The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-06-07
THE SOUTHERN TO CONTROL IT
IT HAS A MAJORITY or THE GEOR-
GA SOUTHERN AND FLORIDA
BONDS.

The Certificates Representing the
Bonds Bought in Open Market at
Prices Ranging From - 10 96-The
Certificates Carry no Power to AZ
feet Any Act of the ReOrEaniSa-
ton COmmittee-The Southern May
he Allowed To Assume Control n
soon "a IL Desires.
The control Of the Georgia Southern
and Florida railroad by the Southern rail
way Company. which has just been Sc
cured through a purchase Of a majority
Of the certificates representing the bOn1s
which have been deposited with the re-
organization committee. is expected TO
prove decidedly advantageous to the bond
holders Of the property.
1T is true" said Mr.. H. p. Smart.
chairman Of the bondholders' reorganiza-
ton committee when asked about the
matter yesterday. that the Southern has
acquired a controlling interest in the Sc
curides Of the Georgia Southern and
Florida II has purchased something over
81. $1,000 in the certificates, representing
the bonds which have been deposited with
the committee. The old issue Of bonds on
the property amounted to s. 42O,OoO. so It
viii be seen that the Southern has ac-
quired little more than half Of them.
These certificates carry with them IN
der the plan, two shares each OF first
and second preferred and of common
stock for each Of the bonds Of 81 600 So
it Will be seen that they will have con-
troll in the voting power"
How was the control secured?" Mr..
Smart was asked
The Southern bought these certificates
in open market from brokers and others
and has been buying them right along for
the last month or two" Mr.. Smart re-
piled. 1T has been paying for them all
the way from so TO SO, but it was sew
eral weeks ago that the latter figure was
paid"
What is the general opinion with re-
CARDS to the purchaser" was asked.
The bondholders generally are wen
satisfied with the Southern's purchase OF
these bonds, and they believe il will
strengthen the property. This move VIII
put the Southern in control Of a large
amount OF the Florida business bv vyav Of
Palatka, and this business will, of course
De advantageous to the property, ana
consequently to its bondholders NTucn
OF this business has heretofore been done
by the Plant lines and the Central rail-
road"
VIII this purchase OF the majority of
the certificates by the Southern have any
erect on the reorganization plan?'' was
asked
ssrThese cer+f6ca+a-. ,,.ht., A.,
has purchased are merely receiptg for the
bonds Mr.. Smart replied. land carry with
them no power whatever. to affect any
act OF the reorganization committee. The
committee viii go ahead and reorganize
the property with such stocks and bonds
as II sees mt, or in other words. on the
basis that has already been agreed upon
All of the bonds but Sl3 600 have already
been deposited with the committee and
some OF those are I'm sight. The majority
OF them have no objection TO coming into
the plan. The property shows that il can
earn over per cent, with separate man
agement, and with its consolidation with
the Southern. there is no doubt that IL will
earn more. / believe with proper manage
ment it will earn 100000 gross annually
OF course 1t is expected that the Southern
viii manage the property as cheaply. and
economically as anyone could possibly do
II has the facilities and is in position to
do this, and there is little doubt that II
will. The traffic that the Southern win
give the road will greatly benefit it, and
think the bonds will go to par very short
ly."
when will the Southern assume con-
trol?" Mr.. Smart was asked
The annual election of officers" Mr.
Smart said. would have been held on the
third Monday in October 1t may be that
il will be held at that time, when the
Southern will If course aIact tie ov-,, oas
GERS. Notwithstanding this, the company
has no desire to hamper the Southern in
any way by remaining in charge of the
property, if the Southern should wish to
assume control of it,"
Chairman Smart will go to New York
some time next week for the purpose of
comforting with President Samuel Spen,
| Ger of the Southern. When he is con-
| WINGED that the Southern has the con-
! trolling interest in the bonds, he win no
| doubt, as he intimates, agree on the part
of the bondholders for the Southern to
assume control and to manage the prop
! erty.
The new securities under the plan Of
! reorganization Will be issued July / For
each of the old bonds will be given one.
1 of the new issue, 200 first preferred. 9lO
! second preferred and 200 of common stock
! About 100000 Of the new bonds will he
| held by the committee for the purno %
| of paying off the car trust notes amount
ing to about $4,000, lawyers fees of
about 100000 and other pending claims.
/ 1t was believed at one time that Mr.
| Plant would secure control of the Georgia
! Southern. and many here were hoping ,ha
! he would do so, as this would bring a
! large amount of the traffic around by Sa-
Vannah
/ Between $4,000 and 100000 of Georgia
! Southern and Florida bonds have gone out
| of Savannah within the last six weeks
| They were bought through the brokers
here, by brokers in New York, and the
| recent developments make it almost GER
| tain that the Southern has purchased
! them The bonds that went from Savan-
! nah sold all the way from SO TO SO.