The times. [volume] (Richmond, Va.) 1890-1903, 1893-04-09
NO NEW LOANS CONTRACTED.
A False Impression Corrected In Connec-
ton with the Central Reorganization.

AUGUSTA, GA. April S.-The dispatch
cent from Augusta in reference to the
loans negotiated by the Central railroad
and it's plan Of reorganization. having
created an impression that new or ad-
ditionaI loans had been effected, it is
proper to state that Receiver Comer's
report shows that no new loans were Sc
cured. but that existing loans were con-
solidated. aggregating 1l9i.269 The tol-
lowing is from the court record:
To The Honorable Judges Of the Fifth
Circuit Court Of the United States for
the Eastern Division Of the Southern
District Of Georgia:
The petition Of H. NJ. Conner, as re-
ceiver Of the Central Railroad and Bank
IL COMPANY Of Georgia. rcspe ctfully
shows 10 the court that under ana by
virtue Of an order dated January 10, ls'5'
he proceeded to the city OF New YORK.
and there entered into contract In ac-
cordance with the terms of said crdor
Win the Merchants Trust Compa ~, and
with II. B. Hollins & CO., as agents and
attorncvs In Iact, a syndicate
of lenders. and now submits an
aglecment, and exhibits attached
thereto made and entered into on
the 18th day OF January 1888, and asks
approval by the court Of said agreement
(siqneO II. NJ. CONFER.
Receiver
The foregoing petition has been read and
considered and II is ordered and adjudged
that said contract be and is hereby APP
proved and confirmed I'm open court, jan
uarv %. 1898. Emery Spear Judge.
Receiver Conner emphatically denies
that securities deposited under the plan
Of the reorganization Of tne Central
railroad are made liable in any manner
for expenses and charges incurred III the
promotion Of this plan.
TpOn being interviewed, Receiver conner
said the idea that securities deposited with
the Mercantile Trust Company are La
ble for any such expenses or charges,
is foo absurd to be credited. when the
agreement under which they are deposited
makes statements directly TO the con-
trarv. Only the securities owned by the
comDanv will be liable for charges or
expenses incurred In work. and they only
In so far as approved by the courts. such
securities are the property or the com
nony. and those held and deposited by
individuals are in no way to be held
u,hle as IS stated in the agreement
THE plan Of reorganization, as published
contains full conditions Of everything per-
taininp 10 il. Neither Mr.. HOllins nor the
committee. nor the Trust Company can
use such securities, except as stated IN
the Dlan Of reorganization. IL Is cleatly
stated IN that plan that if the reorganiza-
tion goes through and Is successful that
owners of old securities will receive new
Securities. as stated in the appended
table. IL the reorganization faus the OLD
securities are 10 be relurheu 10 ther
owners free OF charge.
Tn sneaking of the loans said 10 have
haen negotiated with Hollins e Co. and
the Mercantile Trust Company. Mr.. Conner
said: "The statement that large loans
have been contracted by the Central rail-
road IS incorrect and false. Part or the
outstanding obligations OF the Central
railroad, TO the amount or $o.lV'zo9, IN
cluding the Spoyer loan and others nave
simply been taken up by Hoillhs 20.
and the Trust Company and made over