The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-08-29
WANTS A SMALLER ISSUE.
RumOrS Of DiSSenSiOl Among the
Electric Railway BORdhOIderS.

The Savannah Street Railway People
May Be Asked to Shrink Their
HoldinEs-Reasons Why The Deal
Between the Electric Railway and
the Belt Line Has Never Been En-
tirely Closed Up-The Terms Upon
Which the Deal was Made - Inter
est in the Hearing Before Judge Fall
ligant Next Saturday.
There wih~Fe much interest in the hear
ing Of the petition for the appointment Of
a receiver for the Electric railway before
Judge Falligant Saturday morning at 10
o'clock. The petition will be opposed by
the officers and directors Of the Electric
Railway Company
President Collins said yesterday that
the Electric Railway Company would
certainly oppose the appointment Of a re-
ceiver and would show to the court if
necessary that the company is a perfectly
solvent corporation.
I'VE do not want a receiver, even if we
are allowed the naming of the receiver
ourselves, 81 said Mr. Collins. "Theaffairs
of the company can be managed very well
without the appointment of a receiver"
REPORTED DISAGREEMENT.
In connection with the attempt to place
the Electric railway in the hands of re-
Ceiver an old rumOr has been revived to
the effect that serious disagreement ex-
lists between the original Electric railway
people and the bOndhOlders of the old
Savannah Street railway, which was CON
sOlidated with the Electric railway
several months ago. There are reported
to be two points of disagreement between
the two parties interested in the consOli-
dated company. 1t is said that the work
of consolidation has never been entirely
completed.
A difference of opinion has developed
between the two parties of boudholdcrs
as to the division of bonds agreed upon in
the consolidation. Some of the Electric
railway people, it is understood, claim
that the earning capacity of the Belt line
Is not as great as 1t was represented to
them At the time of the consolidation, and
that in consequence there should be a re-
distribution of bonds agreed upon.
WHAT THEY WANT DONE.
They demand, it is said, that the SI25,-
600 of second mortgage bonds allowed the
Belt Line people under the consolidation
be wiped out, and that the $3.50. coo of un-
DERIVING bonds allotted to them be re-
duced 10 sl5O,O0O at per cent, instead Of
q per cent as at present In return the
Electric railway people. il is said offer TO
wipe out the Sl5uOO0 of second mortgage
bonds allotted to them in the deal, and to
accept a reduction of the interest on their
$3.50 900 original e per cent. bonds to per
cent.
They base this demand upon the claim
that the earning power of the original
Electric railway line, the Price street
belt, is much greater than that of the
outside belt, and the Barnard street line,
which formerly composed the Savannah
Street Railway. Whether this PROPOSE
ton has been made in the shape of a de-
mand, or merely as pointed suggestion !
Is not known, but it is undoubtedly true
that this idea has been advanced BY
members Of the Electric railway board |
of directors.
Mr.. I. w. Wrepne, one Of the directors
OF the Electric Railway Company, and
formerly of the Savannah Street Railway
Company, who conducted the deal for the
latter as the representative of the Nash
Vile bondholders, is expected in the city
shortly TO confer with both sides upon the
situation with the hope of bringing about
an agreement.
SOME OLD DEBTS UNPAID.
Another point Of difference is the in
debtedness of the old Savannah Street
railway Company, amounting to about
$4,000, which this company agreed to
pay. The Savannah Street Railway peo-
pie, II is claimed, have never paid up this
Indebtedness. An ample personal bond
was given to insure its payment. and Sc
curitles largely in excess of the amount
deposited 10 guarantee the payment
Inc amount has never been paid how
ever, and the Electric railway people
claim that this is another Thing which
stands IN the way of completing the con-
solidatlOn. While they have no doubt.
they say, the amount will be ultimately
paid. they say that the consolidated prop
erty would be liable for the amount and
could be proceeded against by these
creditors, which might result in very un-
desirable complications.
On AN EVEN BASIS.
The deal between the Electric railway
and the Savannah Street railway was
made upon very nearly even basis The
bonded Indebtedness Of each company was
S25o,OOO, at per cent. per annum. These
were retained as first mortgage bonds of
the new company TO be taken up at
their maturity by consolidated mort
gage bonds. in addition S3OJ,O0O of
second mortgage or consolidated bonds
were TO be issued, of which the
Savannah Real Estate Loan and Build
ing Company, the owner of the Electric
railway, was to receive $3.50 COO, ana the
savannah street railway people SIPS O0O
ana S%o,uO0 was 10 go into the treasury of
the consolidated company The interest
on the consolidated bonds does not begin
until April next, so that it is only The
hrst mortgage bonds which have to be
provided for now.
There was also an issue of $500 600 of
stock by the new company. of which the
real estate company received $500, 900, the
bondholders of the Savannah Street rail
way s26O,00O and $50, 600 10 20 into the
treasury Of the company The stock has
no value beyond the voting power. In ad-
dltlon to this the new company assumed
$4,000 OF debts of the real estate company
and $4,000 of the Savannah Street Rail
way Company About $4,000 more was
expended in the purchase of new cars and
providing additional shed room ana equip
ment at the power house, making handi-
cap of 100000 under which the consoli-
dated company began business
NE HOPES FOR HARMONY.
President Collins was asked Yesterday
by MORNING News reporter what foun-
datlon there was for the report that a
serious difference existed between the
two sets Of bondholders Of the company
aud that demand had been made by the
original bondholoers of the Electric rail-
way that the Savannah street railway
bondholders shrink their holdings.
President Collins was not inclined TO
discuss the subject, but admitted that he