIlle Company. This depleted the treasury OF
| the company and the light traffic Of the spring
| months coming on, We unable TO accumi-
late funds necessary 10 meet fixed charges maturing
| first instant Statements OF the financial condition
| ~ the company were submitted 10 friends who were
anxious 10 repdcr assistance but owing 70 tile TACT
that earnings as shown, when traffic was larger than
now were insufficient 10 meet interest and rentals they
1 reluctantly declined to more than lend suihclen,
amount b pay obligations upon the auxiliary system
This was done 70 prevent diSntegTation, beleVinR
that much OF the present and future values depend
upon holding the property together until some IAN
| and equitable plan Of reorganization can be per
| tected While this Is being considered, beg 10
assure you that, having the cooperation OF many OF
| tie largest creditors and security holders OF the
company, the present status OF the different classes
| OF securities as they relate 10 each other VIII be
preserved the property economically operated, and
| every effort made avoid unnecessary expense and
consequent waste
| AS soon as practicable full report Of the con-
dluon OF the company will be submitted, which will
enable you TO lntegcntly consider the interest OF
| yourselves and the company