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

| 81, SSS 1878 81, or $l,729 per mile was OK
| pended for the same purposes.
Why this great differeucel Was 10 be-
cause further equipment in the way of en-
Rines and cars, rails and other improve
ments were not needed, and were, there
FORE not boughtl Mr.. Calhoun says large
amount was expended for such things aud
paid for out Of the proceeds Of the sales of
Savannah and Western bonds. The books of
the company show that the total equipment
Of engines and cars paid for out OF money
obtained from this source was SS2S, 800 80.
We will therefore have to look to other
sources for the necessary money. On the
twenty-third page of my report Of Oct. 10,
| 1892, 10 the court is the statement used by
Mr.. Calhoun, in which is shown that
1881 $50 was paid for Car Trust notes up TO
March 1892, besides large sums for other
things all Of which came from proceeds Of
either the collateral trust bonds or the float
ioR debt. Besides on March !, 1872, the
company owed 81, 1870 80 for engines,
cars and rails.
1t will be observed that have considered
| only the three things, engines, cara and
rails. as they are shown on the books IN
separate items OF course, the rails for the
Savannah and Western we're paid for out
of proceeds Of the bonds OF that company.
There are other large items in the state
ment, but they were oil paid from the pro-
floating debt The engines. cars and rails
are, however, quite sufficient to prove the
correctness Of my statement that during
the five exceptionally heavy traffic years,
1887 TO 1891 inclusive, the property did not
earn enough to kesp up its physical condi~
ton. including equipment, aud pay liked
charges, interest and dividends
II additional proof IS necessary, refer to
the condition of the property as it was when
fay 1harOa NJ nv the pOnrE l|pA 6afRii
report of general superintendent in fifty
seventh report Of the company.
The statement by Mr.. Calhoun that none
OF the money from fonting debt and col
lateral trust bonds is shown on the books to
have been used for dividends is misleading.
1t is clearly shown that very large portion
Of the money 80 obtained was used for pur-
poses that should have been charged to
earnings, and IL it had been done there
would, during a portion OF the time. at
least, have been no earnings left with which
70 pay dividends.
Ia calling attention to table showing as
sets representing floating debt, Mr.. Cal
houn, in q very general and broad way,
refers TO many things acquired by the
company and one would infer that they
were paid for out OF earnings. 1t has been
shown that all such, except such as are
given in the preceding statement and the
rails and equipment paid out Of the proceeds
OF the Savannah and Western bonds, were
paid from the proceeds Of the collateral
trust bonds, the floating debt, or with equip
ment notes, a large amount OF which is not
yet due.
Mr.. Calhoun says there was a large in
crease in the number Of freight cars and
that the total was 1895. This includes, Of
course, those purchased with proceeds Sa-
vannah and Western bonds. The receiver
found, Of all kinds, including cabs, 1888,
not including some belonging 70 tue Macon
aud Northern railroad, a large number of
which were in the shops and on sidertraoks
for repairs.
How Mr.. Calhoun claims the $76, 4S2 10,
shown in excess of investment over pro-
ceeds OF bonds and floating debt, as earn
ings l do not know. 1t was doubtless a
portion Of the Ocean Steamship Company's
sinking fund.
1t is unnecessary for me to say have
nothing whatever to do with the foreclosure
proceedings begun by the Farmers Loan
and Trust Company under the mortgage
securing the tripartite bonds.
Having, / think. answered Mr.. Calhoun
/ fully, allow me to say that under the terms
/ Of the plan Of reorganization both the tri-
| partite bonds and the floating debt will be
| funded at the rate of 4. 8 per cent, until the
! property earns net S2,350,0O0 or more when