The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-03-26
TROUBLES OF THE ELECTRIC.
sy STOCK TO BE USED To PUT
bH, ms COMPANY ON IT'S FEET.


Ice speer Practically Consents to
plan for the REORGANIZATION
rehabilitation of the Proper
I'm order Signed I'm the United
-..,es Court at Macon on March IL
occurring the Receivers 10 An
the Pevear Prayer-They
JARED Granting His Petition.
n ,,,,on. March 2.-Newspaper men were
. u..r.bat surprised to-day to find that an
-zs- had been signed in the United States
-..-- m March Il requiring the receivers
.bs savannah Street Railway Company
. ~ The Electric Railway Company of Sa-
--,sb 10 show cause why the prayer of
Pevear for reorganization or reha-
,tr,srion should not be granted. The mat
~ had been kept a profound secret The
-.,,rs we're not filed in order that the
liter might be kept out of the newspa-
,ers The hearing was had in the United
STATES court to-day.
The story will be news to the Savannah
-ublc. The answers to the application
f,r authority TO reorganize were filed this
morning and the case was called at once.
The defendant companies had entered
,nto an agreement with very large pro-
norton of their creditors for a reorgani-
cation and rehabilitation of their proper
lies at the time Of the filing of the petition
for a receivership. BY this means they
purposed to largely reduce their fixed
charges and put the properties upon a
solvent and profitable basis. The proper
lies are now in the hands of receivers Of
the United States court. The bill itself
does not contemplate an immediate fore
closure of the bonds, to protect which it
was filed. It is a bill to foreclose for semi
annual interest overdue and was filed to
nrotect the security of the bondholders un-
IN the companies themselves could be
ulaced upon a solvent basis and the Sc
curity made good.
The defendant companies have petit
toned the court to allow them to dis
pose of a number of shares of stock in
the Brush Electric Light Company, which
shares Of stock have been pledged with
the trustee to secure bonds of the highest
dignity upon the Electric railway of Sa-
vannah. All the bondholders Of this class
assent to the application. BY using this
stock, it is claimed that the properties
can be rehabilitated, and to this nobody
made objection before the court. The
court ruled the receivers to show cause
why the leave should not be granted
Instead of showing such cause, the re-
Ceiyers strongly recommended the dis
position sought by the defendant compa>
mics The complainant also Joined in the
application, IL being understood that his
bonds shall retain the priority they al
ready possess. Among the creditors dis
sentng from the application are a car
company and a real etate company, who,
the court says, are amply secured by
liens upon the cars and lands furnished
the defendant companies. The real estate
company asents to the plan of rehabila-
ton. There is about 500 worth of indebt-
edness not provided for.
The court construed the application fav-
oraby in view of the character of the
relief sought and in view of the fact that
practically the entire body of creditors
assented to the granting of the applica-
ton. Judge Speer stated that large
number of creditors who have signed
the agreement for reorganization or
which contemplates
the use and pledging of the Brush Elec-
trc Light stock, are not, strictly speaking,
parties before the court, but their agree
ment was in evidence and largely con-
lrolled the decision of the court in grant
ing the defendant companies permission
to utilize an available asset, which might,
and which it seems, will restore solvency.
The assent may in certain contingencies,
said the court be finally subject to the
General creditors, but. the contingency is
% remote and the creditors thus agree
ng to that end, the court can conceive of
10 Improperly in allowing a pledge of
his electric light stock in a manner
which will not only apparently extract the
from It's difficulties, but, at thu
iame time increase the security for such
general creditors as have not entered into
he agreement. The 800 creditor will lose
zone of his rights by permitting the pledge
If this asset. 1t WILL however be pro-
.ided in the decree that $500 worth of
Brush Electric Light stock shall be de-
)osited with the receivers of the court to
provide for the liabilities of the receiv-
,rship and the cost of the administration
IF the properties -