The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-02
WILL NOT AFFECT 1T.
CENTRAL REORGANIZATION WILL
ONIN SPITE OF LITIGATiONS.

]
! Col GarTard Talks-A Lun in Secu-
rity Deposits Yesterday Due to Bx-
| tension Of Time.
The notice Of the application made to
Justice jackson Of the United States
circuit court of this circuit and not the
supreme court. to stay the foreclosure
| proceedings in the suit by the Farmers
Loan aud Trust Company Of New York on
the ground that such would be hostile to the
best interests of the junior security holders
has excited no little comment among those
interested in Central railroad matters here.
1t ls characterized by those familiar with
the situation as another attempt to delay
and hinder the reorganization Of the prop
erty instigated by parties connected with
the Richmond Terminal, for reasons of
private gain.
Receiver Conner is out of the city at
present. being in Macon where he has gone
to appear before Judge Speer to-morrowin
the matter OF the complaint Of the Central's
engineers made before that court, aud
could not be seen in regard to this new
feature Of the hostility.
COL. GARRARD TALKS.
Col. Garrard, Of Garrard, Meldrim s.
Newman, attorneys for the reorganization,
III speaking Of the petition for the stay of
foreclosure proceedings filed by Pat Cal
Butler, in behalf Of Alexander Brown &
Co., simon Borg & Co., and Others, said
yesterday:
The application made TO Justice Jack
son, as reported in che MORNING NEWS of
to-day, is before him as circuit justice just
as If it we're filed before one Of the judges
of this circuit. Il is not proper at this time
to outline what the legal positions taken by
the defendants to this petition will be. A
reorganization plan is now being effected,
under which large deposits have already been
made, which has commended itself as equit-
able and fair to all classes of securities in
cluded in the agreement. The Macon and
Northern road and the Chattanooga,
Rome and Columbus road were de-
signedly left out by the committee, for the
reason given by them in the published agree
ment. The committee felt that they could
not offer for these properties such values as
would probably be asked for the same, and
therefore left them out of the plan. Mr..
Borg seems to be a large owner Of the
bonds of the Chattanooga, Rome and Coz
lumbus, aud Messrs. Alexander Brown 81
Co. of the Macon and Northern, and these
owners of bonds, no doubt, are not pleased
at being left out They doubtless think
that their properties are worth more than
any ordinary reasonable man wants to pay
for them. The Macon and Northern is
bonded for So, 900 a mile, practically
double as much as it is worth. The Chatta-
nooga, Rome and Columbus, as is shown by
Mr.. Corners report, is losing road in every
| respect, and it will take a large amount of
money TO put 1t in good condition.
THE TRIPARTITEs GOOD INVESTMENT.
"As to the offer made in the petition to
buy up the tripartite bonds, any one would
do this, as they are deadsure, underlying
security bearing per cent. interest. II
Mr.. Brown aud Mr.. Borg and others could
buy up these bonds and keep them several
years, stopping the foreclosure now and
foreclosing wnen they please, getting per
cent. on them, when under the reOrganiZa-
ton plan they would be paid off and securi-
ties substituted in their place hearing per
| cent, it would be a considerable loss to the
Central and, Of course, q loss to all security
holders.
THE foreclosure OF this tripartite mort
! gage was brought about by the direct re-
| quest of the Mutual Life Insurance Conn
pany as the holder Of about 100000 of
these bonds, and was not requested, directly
| or indirectly, by the reorganization COM
mittee, or any one in its behalf. The hear
ing will take on April 20 on this petition
before Judge Jackson, at which time full
| ueIense Will be put IN.
WILL NOT STOP REORGANIZATION.
GAS to the Savannah and Western case,
in which application for an independent re-
oeiver is now pending in the United states
| court In the Middle district of Alabama, the
hearing was postponed because only a few
days, practically, were given for prepara-
! tion, aud it required more time to get up
the necessary attidavits and briefs. Upon
! the hearing OF this petition we shall GER
tainly endeavor to have MIR. Conner re-
tanned as receiver, as being for the best Inc
terests Of all concerned, aud bondholders
| holding several millions of dollars will in
dOrse his retention.
"These litigations cannot stop reorganiza-
ton, though they may retard 1t to some ex-
| tent. Reorganization plans are Favored by
the courts, as has been repeatedly decided,
| because there is no other method by which
the many and conflicting interests OF
security holders can be- at all protected"
MR.. LAwToN's VIEW.
Mr.. A. r. Lawton said yesterday that he
understood the application TO be inter
vention on the part Of the petitioners, whose
petition was that they he made party TO
the suit. In the event foreclosure was
stopped under the Iripartite mortgage, he
| said, foreclosure proceedings could be in
| stituted under the consolidated mortgage.
which comprised about IS, 100000 in bonds,
| most OF winch are IaVOTAplS 10 GnS Te0TBau-
ization of the Central system, and the plan
! would go on all the tame.
II He said the case would be fought, but
just exactly In what manner had not yet
been determined. While all these suits have
a tendency to interfere, he did not believe
now that any Of them would seriously effect
the reorganization plan.
THE SECURITIES YESTERDAY.
While the deposits yesterday were not so
heavy as was the case on Thursday and
Friday, they came in steadily, and several
large deposits we're made. One deposit of
of Southwestern stock amounts to more
than $4,000 The lulI in the deposits is
attributed by those in charge to the fact
that the time has been extended, and was
affected very little, il any at all, by the ap-
pltcatlon for stay Of the foreclosure pro-
oeedlngs above referred to.
The committee charged with the reorgsu-
izatton of the Central Railroad and Bankiu g
Company and its allied lines, has. at the re-
quest of important interests, extended the
time when securities will be received to
May !, 1898. The large amount OF securities
already deposited, and the cooperation OF
additional amounts now pledged TO the plan,
warrant the committee in the opinion that
the success of the proposed reorganization
Is undoubtedly secured. After May l Sc
curities will only be received, if at all, upon
the payment OF penalty Of per cent.
h0 mar wrsI 4AWa han a