The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-01-22
SOON TO Be REBUILT.
Two Contracting Companies Figuring
on the Tybee Railroad.

They Have Agreed to Repair 1t for the
Certifoates-Why Receiver Conner
Did Not Market the Certificates in
New York-He Wants to Issue 49,
600 Additional Certificates on the
Road to Reimburse the Central for
improvements Made and Money
Lost in Operations.
Although no market has as vet been
found for the $4,000 of receivers certif-
Gates TO be issued on the Savannah and
Atlantic railroad for the purpose of re-
constructing that property, it is probable
that some arrangement will be made by
which the work on it viii be commenced
in time to have it ready for summer
travel.
When Receiver Conner returned from
New York he stated that he had not mar
Aeted the certificates, though he would
not say why until he had informed the
bondholders of the road, who had asked
that the certificates be issued.
MIR. Conner recently told the bondholders
why he had been unable TO place the GER
tificates. After getting authority from
the court to issue them he went to New
York, and there consulted with certain
parties with a view to disposing of them.
The first question asked, the usual dues-
ton IN all such cases, was What are the
net earnings of the road7n Mr.. Conner
could only say that there were no net
earnings, and on this account found no
purchasers.
Capt Henry Blum, one of the largest
bondholders Of the property,
believes that it will pay after
it has been rebuilt, and that in some way
or another the funds will easily be raised
fhaea aaYsfi 6pafae with W higb n
the property.
THE PLAN NOW IN VIEW.
1.-THE history Of properties of this kind"
said Capt. Blum yesterday, lis that they
do not do so well at the start, but they
improve as the conditions inducing travel
improve.
after the property is repaired there
are improvements in view on the island
which will be of great value to it, among
which is the construction of the govern
ment fort, for which $500, 600 has already
been appropriated.
"The present plan for the rebuilding of
the property is to let some railroad con-
tractor or contracting company take
the work in hand and do it for
the certificates. Several Of them
have offered to do this, and two are now
figuring on the work. They agreed TO
take the certificates for the work bro
vided they could market them, about
which, l think, there will be no trouble.
This plan of having the property rebuilt
will no doubt be acceptable to all con-
cerned, and when the estimates are in,
think the work will be given 70 one of
these parties, and the work will begin at
once. | entertain no doubt that the road
will be completed in time for the summer
travel.
1T may be-" Capt. Blum continued,
''that the bondholders of the road will
&aNw ~ q
that good plan would be for them to
pool their interests and put in, say 1914
per cent. of their holdings in cash, which
would be sufficient TO do the work"
WANTS $4,000 MORE CERTIFICATES.
Receiver Conner wants to have SIS, 900
additional certificates issued for the pur-
pose of reimbursing the Central for money
spent on the Tybee road, both in improve
ments and deficit of earnings from oper-
ating expenses. This application win
probably be made to the court at
the time the hearing on the question
of issuing Savannah and Western certih-
Gates comes up, which will be March l.
1t is matter similar in many respects
to the petition in the case Of the Sayan-
nah and Western railroad.
Capt Blum would not say whether the
bondholders would take any active steps
TO oppose this petition or not He said
that the Savannah and Atlantic railroad
was the property of the Central, that
road owning all its stock, and that the
question would be as to whether the
owner Of property which was mort
gagged, had the right to make improve
ments on that property or could lose
money by operating it, and then come in
and ask the court for lien on its own
property prior to the first mortgage to
reimburse IL for improvements, or for
money lost through its own opera
tions of the property. In his
opinion, when a corporation lost
money through operating its own
property, or when it improved it that is
the corporations own lookout, and it has
no right to ask for a lien on its own prop
erty prior to that of the first mortgage.
Capt. Blum thinks the outlook for the
property very favorable, and says the
people Of Savannah cannot afford to and
will not see it go to ruin. The prospects
are that the work Of repairing it will be-
gin at an early date