The morning news., 1894-04-19
TRYING TO GET CONTROL.
The Electric Railway Said to Be After
the Brush Company.

tlt DIuSH UUlllpdllJ'
The Holders of Electric Railway
Bonds Asked to Release the Brush
Company Stock Acquired in the Con
solidation of the Two PIants-Presi-
dent Collins Denies There Is Any
Movement to Secure Control of the
Lighting Company, But Says the
Railway Wants the Brush Stock as
an Unenoumbered Asset-Talk of
Protest.
There is a rumor that the Electric rail
way people, or the Savannah Real Estate
Loan and Building Company are endeav-
! orlng to secure control of the Brush Elec-
trio Light and Power Company.
The rumor is denied, however, by both
President Collins of the Electric railway
and of the Land and Building Company,
and President Hamilton of the Brush
Company
"Well, that's the first have heard of
it, said DR.. Collins, when approached on
the subject. you can state positively
that the report is untrue. There has
been no such move made, neither have we
thought of such q thing BY the terms of
the deal by which our lighting plant was
consolidated with that of the Brush
company, we received ,250 shares of the
latter Company's stock, which is now in
our treasury. We have purchased only
one share of the brush Companys stock
since, and that was when we were under
the impression that each director was
compelled to own stock Individually in
order to qualify as director. Mr.. W. X.
Wilkinson, MIR. w. w. Mackall and N.Y.
self were elected directors of the brush
company when consolidation was made.
We started out to purchase share
Of stock apiece in order to qualify as
directors, but found after we had pur-
chased one share that this was unneces- /
sary. We have made no attempt to pur-
chase any of the stock since"
WANTS THE STOCK RELEASED.
Mr.. Collins was asked about the report
that the Electric Railway Company is
seeking to have its Brush company
stocks released from certain obligations,
in order that it may be used as collateral
in the purchase of a controlling interest
in the Brush company.
THE 1880 shares of Brush Electric
Light stock, which was received when
the consolidation was made" Mr.. Collins
replied, "were made subject to our new
first mortgage bonds. Desiring to make
this an available asset for any purpose
that might arise, we are endeavoring to
have it released from its obligations under
the mortgage. That we should seek to
release this stock with which to pur-
chase more stock of the same kind is not
likely"
President Hamilton, of the Brush Com
pany, said the report that the Electric
Company is trying to scoop the Brush
Company was news to him.
AS president and secretary of the com
| pany," he said, 81 know that there has
hanD ctnpLr traOsfapFad ;.b+
be purchased without being transferred
at once, but no sales have been made that
| know of, and l would have been very
likely to have heard of it if there had
been"
THE BRUSH CoMPANY's STOCK.
There are $3.50 shares of the Brush
Electric Light and Power Company, said
President Hamilton, of which 1850 are
held by the Electric Railway Company
This stock was issued to the railway and
land company people when the deal was
made consolidating the two plants. The
railway and land company would have TO
| purchase 626 shares to secure the con-
| trolling interest AS the stock is now
| quoted at S55 to $50 share, this would
require about S36, GOO. The question has
been asked, what security will the first
mortgage bondholders have other than
| the railway if the stock of the Brush
company is relea sed2
| There is some curiosity to know what
use the Electric railway people intend to
make of the electric light stock which it
| has been endeavoring to secure the CON
! sent of the bondholders to release. A
! gentleman who seemed to be on the inside
! informed MORNING NEWS reporter that
when President Collins circulated
! petition among the bondholders to the
! trust company requesting the release Of
! the stock that he stated that it was for
/ Hlr,r -.
| cure money TO purchase more of the stock
| There may have been a misunderstanding
! about this, however.
SALE OF THE MACHINERY.
! When the Electric Railway COMPANY
sold its lighting plant to the Brush com
pany, receiving in payment 1926 900 in
| stock of the latter company, it expected
to make deal with the City and Subur-
ban railway which would put them in con-
troll of the power plant of that company.
This would have given it all the power il
| could use. The deal fell through.
| however, and the Electric railway
found itself short on power. This
made 1t necessary to buy back some
of the machinery that had been sold to
the Brush company. The result was
that the Electric Railway Company con-
tracted a considerable debt with the
| Brush company which is said to have
/ remained unpaid up TO q recent date. II
may have been for the purpose of settling
this account that President Collins de-
sired TO secure the release Of the Brush
| company's stock held in trust for the first
mortgage bonds of the Electric railway. AS
the lightning plant of the Electric rail-
way, was subject to the first mortgage
| bonds of that company the stock which
was received IN payment for it also be-
came subject to the mortgage and cannot
be released without consent of the bond
| holders. 1t is said that some of the bond
holders have filed protest against the
release of the stock.
Savannah, Ga, April II, 1s04-Messrs.
j. +. Brooks & Fripps, Agents New YORK;