The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-06-12
WILL HUSTLE FOR ITSELF.
TYBEE RAILROAD BONDHOLDERS
WILL NOT GO INTO THE RE
ORGANIZATION.


They Refuse Ia Accept the PROPOSE
ton of the Reorganization Com
mIttee as They Claim IL Would
Give Them a Security of no Value
for One That Is worth "a Little
Something. at Least-The Bond-
holders Have Had a Proposition
From Another Line-They VIII
Likely ForecIOse Their own Mort
gage.
The bondholders Of the Savannah and
Atlantic railroad. otherwise known as the
Tybee railroad at meeting held yester-
day at the National Bank of Savannah.
decided not TO accept the proposition Of
fered them by the Central railroad reor-
ganizatiou committee. and they will with
draw their road and operate it indepen-
IDENTIFY
There We're $4,000 Of the $4,000 first
mortgage bonds on the property. repre-
scented at the meeting. This included only
the bonds held in Savannah. and all but
one OF the bondholders were present. The
other bonds on the road are owned north
and their holders will. OF course, be mott
fled Of the action taken. when It is believed
they viii concur in the action Of the meet
ing.
After considerable discussion of the pro-
position made by the committee, the bond
holders adopted a resolution that was brief
and to the point. 1t said simply:
Resolved, That we do not accept the
offer made by the Reorganization commit
tee"
Every bondholder present, with one ex-
ception. voted for the resolution, and the
dissenting voter held only a small num-
Der of the bonds. Ii is believed that the
resolution will be indorsed by those of the
bondholders who were not present al the
meeting.
I'VE concluded not TO accept the propo-
sition of the reorganization committee"
one of the bondholders said. 1--WE prefer to
get possession Of the road. which we ex-
pect to do. We do not think that the COM
mittee has offered US securities of any
value, or they are of such uncertain value
that we do not care to accept them. We
will probably foreclose the first mortgage
on the property in order to acquire a legal
title to 1t.
The reorganization committee offers US
par in second preference income bonds for
our bonds. Our present bonds are a first
lien on the road, but under the reorganiZa-
ton plan the first preference income
bonds are made a first lien on our property,
while we are given only second lien 1t
Is estimated by those who have looked into
the matter that the second incomes will be
worth about 20. which. with the $4,000 of
receivers certificates on the property,
would make only $4,000 for the road Then
too, II is not considered that these bonds
will bear any interest within five years, if
they do within that time.
The mortgage on the Tybee railroad
includes the rolling stock The road owns
two good engines and about eighteen
cars, besides a splendid terminal with
about seven acres of land at its depot
site. The property would make fine ter
minal for any one of the roads which
are now endeavoring to secure their own
terminals here. There is no question
about the Macon and Dublin and the Sa-
vannah, Americas and Montgomery be-
ing extended into the city But there are
other roads that might want it besides
these We have already been approached
with reference to a disposition of the
property, and believe we could do far
better with 1t either by taking it and
-dlsposing of 1t to another corporation or
by operating it ourselves 1t would make
me property for a road seeking termi-
nal Facilities, as 1t would afford access to
water front where plenty of depth can
be secured, and which would not be con-
roIled by any other railroad"
Ihere has been some little dissatisfac-
ton among the bondholders, too. on ac-
count OF their belief that the property has
nor Deen properly managed and9with a
suiHcleht regard for economy.