The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-06-09
SATISFIED WITH THE PLAN.
JUDGE HARDEN SAYS 1T Is A CASE
OF HOBsONss CHOICE.

curities Fairly, and II n Fails 10
Go Through for ANY Reason There
VIII Hardly Be AnOther-HOIders
OF Southwestern and Augusta and
Savannah stock Need Not Deposit
Ii With the Trustees-The HoIIfns
Plan Certificates Can BE ExchanE-
ed for Certificates Under the New
Plan.
The Central railroads plan OF reOrganiza-
ton has attracted considerable attention
since its publication, but so far as can be
aseertained there has been no unfavorable
comment whatever. upon it, except from
those interested in the Savannah and
Western properties. who Of course are not
satisfied with what has been offered them.
The Southern Bank will be the depository
for securities held in Savannah and in this
section. This bank is now in correspond
ence with those interested in the plan, and
will probably receive the necessary papers
for beginning the work OF receiving the
securities sometime in the latter part of
this week That the Southern Bank will
represent the Mercantile Trust Company
here has been definitely decided upon.
So far as the Southwestern and Augusta
and Savannah railroads are concerned the
plan Of reorganization contemplates simply
a renewal of the leases on those two prop
critics. and their stockholders do not have
to deposit their holdings at all with the
Mercantile Trust Company. A new lease
of these properties at five per cent. is to
be made and there IS no reason why a de-
post of the securities on that account
should be called for.
One question which has excited some
attention is as regards the securities
already on deposit with the Mercantile
Trust Company. which were placed there
under the Hollins plan Of reorganization.
The Mercantile Trust Company ADVERT
ses that on application to it the
Mercantile Trust Company certif-
Gates of deposit under the Hollins plan
Of reorganization can be exchanged for
certificates under the new plan.
Judge William ID. Harden the chair
man of the debenture holders committee,
one of the junior securities in which those
in charge of the reorganization have been
most interested, returned yesterday from
New York. where he has been in confer
ence with the reorganization committee.
The committee and all those directly
interested in the plan in New York have
fun confidence in its success" he said,
when asked about the matter Il saw
myself where c. II. Coster of the firm of
j. +. Morgan d co. signed a fun approval
of the plan on the part of the firm. 1t
may be said that there is no one against
the plan except the Savannah and West
ern people, and the fact of their opposi-
ton is well known. So far as the de-
bentures are concerned l have not even
heard of a single individual who is not
entirely satisfied.
In reality it is a case of Hobson's
choice, and if this plan, for any reason,
cannot go through, il is not probable that
any other plan Will be attempted. 1t IS
about settled that the foreclosure and sale
Will take place under the Sl3,O00000, or
consolidated mortgage. and in all prop
ability the stoppage Of the sale under
that mortgage by Judge Speer's order win
not be insisted on. The treatment of
the junior securities is considered fair
in every way.
THE plan is to be effective and to so
into operation just as soon as a majority
of the certificates of Indebtedness have
been deposited with the trustee, This i'm
plies that a majority OF all the Other Sc
curties has been placed at the disposal
of the committee"
Judge Harden said il would not he
necessary for holders of Southwestern
ana Augusta and Savannah railroad stock
to deposit their holdings, as the plan sim
ply contemp!ates making d now lease with
those properties, and the differences be-
tween the system and those lines as to
past due rent will be adjusted. 1t is not
likely that there will be any extension Of
time for the deposit Of securities, but
at the same time it is considered that
those who represent trust estates and
others in such situations that they can
not act Immediately, will be given due
consideration and allowed to deposit their
securities at their earliest convenience.
Nothing is known as to what the Sa-
vannah and Western railway will fin
ally do. 1t may be that the bondholders
of that road will do what they were adj
Vised to do last February, and that is,
to take their road and set up for them
selves AS a matter of fact however.
it is thought they will make a great blum
der If they fail to remain in the system
and accept what has been offered them by
the committee. The committee told them
last February that the offer made in the
plan was all that could be given them,
and if they did not want to accept it
they had better foreclose their MORTGAGE
and buy their railroad. 1t SENS that they
are taking this advice and will do what
they can with it independent of the Cen
trail, unless they change their minds be-
for the plan becomes operative.