The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-08-07
THE SALE MAY Be STOPPED
4 Stakeholder Of The Middle Georgia
and Atlantic Who Objects TO It.

put Jill ANS - ~ l~1AAN inc
Roads Securities, Consisting of
$4,000 Per Mile in First Mortgage
Bonds, VIII Probably Be Bought in
by the Rolders Of the Syndicate
Loan for the Amount of This In
debtedness, the Effect OF Which VIII
Be to wipe Out An the Stock.
The anticipated sale of the Middle
Georeia and Atlantic railroad on the
steps Of the court house this morning be
tween the legal hours Of sale may not
come OF. at least not for several days vet.
II win hardly be definitely known. how
ever. whether the sale viii be stopped
until about time forit TO take place.
Mr. A. O. Granger Of Philadelphia, q
large stakeholder in the property, is in
the city. and it is said he viii endeavor TO
stop the sale Of the roads securities. He
has employed Messrs. Erwin, duBignon
SChisholm. and It is believed the method
of procedure will be TO secure o tempo
rary injunction from the state courts to
prevent the sale.
WHY re WANTS TT STOPPED.
Mr. Granger, It is said, is the owner Of
about sol 900 Of the capital stock of this
road. but Is not interested in the syndi-
cate loan. The fact that the saleis likely
to shut out the stock altogether makes il
the desire of those who own common
stock alone to have the road bring more
than the amount Of the syndicate loan,
and it is believed this is the reason the
effort TO stop the sale viii be made
The road is forty-f0ur miles Ia length
M"HW 80
Part of il between MaCheu and Eat0nton
was bought By the Seaboard company.
and Sl75 900 was borrowed from a syndi-
cate at : per cent 10 complete the line be
tween COvington and EatOntOn. This
debt fell due Jan. l. 1894 but was not
paid. As is well known President =. p.
Williams made several efforts 10 secure an
extension of the loan, believing in time
the amount could be paid. While parties
representing 100000 Of the loan were
willing 20 consent 20 an extension those
representing the other SI5, 600 were op-
posed to il. and a committee was ap-
pointed to take charge Of the matter.
Mr. J. D Weed was made chairman and
Mr.. Herman Myers vice chairman. This
objection made the desired extension in
possible Messrs Garrard, Meldrim q
Newman were employed to do the neces-
sary legal work IN connection with the
collection OF the debt.
AHEAvY INvEsTNEST.
The road was bonded at $4,000 per
mile These bonds, amounting In all TO
S792. 900, cover the entire property, road
bed, track, rolling stock and real estate,
and the whole property was pledged 10 Sc
cure this syndicate loan. Besides the
syndicate loan $3.50, 900 Of stock was put
into the property. Many Of the stock
holders think. however, that the eXpendi-
ture Of sabout 10000 here, and $4,000 of
the amount paid ont in the first place,
was entirely useless. II can be seen that
about S457 600 was put into the property,
and large part of the stock was sub
scribed in Savannah.
An extension of the loan for few
months was had in order 10 see If money
could not DO raised 70 pay on that part of
the loan which stood 10 the way of
longer extension, but this was found i'm
possible.
TO BID IT IN FOR THE LOAN.
The first mortgage bonds which were
issued are now IN the hands of the trustee.
the Oglethorpe Savings and Trust Com
pany. These are the securities which
viii be offered for sale to-day about II
O'Clock by AuctiOneer J. Mclaughlin.
The bonds bear 3 per cent. They cover
the entire property, all Of which is
pledged for this syndicate loan.
WI D ~ ~ D1A DbAAE Ab0EAAs WI. IlGT-
man Myers, vice chairman, viii probably
represent the committee at the sale. and
make the bid for the securities. Ii IS IN
derstOod that about $l8S, 600 Of the syndi-
cate loan is pooled here and the commit
tee has everything its own way The
road if sold this morning will, therefore,
be bid in for the amount Of the loan.
which, with interests and costs. amounts
now TO $4,000, ana the stock viii be
wiped out
THE STOCK ALONE CUTS 40 FIGURE
The bonds, Of course, sold at this figure
will be divided prorata among the hold
ers of the loan, 80 IL can be seen that a
party holding stock and enough Of the
syndicate loan scrip 10 cover IL, is prao-
tically safe II is understood that MIR
Granger has endeavored 10 obtain some Of
this scrip 10 cover his stock, but being
unable 70 DO 50 at his figure he desires to
stop the sale.
The bonded debt is. Of course. much
heavier than the road 10 its present con-
ditiOn could bear, but IL was put at SIS
600 per mile on the idea that it was n be
built between Chattanooga and Savan-
nah IN its present condition half that
amount would probably be about all il
could bear. II is considered that about
$4,000 would be o good price for the
property, so that, Il bought for the
amount Of the loan, il viii be obtained at
a comparatively low figure The road for
the past nine months has earned only a
little more than enough 10 pay the car
trust notes and expenses Of keeping the
roadbed in a good condition, and 1t is
doubtful if, for the next few months. il
would be able 70 pay the interest on the
syndicate loan
NONE OF THE RAILROADS WANTED IT.
An effort was made, 10 is understood. Ia
get a bidder who would buy the road al
an amount which would pay the stock
holders something, but none of the rail
roads in whose territory II runs were
willing TO take IL. Il Is in a section which
Is well covered by railroads, and, while
not exactly paralleled by any Of them, il
would require a good Development OF the
country through which IL runs 10 make II
pay.
II remains TO be seen, however, whether
the sale will take place to-day. II is be
hoved the effort will be made To prevent
il, but whether il win be successful OIL
not may depend on the showing that car
be made. Mr. Granger il is understood
is a stakeholder in the Seaboard COMPANY
by virtue of his interest in that portion
OF the road which was bought by tina
company.
NONE OF THEM WANT 1T.
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