The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-04-27
JUDGE HARpEN,s PLAN
The Call as He Read 1t at the Deben.
ture Holders Meeting.

The plan of action suggested by Judge
William d. Harden to the holders of GER
tifcates of Indebtedness of the Central
railroad, as well as the holders Of other
unprotected securities, contains some in
teresting features,
There have been several requests for it
in full and it is published herewith. The
principal objection made 10 the other
plan by Judge Harden was that it cut
lined no plan for the committee which
Harden's plan is as follows:
o the oIders of Umpire. ected Securities of
the Central Railroad: a he interests OF the un-
secured creditors Of the Central Railr and
Banking Company OF Georgia are in serious
peril and 1t tehooves them 10 a>t promptly,
tremendously, and together. he hol ELS OF
the per cent ,ertih eateS of inGe tedness-
holders Of Endorsed or guaranteed uonds,
stockholders Of the Central Augusta ana "a
vannGh and southeastern railroads have a
common interest in pre- enting The sacriu,e
OF the property by the enforced sale unGer an
order of court. IL is believed that such
sale can re postponed until the various
junior securities have an opYor-
tunity of protecting themselves provided
that each class of junior security holders
call meeting OF SUE b class to re convened
as early DAY as posi- lie and at such meet
ing appoint q protective committee Of say.
Z ~ q. II ~
hve representing distinct. but not necessarily
cen letting interests should meet together as
general protective committee aud appoint
from their numuer a special executive com
mittee OF, say one from each interest which
should act under the supervision or ana lie
accoInta lie o. the general committee. II the
general committee lie overned ny the prin-
clIle OF mutual concession for mutual pro
lection 1t would seem likely that proper
tlonate value OF the respective securities
could re agreed on. at least, approximately,
na
as to any course to he pun, ued for
the general benedt of all. Questions OF prior
ties and actual values ould be ADJ sted after
the property is saYed-bUt save their DroD-
erty hrst. and be united in that point A COM
mittee representing ma orlty OF he Junior
securities of all classes would have very reat
lnhuenee with any one who desired TO pre-
pare pan OF reorganization, ana would re.
Ceive very great consideration from the court:
because, m tnifestly, those who are the hold
ers OF the protected securities and who
are beyond the possibility of loss
whether the system lie ven or UaIIy
managed, are not the ones who should control
the management but those unprotected
junior security holders who will lose all il
the system be not managed with extraordi-
nary ability and skill sholld have such on
ttol, and II they can agree to act as a unit
they will most assuredly get it, and the court
Will do nothing, and allow nothing to be
done to needlessly inJure their interests
Without discussing the past condition of
the system or the causes which leu to 1t, tho
A
| very much etter condition. physiC ally and
| financially, than ttwas a year ago; the system
seems to be once more on IN upward trend
| toward prosperity, Under good manage
| ment, the lonser a sale is postponed, the bet
| ter it will be for the unprote ted interests.
The holders OF The trlpartite tOndS are
surely not foreelosiug merely 10 get their
money. Their d0St IS as Il sOlutey safe as
| any deOt can be. and is drawing per cent. on
| 10th the bonds and the unpaid coupons
| Those moving in the foreclosure do not need
IA hpn xybN do Vnar To .I,.e .
| Quite possibly to buy in the property at half,
orless than half, lis real value, at forced sale
reorganize. and make profit in comparison
| with which percentum tecOmes lnsgnll-
cant. This would utterly destro, the unpro-
tected securities. and it IS this which we have
to fear.
his can be avoided in either of two ways;
the court may, upon proper presentation of
the case. stlll further postpone the sale, thus
giving the system a chance to still further re-
cuperate, thereby benehting junior securities
without tnjuring the others; or the court
might authorize the issue of'Tel eiver's certid-
Gates, bearing per cent. interest and with
their proceeds the protected deuts could be
paid in full, at a saving TO the system OF . per
cent per annum on the whole protected DEBT
he system thus freed from the pressure now
so inJurlousl7 Affecting it, and from 50 large a
proportion of its fixed charges would stil
| further improve in value, and lie in a mu IN
more favorable condition to invite successful
reOrl anization.
What is herein contained is merely sug-
ma. adoIt 1t or not. If any better course can
De Indicated, the suggesters of this circular
will lie among the st 10 adopt 1t. Their
object is to stop the long continued inactivity
OF the unprotected creditors, which if con
tinued, will be fatal; and to induce prompt
and harmonious action in common cause
action on the line herein suggested or other
wise, as the meetings may prefer.
The signers OF this circular teing holders of
the 8 per cent certificates of Indebtedness,
while addressing this circular to whom it
may concern. are acting only as such holders
and inclose proxies which it is hoped will tie
signed and sent TO some one in whose iudg-
ment the signer has full confidence. and who
will report the same to either OF the under
signed. 1t is hoped that all who agree in the
main idea Of harmony Of action. with
out reference to the suggested details,
will promptly sign the Proxies, whether
they will or will not attend any
meeting the slgner pres ence being a can
collation. OF the proxy-that il may be known
If a sufficient number of holders approve the
method suggested. or the general idea TO
make it worth while to call meeting II a
meeting is called, it Will be advertised in the
Savannah papers, and notice mailed TO out
of-town sgners. Ali debenture holders. with
out reference 10 the amount held, are earn
estly invit ed to co operate. No one Will be
bound by the action of such meeting unless he
may so elect