The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-03
CALHOUN'S NEW MOVE.
A PREDICTION TaAT THE CENTRAL
WILL NOT BE SOLD.

the Property Can be Saved.
ATLANTA, GA, April 2.-Pat Calhoun
arrived IN Atlanta from New York Satur-
day night, and in an interview to-day pre-
diets that the Central railroad will not be
sold under the hammer, and that the Hol-
Inns plan for the reorganization of the sys-
TEN will not succeed. Mr.. Calhoun's trip
south at this time seems to be significant.
For year or more he had apparently been
9 looker-on at the railroad situation in the
south, but he has evidently been doing
more of late than simply watching
things. The move he made on Fri
day gives new turn TO
the problem of reorganizing the
Central. MIR. Calhoun stated that be had
no information about the Richmond and
Danville affairs or the Terminal, but be-
lieves that Drexel, Morgan & Co. will re-
organize the properties.
In regard TO the offer Of Alexander
Brown & Co. ana the other bankers whom
he represents as counsel to buy the Centrars
tripartite bonds, "a, 999, 900, and to take up
the floating debt Of 81 800 900, with past due
interest, he talked at length,
EXPLAINING THE MEANING
of the steps when asked what was back of
the proposition of Messrs Alexander Brown
& Sons, Simon Borg g. Co.. and their asso-
ciates, to purchase the tripartite bonds and
stop the sale Of the Central railroad, he
said: "There is nothing behind the move
ment except an honest effort on the part Of
my clients to protect their own interests
and that Of the other junior security hold
ers, and a sincere desire to aid in securing
the Central system from the wreck into
which it has been plunged. The interest of
my client is the interest of the Central
stockholders, and of every junior security
holder Of the system"
Mr.. Calhoun. Mr.. Lawton in his inter-
view this morning. intermates that your
clients should have taken this action long
ago."
I'm this he is mistaken. 1t was not easy,
under all the circumstances, to raise the
S5, 500. 900 necessary to protect the Central
from foreclosure Il is not easy for the /
minority security holders to raise money TO
defeat a widely extended and deliberate
plan to foreolose their property. My
clients have
NOT DELAYED A DAY LONGER
strange that any security holder who has
the real interest of the property at heart
could object to an effort TO prevent it from
being sold under the marshars hammer.
Ia the minds of the people
of the country think there is still an i'm
preston that the property is not to pass
under the marshal's hammer except as a
last resort, when every effort to save it has
failed.
"The tripartite bonds are due and instead
of an effort TO sell the road out at fore
closure sale under the mortgage securing
them, OF under the consolidated mortgage
securing the floating debt, every security
holder % the Central road is deeply inter
ested in providing some means by which
these debts can be paid off aud
THE PROPERTY SAVED.
instead Of wrecked, whatever efforts may
be made in the future, however, to further
wreck this property, feel quite confident
will be thwarted. There is substance be-
hind the present movement and it is decid-
edly advantageous TO the Central security
holders. 1t would certainly seem proper
for the present management of the company
to cordially welcome any newcomer who
could bring material aid to the company,
and the capacity of my clients to do this is
found in their ability and willingness to
purchase the tripartite bonds and stop the
foreclosure, which no one else has been
either able or willing to do"
Are your movements influenced by
mere hostility to the Hollins pIanT
''Not at all. l am extremity anxious to
see the Central put on its feet. | have
strongly opposed every effort to wreck it,
no matter where or by whom originated.
am now and have always been willing to
to take off my coat to save it. OF course,
it is we'll knowE that I have never been in
sympathy with the effort TO confscate the
majority stock, nor have l believed for
moment that such an effort could succeed.
l have never hestated to express this
opinion. and I have only been surprised
that any stookholder should fail to
see that his interest lay in trying to pre-
serve the rights Of the majority of the
stock. It Is perfectly clear that this large
block of stock is vslueless unless all tie
debts and securities ahead of it are taken
care of. have
NEVER FAVORED THE HOLLINs PLAN
because regarded it as unjust and lnequita-
bic and based on wrong principles, and l
have never believed it would succeed. 1t
carries on its face manifest defects that rem
der its success impossible. While express
ing this opinion to those who
sought my views, 1 have care
fully refrained from public expression
until could clearly see my way to some
thing better to offer the security holders"
"Do you still think we'll of the Central
systems"
"Unquestionably my opinion of its value
has never changed. 1t is a great property,
and confidently believe the future will
vindlcate my Judgment. 1t should be re-
membered, however that the terrible an
tagonism against railroads in this state has
borne bitter fruit, and has given the oppor-
tunity to break down the credit and destroy
the efficiency Of railroads The security
holders must. therefore, unite to make
mutual concessions in order to put their
property on its feet.n
"but what about the foreclosure under
the floating debtp
so wa will cross that hridga yyhan we