The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-14
THAT ORDER ALL RIGHT.
1T IS EXPLAINED By ONE FAMIL-
lar WITH IT.

The Contract Was Originally Made
By the Richmond and Danville When
the Central Was Operated By That
Roed-Ihe Motions the Result OF the
Terminals Desire to Get More For
Their Stock Under the Reorg aniza-
ton.
To those who heard the remarks Of Henry
Crawford, Esq, attorney for the Richmond
Terminal Company, arraigning Judge
| Speer as be did in the United States court
this week. his charges in regard to the order
passed by the district judge authorizing tho
| transference and consolidation of the Cen
trails loans with the Hollins syndicate and
the Mercantile Trust Company of New
! York seemed very sensational; that is, to
those not acquainted with the facts
Those who understood the situation
thoroughly" remarked a well-known gen-
tleman. prominently connected with Cen
trial affairs, yesterday, saw nothing 60 oc-
casion much surprise, 80 far as the charges
in regard to that order are con-
cerned. The filing OF the motions created
some little surprise for the moment, but it
was perfectly natural for the Terminal peo-
pie TO Interfere with the proceedings, as
they, like all other stockholders, desire to
get all they can out OF their stock under the
reorganization. The speech of Mr.. Craw-
ford at that Juncture, however, had about
as little relevance as would the introduction
or divorce proceedings in a suit for horse.
The exchange Of securities under the
proposed plan was Of course made on
mathematical basis, and those whose securi-
ties are most valuable under the present
condition OF the property Of course get
more under the new plan. The capitaliza-
ton OF the system is to be increased, but the
owned by the Terminal people
stands at the bottom Of the
list along with the other stock
in the roads covered by heavy touded in
debtedness. aud it Is of course natural that
they should make an effort TO get more for
it than 10 offered. l believe, however when
the motions are heard. and the situation is
fully explained. it will DO realized to be best
to let the property take the course now pro-
posed.
But with regard TO that order. The i'm
preston was created that the court and the
receiver were responsible for that contract
made consolidating the loans with the Hol-
Inns syndicate, and giving them an option
on the sale Of the collaterals if the indebt-
edness was not paid. The truth about the
matter Is that the Richmond and Danville
is responsible for the contract, as they sad
died on the Central while it was in their
control an indebtedness Of about &, COO, 600,
in which was the Speyer loan and otners.n
The contract referred TO was really made
by the Danvilie with the Speyer syndicate
and Others. When these loans fell due the
collateral securities were on the point of
being sold for the debt, when the receiver,
with instructions from the court, obtained
the money to pay them from the Hollins
syndicate and others and the securities
we're then transferred and these loans con-
solidated under q similar contract.
Neither the court nor tho receiver has
contracted any loan, except a small ono
necessary to pay few small debts and some
interest due. The Terminal people may have
created somewhat of a sensation, but an in-
vestigation of the orders will show that
they are entirely regular and proper"