The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-06-25
NO DOUBT ABOUT The PLAN.
PLENTY OF MONEY BACK OF IT
AND THE BONDS ALL SUI
SCRIBED To.

ried About the Savannah and W est
ern-The SOuthern's New Purchases
and Its Control of the Central
Form Part of a Big Movement 10
stop Rate Cutting-The Association
VIII BE Continued.
Mr.. Thomas Z. Ryan. who is associated
with Gen. Samuel Thomas in the work on
the Central railroads plan of reorgaiza-
tion. will probably come to Savannah with
in a week or ten days on a business trip in
connection with the work which he now
has in hand. He announced this as his in
tention to Receiver II. NJ. Conner, who're
turned from New York yesterday morning
Besides giving his attention to several
matters in connection with the property.
Mr. Ryan said he would probably take
trip over the Savannah and Atlantic or
Tybee railroad. while here. and see If the
property is worth any more than has been
offered the first mortgage bondholders by
the reorganization committee
The committee as is well known, offers
these bondholders par in second prefer
ence income bonds, but makes the first
preference income bonds a first lien on
the property The committee further
agreed, however. to pay Off the receivers
certificates on the property. and the in
debtedness claimed against IL by the Cen
trail railroad.
The Tybee railroad bondholders, at re-
cent meeting, refused to accept the offer of
the committee, and this may be a good
opportunity for them TO show, IL they can
do so, that the property is worth more tos
the system than the committee has seen
tit 10 offer Further than this the com
mittee has said nothing with regard TO the
action of the bondhOlders OF this road.
1.-THE securities are being deposited with
the Mercantile Trust Company very rap
Idly" Receiver Conner said. IAN classes
of them are being received very freely with
the exception Of the Savannah and Yves
tern, the Chattanooga, Rome and Column
bus. and the Savannah and Atlantic
bonds"
There has been some correspondence"
Mr.. Conner said, between the reorgani-
cation committee and the Macon and
Northern railroad bondholders, Mr.. Alex
ander Brown of Baltimore being the larg-
est holder of these bonds, and / have no
doubt from what has taken place, that
they win accept the offer made by the com
mittee and come into the plan.
THE committee does not seem to be wor-
rying about the action of the Savannah
and Western bondholders," Mr.. Conner
said in answer to a question, but is go
ing right ahead with The reorganization of
the other properties, and think will get in
sufficient securities by July l for il to 20
ahead with the work. The contract of the
Mercantile Trust Company provides that
the plan shall be declared operative Just
as soon as 81 per cent. of the triparite
bond certificates of Indebtedness and mi
nority stock have been deposited with
the trustee"
1t is understood that the committee al
ready has a majority, not only of the
tripartite bonds, but also of the Mobile
and Girard and Montgomery and Eufaula
railroad bonds on deposit, and that prac-
ucally all OF them have agreed to the plan
The reorganization committee" Mr.
Conner said, assured me that the plan is
backed with all the money necessary TO
put ii through. and that the $4,000, goo of
bonds contemplated under the plan have
already been subscribed for"
viii the Savannah and Western make
any active opposition to the plan?" Re
eeiver Conner was asked.
Il was informed by parties promi-
nently interested in the Savannah and
Western bonds" Mr. Conner said. chat
the Savannah and Western would not ac-
cept the terms proposed by the committee.
They stated further, however, that the
committee would not offer any opposition
TO the plan so far as 1t concerns the re-
organization of the other properties"
Have you heard anything of a pro-
posed organization on the part of the pros
pective income bondholders?" Mr.. Conner
was asked.
mo, have heard no talk of any such
action being taken he replied. 1T will be
time enough for them to organize for
their protection when there in danger of
anything wrong taking place. There is
no use IN making threats until something
frafa f1 40
bic to happen, l have heard expressions
from several who are interested in the
plan only as security holders of the prop
erty, and they all seem very well satisfied
with what has been done"
Receiver Conner spoke of the fact that
there has been a rise in railroad securi-
ties Of almost all classes in the last week
or ten days. Central railroad securities
along with others, have been decidedly on
the upward trend
There seems to be generally a better
feeling all around" he said, "and there
are perhaps other causes to which the rise
may also be attributed. The movement on
the part of some of the large railroad
systems to stop all the rate cutting may
have something TO do with it,"
Mr.. Conner was asked if he heard any
thing of the proposed combination of the
big railroad systems of the south, a report
With regard to which was published in the
Morning News a day or two ago.
mo, l have not" he replied, but eff
forts are now being made all with a view
to stopping the reckless cutting of rates
that has been going on, and the giving of
secret rebates, and nobody will be dis
satisfied with what is done except those
who have been getting the advantage OF
their neighbors by these means.
The purchase by the Southern Railway
Company Of the Georgia Southern and
Florida railroad, its control of the Cen
trail, together with it's other movements
will give it a new inlet into Florida, and
will have the advantage of bringing about
a steadiness of rates. This by no means
signifies that there is to be any war upon
other lines any advance of rates or any
extortionate charges, but the idea is tC
give the public better service, a fair an6
legitimate system of rates, and to do away
with rate cutting and the giving of seere
rebates. This should be Of benefit to tn,
entire country. Under such a system bus
mess will flow in it's proper and natura
channels, and the public will have a bet
ter service at a less cost to the transpor
tation lines.
Il think that the Southern Railway anC
Steamship A Association will he cOntinua9