The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-02-10
DEPOSITS ROLLING IN.
MR. CRANE KEPT BUSY RECEIV-
ING CENTRAL SECURITIES.

Blocks Turned Over and Others &c
Come in a Few Days-Difacultles
About the Deposits OF Securities
Belonging to Estates and Trust
Funds-Power of Attorney Must Be
Delegated to Somebody-How the
Interest is to Be Paid.
The indications appear to be that the de-
pcsit Of securities for the Central railroad
reorganization will be made as rapidly as
desired.
Vice President Crane Of the Southern
Bank, the agent of the Mercantile Trust
Company in Savannah, has been kept busy
for the last two days receiving deposits and
making out receipts. The work promises
to engross his entire time, and Mr.. Crane
said yesterday that It would be necessary
Tor him to secure the services Of two or
three competent men TO assist him
Several large deposits we're made yester-
day and the day before, besides num-
Der Of smaller ones. The largest
amount Of securities deposited by any one
person was 81, 600 One deposit contained
twenty~six different classes OF securities.
Several very large security holders have
already notified Mr. Crane Of their lnten'
tion to deposit their holdings shortly. One
of these has $40, 900 of debentures alone.
SOME OF THE msTAKs MADE.
Il has already been found that
there will be considerable trouble
In receiving deposits from parties
who do not fully understand the require
ments. Some have forwarded scrip expect
Ing TO receive receipts for stock, which can
not be done. Others have forwarded stock
and securities by mail or express without
mir of IL
sary before the deposits can be accepted
Again others have forwarded their holdings
by express without preparing expressaRe
The bank has no authority to pay express
upon deposits made in this manner.
Mr.. Crane says that the amount OF detail
work already in prospect is enormous. The
most difficult matter now confronting the
trustees for the depositors and the deposit
ors themselves is the depOsiting of holdings
of estates, trustees for minor heirs and cor
porations, executors and administrators Of
wills All OF these will have
to secure the permission Of the
court to take this action, and if IL is neces-
sary for the attorneys in every instance TO
make petitions to the court setting forth
the plan and objects Of the reorganization
the procedure will be both costly and
troublesome.
TO REMEDY THE TROUBLE.
To obviate this necessity Col Garrard,
who has charge Of the legal affairs relating
to the reorganization at this end of the line,
proposes to introduce into the courts In
some shape, bill or petition containing all
the necessary allegations, 50 that it will
only be necessary for parties applying
subsequently to refer to this statement
without going into the details in full.
Copies Of the agreement between the Mer-
camille Trust Company, the reorganization
ommittee and the committee OF Central
railroad directors representing the stock
holders will be received IN Savannah in a
day or two and will be distributed for the
information of the holders OF stock and
securities desiring to make deposits. The
agreement contains IN full all the eXplana-
tions in information required by the de-
positors,
Probably the most important informs-
tion given in the agreement is contained in
table G. This has already been received
here. and is published in full as follows:
STIPULATION OF TABLE c.
/. Interest on the following will be paid in
cash to July /, 1898:
Secured floating debt and equipment
notes.
General tripartite mortgage bonds.
2. Interest calculated at the rate of per
cent. on the new bonds issued for the fol-
lowing securities will be paid as from the
terest or rentals up TO July l, 1898:
Collateral trust per cent. bonds.
Ocean Steamship Company per cent,
bonds.
Columbus and Western first per cent.
bonds
Montgomery aud Eufaula first per cent.
bonds.
Augusta and Knoxville first per cent.
bonds.
Augusta and Savannah per cent stock.
Southwestern railroad z per cent. stock.
Interest on the new bonds will begin to
run from July /, 1898.
The payments above provided for will b.
made either at the completion Of a reorgani-
cation or previous thereto, as the committee
deem most practicable, irrespective of the
date of deposit Of securities. No provision
will be made for arrears of interest or rent
ais, other than as provided in this table.
HOW TIE INTEREST WILL BE PAID.
In talk with MoRNING NEWS reporter
yesterday Col Garrard explained the state
ments contained in table C. Interest o.
the rate Of per cent. will be paid on chs
secured floating debt, equipment notes anC
the tripartite mortgage bonds to July
1898.
Interest at the rate Of per cent. will b,
paid on the present par value of the stock
and bonds mentioned in the second section
fault to July l.
This, it will be seen by comparison with
the table of exchanges given in the plan Of
reorganization, is merely paying the pei
cent. per aunum upon the amount Of thu
new bonds to be given In exchange for thu
present securities. No interest is allowed
upon the stock to be given In exchange be
cause that evidently is not earned as yet.
The default upon Southwestern stock tc
July next will amount to one year, which
will give the holders of Southwestern fou
points In cash besides the ia, as estimated
In exchange for the present stock.
1t is proposed not to pay the default Il
July upon the debentures, the Savaunal
and Western bonds, the Savannah and AT
Iantic and the Columbus and Rome bonds
1t is held that these have already beef
amply cared for In the exchange value of
fered in the reorganization and that ii viii
not be necessary TO pay anything further.
WILL HAVE TO TAKE CHANCES.
After July l the holders Of these securi
ties will take their chances with thei
new securities under the reorganization
How the holders of the debentures and tn
junior bonds will accept this proposition re
mains TO be seen.
The opinion was expressed yesterday tina
large deposits would be made as soon as th
question of the entry of the Southwestern
railroad into the reorganization is dispose
of What effect the faili1ra If rho y,aetjn,