The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-09

to the Central railroad affairs and ask for
a reply to be published with it. | appre-
ciate fully your desire to give TO those in
terested, aud to the public, all the facts you
can which pertain to the subject L feel ii
my duty as far as l can to aid In this, par
ticularly 80 in this Instance, as Mr.%Cal-
houn was for several years prior to the ap-
potntment OF receiver. prominently con
nected with the affairs OF the company,
and who, perhaps more than any one else /,
controlled and directed its policy.
In connection with this beg to say, how
ever that have neither the time nor the
desire to enter into newspaper controversies,
and will therefore confne what have to
say to plain statement of facts, most Of
which have already been published in the
reports of the company.
In June of last year | was In New York
for the purpose of borrowing money to pay
the interest and rentals falling due July /.
At that time, though 1 realized that the
company was In a critical condition,
thought 1t possible that If enough money
could be borrowed to tide it
over until = fall, that It might
be carried through and saved from bank
ruptcy. At that time, which was before
the default, the offer was made TO extend
for five or ten years the tripartite bonds at
5 per cent. THIS was, Of course, upon the
idea that the property was solvent and
would be atie to pay its interest and fixed
charges. l exerted myself to raise the
necessary amount 20 pay the obligations in
the way of rentals and interest referred to,
about 100000, but could get only $500, 900,
and that upon the condition that it would
be used only in paying such obligations as
it was necessary to meet in order 60 pre-
vent disintegration OF the system.
Failing in my efforts to raise the necessary
amount to avoid default, aud as it would be
six months before the tripartite bonds would
mature, and as default was unavoidable on
July /, there was no necessity TO consider
the matter of extending the bonds unless
some arrangement could also be made to
fund the large floating debt, So, 700, 900. Of
which, under the terms Of the Speyer con-
tract, became due at once. Ny efforts were,
therefore, addressed to this and to holding
the property together until something could
be done in that direction.
Meanwhile investigated thoroughly the
affairs OF the company, and became satisfied
that under existing conditions the property
could not earn its interest and rentals, and
that some equitable plan Of reorganization
by which the fixed charges could be reduced
was absolutely necessary.
Just here | will remark that Mr. Calhoun
In April OF last year expressed to Mr.. b. G.
Cunningham and to me the opinion that
the property could not earn its fixed charges
ana interests on It's uoatlnR DEBT, ana was
subsequently informed by a member Of the
firm of Speyer & Co. that at the time the
Speyer contract was made it was under
stood that all the properties Of the Terminal
Company, including the Central, were to
be reorgsnized. AS Mr.. John G. Calhoun
negotiated that contract and as Mr.. Pat
Calhoun was ut that time director Of and
general counsel for this company, and also
a director of the Terminal company, pre-
sumo he also understood this.
/ have said that for the period Of five
years, 1887 90 1891 inclusive, the company
did not earn enough money to keep up its
good physical condition, including equip
ment and pay its fixed charges interest and
dividends. Mr.. Calhoun tries to producea
different impression, but at the same time
produces figures from the reports of the
company which prove it to be true l will,
however endeavor to make it plain.
That the property was in good physical
condition at the beginning of this period.
quote from the report Of the president 1887:
at may be stated briefly that the prop
erty generally is in excellent condition,
both as regards track and equipment"
Mr.. Calhoun was at that time q director
OF the company.
Now, so far as have been able TO find
from the records OF the company. money
was obtained during the period referred to
from the following sources: