The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-08-19
GEORGIA PACIFIC SOLD.
It Falls Under the Hammer Into the
Lap of the Southern.

It Falls Under the Hammer Into the
Lap of the Southern.
Atlanta, Ca. Aug. 1S-The Georgia
Pacific, with 375 miles Of track, fell into
the lap Of the Southern Railway Com
pany to-day on the bid Of Mr.. c. H. Cos
ter. the representative Of Drexel. Morgan
& Co. acting under the reorganization
scheme being perfected by that concern.
who offered $500, 900 even, that being the
minimum amount at which the property
could be sold under the order of the court
and deposited a certified check for $50, 900
as a guarantee of good faith.
Judge Newman of the United States
court for the Northern district of Georgia
confirmed the sale shortly after Mr.,
Carriers bid was accepted. Judges Niles
and Bruce Of Alabama will be applied 10
for confirmation Monday, and on Sept. l
the Southern will take actual charge Of
the acquisition. A furry was created be-
fore the sale by the report that the Sea
board Air Line had determined to scoop
in the Georgia Pacific and would Out-bid
the Southern, but this report did not ma
terialize in fact, the only offer being that
of Mr. Carter.
The sale brought together a large
crowd of railroad men, among them
party of the most prominent managers in
Uhe south. President Samuel Spencer Of
the Southern, Vice Presidents Anderson
and Baldwin, General Managers Green
and Hudson were on the ground, and Mr..
Henry Crawford the railroad lawyer, who
has played a leading hand in the SOnth
ern railway situation during the past
three years, was also on hand. Mr.. Stet-
son, general counsel for the Southern,
was present with President Spencer and
his party.
The acquisition Of the Georgia Pacific
Is the last link in the Southern's big
l,oF,, 70 ,1ane havra
tured. IL is a very important factor in
the system. The completion of the reor-
ganizatlon scheme by which the Southern
restores these badly demoralized rail-
way properties to a solvent basis cannot
fail to have a good effect. The Georgia
Pacific property sold to-day comprises
the main line from Atlanta TO Birmlng-
ham, 167 miles; the line from Birming-
ham to Columbus, Miss, 124 miles; a
number OF branch lines in both Alabama
and Mississippi and the belt lines connect
ing with the Richmond and Danville in
Atlanta, with all terminal facilities, side
tracks, etc, making total of 975 45-100
miles of track.
In addition to this is the extension
from Columbus, Miss, 10 townsville,
Miss, 40 miles, and also from Arkansas
City to Gonada, seventy-ive miles.
In announcing the conditions Of the
sale, E. A. Angler, the commissioner act
Ing Sdlu bQG TOdu WOulu DC sofa as an
entirety and in one parcel without valua-
ton, appraisement, redemption or extern
sion, and subject to first mortgage to
the Central Trust Company of New York,
trustee, dated May 6, 1882, and to a mort
gage to the Metropolitan Trust Company,
trustee, dated Oct. l, 1888, so far as they
are liens upon any part Of the property
above described, and subject to two
equipment mortgages to the Central
Trust Company of New York, trus-
tee, dated respectively July II,
1889, and May !, 1881, upon so
much of the property as is described in
said two equipment mortgages"
Col. Wa WiHbish, special attorney
for the state in the Western and Atlantic
railroad litigation, and before the sale, on
behalf of the state, put the purchasers on
notice that the Georgia Pacific had no
legal right to the right-of-way into the
city of Atlanta, nor to the union depot,
which is the property Of the state road,
and Mr.. Wimbish put the purchasers on
notice that tLey could only get this right
of-way from the lessees of the state road.
The Southern people were notified, and
accepted this notice, also the other con-
dition as to interventions.
There win probably be some changes in
the operating department of the Georgia
Pacific, but they will not be made known
until the Southern takes charge on Sept.
THE ASSOCIATED PRESS ACCOUNT.
Atlanta, Ca, Aug, 1S.-The Georgia
Pacific railroad was bought to-day by c..
H. Coster of the Drexel-Morgan Com
pany. There was only one bidder and
one bid-S500, 900.
The Georgia Pacific extends from At
lanta, through Birmingham to Green
vile on the Mississippi river It's mile
age is about 600 miles. This sale was I'M
der a mortgage made May 6, 1882, the
Central Trust Company of New York
trustee, and other parties being inter
ested. The Georgia Pacific was one of
the Richmond Terminal Company's prop
critics and was operated by the Richmond
and Danville railroad.
In common with the other Richmond
Terminal lines, the Georgia Pacific was
thrown into a receivership two years
ago. II was reported early this morning
that the Seaboard Air Line Company
would be bidder for the Georgia Paci-
nc, and the gossip seemed to worry the.
Southern company's officials and law
yers.
Among those at the sale were Samuel
Spencer, president of the Southern;
Henry Crawford and MIR. Stetson of New
York and General Manager Green Of the
Southern's eastern division.
Mr.. Coster put up the $4,000 guarantee
as the auctioneer mounted a barrel at the
freight depot where the sale was con-
Quoted. No other deposit was made, and
MIR. Stetson suggested to the auctioneer
that under the terms of the sale no bid
could be accepted except after a deposit
had been made.
The sale was quickly over, and the
Georgia Pacific passed into the Southern
railway system.
JUBILANT DEMOCRATS.