The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-09-25
IT WILL GO THROUGH.
A BELIEF THAT THE CENTRAL'S
MOVE WILL BE SUCCESSFUL

tsxing-A Savannah Brokers' Talks
With New York Men-Director How
ellis statement-A Little Matter in
the Terminal
The scheme to rehabihtate the Central
railroad is all the talk in financial circles.
Can't. Henry Blum returned from New York
Yesterday morning and was asked in regard
70 the situation there. He had nothing
directly from those said to be interested in
the move, and only heard reports floating
around New York
From what he heard he said be believed
the people who proposed to take hold Of the
Central and re-establish it are in earnest,
and be believes further that they will be
successful
NOT HARD MATTER.
"The Central is too valuable q property
to be kicked and cutEed about in the courts"
said Capt Blum, and IL it can earn now
what it has earned in the past there is no
reason why its restoration should not be
easy, provided sufficient money can be
secured to carry out the project. There
are some very rich men mentioned in con-
necUion with the move, and men who stand
high in every way"
Capt Blum said be did not believe Mr..
Conner is averse TO the proposed plan, pro-
vided he is assured Of its feasibility. II
change of policy is deemed necessary he
Thought Mr.. Conner would willingly relin-
quish the control to any man worthy Of the
responsibility and who is capable and will
ing to assume charge Of the r0ad-
THE COMMITTEES PLANS.
The purpose Of the committee so far as he
had learned, Capt. Blum said, is understood
to be TO raise sufficient money to take up the
Speyer loan and pay the floating debt, TO
fund the debentures with bonds bearing 4
per ce MT. interest and 10 scale the interest
upon existing bonds. The idea is
that per cent. is as high
as the Central can afford TO pay upon its
bonds. If the present holders are unwilling
TO accept this they will find plenty OF peo-
pie in New YORK who will be glad 70 take
them at that.
Capt. Blum did not believe a reorgsnizs- |
ton upon the idea first suggested could be |
successfully carried out. There were some |
very vicious rumors flying around New
York, be said, with regard TO the Imam
Calhoun party and the Richmond Termi-
nal The present party in control Of the
Terminal is saying some very hard things
about the Inmans and Calhouns.
A GoOD-srzED SUN.
One report is that they have discovered
where a check for S67 900 was paid to Pat
Calhoun by President Inman Of the Rich
mond Terminal for services In ths lease
matter. The check, it is said, was not
passed upon by the board of directors, but
was paid upon the order OF President In
man, and the amount deposited in a New
York bank, where il was drawn upon by |
Mr.. Calhoun. 1t is also charged that whom
the lease Of the Central was made by the
lnmans aud Calhoun to the Terminal
The road was represented TO be earning Il |
per cent per auUuIn, aud statements were
presented Of the roads earnings and expen-
ditures to bear out this statement. In in |
vestigating the failure of the Central to
earn what was expected OF it, the discovery |
was made that there we're $500, 900 of ex-
penditures in one year that did not appear
In the statement presented b the Terminal
company.
THE TERMINAL PEOPLE MAD.
The Terminal people are mad, Capt. Blum
said, and are determined that the Inman-
Calhoun party shall disgorge. They want |
them to take back their $4,000 shares of |
Central stock and return the securities |
which they received in exchange for the |
stock. This is not regarded as a very likely |
possibility, however. 1t is probable that |
they will enter suit against the Inmans and |
Calhouns for the difference IN the price paid |
for the Central stock and the market value |
Of the stock at the time
DIRECTOR HOwELL's INFORMATION.
Director E. p. Howell in u special from
New York Friday TO the Constitution
says:
'The Georgia Central board has been In
session here for two days, and adjourned
to-day. They we're called together at the
Fifth Avenue hotel by President Conner, to
consider proposition to rehablitate the
road, made by a strong syndicate of cap-
itallsts OF this city, Boston, Baltimore and
Philadelphia.
mir. H. B. Rollins was elected chairman
of the syndicate aud Mr.. Wharton secretary.
They will immediately go to work to form
plan to put the Central on its feet again,
pay off its floating debt, and take the road
out of the hands Of a receiver.
'They express the utmost confidence III
the solvency Of the road, and say all it
needs is fair treatment. Many Of the syn
dIcaue were holders in stock or bonds in the
Central, or its connecting roads. Mr.. Hol-
Inns himself has about 500, 900 in the bonds
of the Southwestern Several Of the syndi-
cate are also large holders, and they are
ell well posted 0bout the condition OF the
Central
INSIDE OF THE PROPOSITION.
at is well understood here that the
reason why these men made the proposition
was that they have ascertalned that Speyor
81 Co., who loaned the Central So, 700 900
last year, which is due in November next,
were working scheme for recognizing
the company by cutting the stock
and bonds down $500 900 or $4,000 COO
SO as TO reduce the fixed charges to
about 81 500, 900, and then the road was to
be leased TO the Louisville and Nashville.
Speyer's plan has been dead month but
no one knew it but Speyer g. Co, and the
man who killed it. They hoped to revive it
by the default il the interest on the Savan-
nah and Western bonds due in September.
Mr.. Holilus says he offered to paw the
interest on these bonds, but could not have
his proposition accepted.
There will be no change In the status or
the road, until the receiver is discharged
and there is no probability of any change
there until, the January elections. Presi-
dent Conner is doing all he can to relieve
the road OF its present embarrassment.
MR.. GARRETT THE DEVELOPER.
ITO Mr.. j. K. Garnett of Savannah. how
ever, Is due the credit for the deYslon-
meat of the present scheme He has been
working on it for seven weeks, and has per
slstently insisted that the road was solvent
aud ought to be put on its feet There is a
Lively advance in Georgia Central stock and
all It's securities here. IL has even helped TO
raise the price OF Richmond and Danyille
stock, and its bonds
There Is rumor out here that Col.
Charles n. Phinizy will succeed MIR. Conner