The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-07-17
BACK FROM new YORK.
Mr.. Conner Gets an Indefinite EXten-
sion Of the Floating Debt.

Talk About Reorganization Prevented
By the Stringency of the Money Mar
ket-The Formal Announcement Of
the Failure of the Hollins Plan-It
Would Have Been Best for the Junior
Security Holders.
Receiver Conner returned last night
from New York, where he has been with
a committee from the directory, to look
after the Central railroad finances.
The most important part of the work
to be done by the committee was to ar
range for an extension of the floating
debt which matured July l. as under the
orders of the court the road is not to be
sold before the latter part of January.
1--WE met with the COM
mittee representing the holders of the
floating debt, said Mr.. Conner last night,
land agreed upon an indefinite extension.
The first proposition was for an extension
OF go days, but the committee finally
agreed to an indefinite extension of the
debt and upon terms far more favorable
than were expected or could have been
obtained elsewhere. Considering the
strained condition of the money market
they were as favorable as could be OK
pected.
SEVERAL MEETINGS HELD.
Several meetings were held with the
committee and efforts were made to har-
monte all interests, but nothing could
be done towards a reorganization of the.
property and nothing whatever can be
accomplished until the present strained
condition of the money markets. relieved.
The people there are at present inactive,
and money cannot be had at reasonable
rate.
Things were looking up, however,
when | left and the tendency is toward a
brighter outlook. There is S10O0,0O0 in
gold now on the way from Europe to this
country, and the flow of gold this way, to-
gether with the early meeting of congress,
may operate largely towards relieving
the situation. Until the money market is
in a better condition, however, nothing
can be done towards reorganization and
nothing will be done"
FUTURE PLAN
evil plan be formed which will take
in the stOck?" Mr.. Conner was asked.
las to that l can not say" he replied
''There is no way of telling what kind of
a plan will be formed but l am satisfied
that no plan will be presented which will
be as favorable to the interests of the
Junior security holders as the Hollins
facts that it did not meet with the
endorsement of enough of the
security holders, that it was fought so
hard in the courts by antagonistic inter
ests, and that the money market pre-
sented such strained aspect. The cir
cular recently issued by the Hollins COM
mittee was merely the formal announce
ment of the failure of the plan, and gave
practically those reasons"
LARGER EARNINGS HOPED FOR.
Mr.. Conner said that it was hoped that
the earning capacity of the property would
warrant the formation of a fair
plan of reorganization as soon as the mon
ey market would permit of it. This was
all that was signitied by the statement in
the Hollins circular that the property
should remain in the custody of the court
until its earning capacity would warrant
such a course.
In regard to the reopening of the hear
ing of the litigation Mr. Conner said it
was merely to allow the attorneys for the
Southwestern to urge the point that that
railroad was only liable as surety on the
tripartite mortgage, which means that
they will appeal for the sale of the Cen
trail railroad first to satisfy that lien.