The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-06
CENTRAL A BORROWER.
CONCENTRATION OF LOANS WITH
HOLLINs.

AASLIAlN5s
Orders Of Court Eecan.Iy Issued Just
Made Pubuc-Tha Total Amount IN
volved $5,I9A, ,2GO-All the Prop
erty OF the Company Made Liable for
the New obligation.
AUGUSTA, GA, April 5.-An agreement
was entered into on Jan. % by Judge Speer
OF the United States district court for the
Southern district Of Georgia in behalf Of
tho Central railroad providing for securing
q new loan Of 5000 900 from the Mercantile
Trust Company of New York, trustee, aud
h. b. Hollins & Co., and for confirming
previous loans from Hollias q Co. Of
S3,SS9,2O6 81, and from the Mercau-
tile Trust Company Of New
York for $7O5 900 G3, the three loans
aggregation IS. 49,, ,26g. Honins & Co. are
to control all securities deposited with the
reorganization committee. The Central
railroad pledges everything it owns, stocks,
bonds, land and leases to secure the pay
ment Of these loans from Hollins g. Co.
and the Mercantile company. The seouri-
ties deposited under the plan of reorganiza-
ton are made liable for oil charges incurred
In the promotion Of the reorganization, said
charges to be passed upon by the court.
OTHER LOANS
loan was made by the Mercantile Trust
Company of New York to the railroad
company under an order granted Dec. 10,
1892, for S70563O, payable with Interest,"
and commissions July I, 1925. The last
loan was made pursuant to an order of court
OF Jan. 10, 1898, confirmed by q subsequent
order Of the court OF Jan. %, 1898, which is
for 100000.
The agreement approved by the court re-
cites that it is made between tho receiver,
the Mercantile Trust Company OF New
York as trustees and Hollins q Co. as joint
agents aud attorneys for the syndicate.
This provides that the trust company shall
have the right at any time before July l,
lSJ4, TO purchase any or all of the matured
or uumatured claims Of any assentinR or
non-assentlng creditor, and such pur-
chase or repayment OF such loans shall not
operate to extluguish the same by the payer
or purchaser thereof, and shall be subordi-
mated to the rights Of such assentiug cred-
itor thus paid. That subject to tho loaus
placed upon the property by this agrees
meut, the securities and property in the
hands Of the trustee shall be chargeable
with lien and may be used by
the reorganization committee of tho
railroad company es O fund for the payment
OF all charges and expenses to DO paid or
incurred by them in promoting such plan
or reorganization as may be finally ec-
copied by them, said charges and expenses
being first approved by the circuit court Of
the United States for the eastern division Of
the Southern district Of Georgia in term
time or vacation.
CAN BE USED TO SECURE CONTROL.
By this agreement the trustee ia author
lied and empowered to, and upon the
written request Of Hollins a. Co. and upon
proper indemnity, shall from time to tinle
use in such manner as shall be requested by
said syndicate, all or any portion Of the
stocks and bonds or other property thereby
conveyed to acquire ownership of tho
respective corporations Of which they
are or form part OF the capital, secured
by mortgage o. otherwise. Whenever
in the Judgment of the syndicata, by
reason Of foreclosure proceedings or other
wise, tho protection OF said stooks aud bonds
require them to be 50 used it being thereby
expressly agreed that any stocks or bonds
wnicn may accrue to the stocks and bonds
so used, by reason of any reorganization of
the respective corporations, shall
remain to said trustee in place
end stead If bonds 30 used,
subject to all the terms and provisions Of
this indenture as though they had been
originally conveyed hereunder. This agrees
ment provides that the trustee accepts the
trusts hereunder aud agrees to perform the
same, but shall not be responsible for
anything except its own willful de-
fault or misconduct, and shall receive
fair compensation for all services rendered
by it to be paid by the receiver and to be
first lien upon the proceeds of the property
therein conveyed.
SPEYER REIMBURSED.
The receiver agrees that out Of the money
loaned him Hereunder he will cause to bo
paid without unreasonable delay Sl8.500 to
the syndicate represented by Hollins 81 Co.,
who made the loan Of SO, $50, BOG 81 on Oct. z,
1892. Said Sl8. 800 having been paid by said
syndicate to Speyer & Co., for expenses
incurred by the latter. That il for any
reason any Of the properties, assets and
franchises Of the railroad company, or any
OF its allied properties. should before July
l. 1898, be decreot TO be sold by any court
under any lien now existing thereon, or
hereafter to be created thereon, then
and in that event the loan herein agreed
Co be made, and said loan OF
S., ,8S9, ,zOG 81, aud said loan Of S705. .063, to-
gether with interest upon all Of said loans
and the commissions attached thereto res
spectiVelY, shall at the option of the parties,
each and ell Of them, become due and pay-
able at once upon the rendering Of such
decree
Tho agreement closes with this statement:
ain all matters hereunder in which the
syndicate is interested II. 3. Hollins & Co.
shall ue treated and considered as general