The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-02-03
NO RECEIVER APPOINTED
THE c. AND s. Has SIXTY DAYS
TO MEET ITS INTEREST.

It's Present Default Due to Hard
Times-The Company Hes Ample
| Property to Guarantee It's Bonds.
The Directors Considering the AT
fairs Of the Road.
| The announcement in yesterdays MORN
| ING News that the City and Suburban rail-
( way had defaulted upon the quarterly in
terest Of its first mortgage bonds caused
something Of a sensation in financial circles.
/ The amount of the first mortgage bonds is
/ 5000, 900, besides which there are $50, 900 OF
second mortgage bonds, which were also
defaulted upon Jan. l. All the bonds bear
! Z per cent. interest. The stockholders
have been discussing the situs-
ton for some days, but have as yet
arrived at no conclusion. The road may 20
into the hands Of a receiver, or it may be
turned over 70 the trustees for the bond
holders. The property of the road, it is
believed, is sufficient to meet the full
amount OF the bonds.
THE COMPANY's PROPERTY.
The properly of the City and Suburban
railway consists OF the Abercorn and
Whitaker street line, with connections
through Bay street and Second avenue, the
Liberty street line, terminating opposite
the Tybee depot on Reynolds street, the line
from the market out Barnard, Liberty and
/ West Broad streets TO Battery park, aud
the suburban line to Isle Of Hope and Mont
gomery.
The company also has large amount Of
valuable real estate south OF Anderson
street and at Montgomery and Isle of Hope.
The bonds Of the City and Suburban have
always been considered first-class invest
ment, and until within the last year the
company has had no difficulty in paying
the interest on them. Last summer a de-
fault was made. which was reported in the
MORNING News at the time, but afterward
the money was secured and the interest
laid. The inability of the company co meet
the interest on its bonds is attributed TO the
general dizziness Of business during the past
year and the building of rival lines which
have drawn from its traffic.
NO MARKET VALUE FOR THE STOCKS.
The capital stock OF the company is S5O,-
000 Ithas had no market value for several
years Mr.. George Parsons Of New York is the
largest stockholder. The Indebtedness OF
the road outside Of its bonds is not very
large.
The City aud SGrbuban put in very
| expensive electric power plant last summer.
1t Is the largest and without doubt the best
In the CITY and probably In this section.
Nothing has been paid Oh this plant and it
Is still owned by the contractor, l.. ii. Nc
Intire of New York.
The ground upon which the plant is
located at the old Coast Line depot is also
owned by Mr.. MCIntire.
The Savannah, Thunderbolt and Isle Of
Hope railway, formerly the old Coast Line,
is not the property Of tue City and Sub
urban railway, but is leased by it, and the
two are operated together.
The Coast Line or, as it is now called,
the Savannah, Thunderbolt and Isle Of
Hope railway is owned by Mr.. }. II. Par
sons Of Savannah, the son Of Mr.. George
Parsons.
The situation In City and Suburban
affairs appears to be rather complicated,
but it is likely that some arrangement wi /
be made which will protect the Interests of
the bondhOlders and allow the operation of
the road to be continued as at present.
One Of the provisions Of the mortgage
by which the bonds are secured is that in
case OF default the company is allowed
sixty days for payment, and no steps can be
taken to proceed against the road until the
expiration of that time