The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-04
The centrars Tr!pertlts Bonds.

The Centrals Tr!Dertits Bonds.
Those who are seeking % prevent the
sale of the Central railroad 20 pay the
tripartite bonds lay great stress upon the
willingness OF certain parties in New York
to take these bonds and hold them until an
other plan OF reorganization can be agreed
upon that will not involve the sale of the
road. They seek to give out the impression
that those offering 20 take the bonds from
the present. holders Of them have more con-
fidence in the future OF the Central property
than those now engaged in reorgRnizing il.
They must think that the junior security
holders are lacking IN information relative
to the value OF those bonds and OF the Gen.
trails affairs Any strong financial ins tjtu-
tion in New York or elsewhere would be
glad to get the bonds and hold them for
years. They bear per cent. interest, and
are gilt edge security. It is about as GER
tain as anything can be, that they and all
accrued interest will be paid.
Before foreclosure proceedings were
begun two Of the strongest financial insti-
tutions in New York offered TO carry them
for several years and to agree TO a reduc-
ton Of interest to 3 per cent. That offer
was very much better than tie Offer which
appears in the petition for an injunction
against the sale Of the road.
But why wasn't it accepted The reason
was that the road cannot earn its fixed
charges Sgd interest on its floating debt.
1t is absolutely necessary that the floating
debt should be got rid Of That
debt. amounting to nearly S6,O00 900,
must be paid. 1t is secured by consolidated
bonds, based upon q mortgage, and il JUS
tice Jackson should enjoin the foreclosure
of the tripartite bond mortgage, foreclosure
| proceedings would be begun on the consol-
dated bond mortgage. The junior stock
holders would have to bear the additional
expense Of another foreclosure suit, and,
that too, without any reorganization plan
to protect their interests
1t seems to be clear that the purpose Of
the suit to stop foreclosure proceedings is
not for the benefit Of any Of the security
holders of the Central The plaintiffs in
that suit distinctly say they are large
holders Of the bonds of the Macon and
Northern and the Chattanooga, Rome and
Columbus roads-two roads that we're
| saddled on the Central two or three years
ago, and which are not included in the re-
| organization plan. The Centrars books will
doubtless show that these roads have never
paid operating expenses, and that they were
in extremely bad physical condition when
the Central was burdened with them. The
policy that prevailed in the CentraTs man
agement when they were acquired was not
a wise one, to say the least Of it. On the
Macon and Western bonds the Central is a
joint indorser with the Richmond and DAN
vile. The Central is not an indorssr of the
Chattanooga, Rome and Columbus bonds.
The conclusion, therefore, is irresistible
that the purpose Of the injunction suit is to
force the Centrars reorganization commit
tee to take care Of the bonds Of these two
roads IN the reorganization plan. In view
of the circumstances under which the roads
became part of the Centrsrs system IL is
hardly probable that any court would make
the injunction permanent.
1t is true that the Central is a great ard
valuable property, and, wisely directed,
would doubtless have continued to pay its
fixed charges. 1t certainly was NOT good
! policy to pay dividend of s per cent. on the
stock if. as stated, the road has not earned
its fixed charges and interest on It's floating
! Assuming that statement to be correct it
can be readily seen how the floating debt
! was accumulated.
Even when the Speyer loan was negotiated
it is understood that those on the inside re-
gsrded reorganization of the Central and
all the other properties OF the Richmond
Terminal as necessity and spoke of it as a
matter that would nave to be undertaken in
| the near future. The floating debt is much
larger now than it was then. The junior
security holders therefore, should study
carefully the Centrels condition before res
fuslng to go into the plan of reorganization
that is offered. After a careful review of
it they will probably reach the conclusion
that the plan offers them more than they
are likely TO get by any other plan.
| To-day the municipal political war that
has been waRed in Chicago for a month past
will eliminate in the election of mayor
and council. The fight has been exception
! ally bitter. The regular democratic candi-
| date, Carter Harrison, who has already been
mayor three times, is regarded by almost
every newspaper in the city, except his own,
as the representative OF the very worst elo-
ment Of the population, the thieves, thugs.
gamblers and toughs generally. On the
other hand, the republican candidate, Mr..
Allerton, judging from his published
speeches, is a man Of limited education and
few accomplishments, and hardly a better
man in other respects than his opponent. 1t
is unfortunate that Chicago should be COM
PEELED to choose between candidates, both of
whom are undesirable, at this particular
juncture. The man elected to-day will be
the worlds fair mayor" which position
should have been given 20 some man DOS
se'sing an irreproachable character and all
Of the gentlemanly accomplishments.
Jerry Simpson must be teelin g very lone
some In Washington these days. Since Mr..
Tom Watson left the capital Jerry has had
to flock mostly by himself He constitutes,
in his own person, an aristocraoY of brains
which forbids his mixing" much with the
other populists of the wild west. and it is
even reported that he doesn't think much Of