The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-04-02
OWNS IMPORTANT PROPERTY.
SAVANNAH AND WESTERN BONDS
COVER THAT THE CENTRAL
BOUGHT.

"a Includes Some Terminal Property
with the Line Along the Wharves
Under the BLUM and "A Lot of Cars
and Engines Now i'm Use by the
CentraI-May Make the savannah
and western Stronger in It's De-
mands Than Many BeIieve-The
BondhOIders Want 4 Per Cent.
StraightOut.
The hitch in the progress with the Cen
trails new plan OF reorganization due to
the refusal of the Savannah and West
ern bondholders to accept the terms Of
fered them may prove more serious than
now appears to many who are not IA
miliar with all the facts.
The Savannah and Western bondholders
have. it seems. stronger ground than
merely the lines Of railroad In the system
on which to stand. as the mortgage by
which their bonds are secured
includes some of the most val
liable property now in use by
the Central railroad This mortgage
covers for one thing some valuable ter
minal property here, in which is inclined
the railroad track along the wharves.
1t begins at the wharves of the Central
Railroad Company and runs along the
river front under the blum as far as the
lower rice mill. about the foot Of Houston
street. In addition to this there are IN
cluded in this mortgage "A large number
of engines and cars which have the name
of the Central railroad painted upon
them. and which are now in constant use
by the Central
This terminal property and rolling
stock, the value Of which is something like
$4,000. were purchased with money ne
longing TO the Central railroad, but were
put in the name Of the Savannah and
Western at the time the bonds we're is
sued, and were included in the mortgage,
IL is said. in order 10 strengthen the Sc
curity as there was not very ready
market for such bonds at the time they
We're sold.
There are s7.755OOO Of the first consoli-
dated mortgage bonds on the Savannah
aud Western lines. and of these the Cen
trail owns 81 $4,000. The foregoing proper
~ which is of considerable Importance TO
the Central, would, Of course, be foreclosed
on under this consolidated mortgage
should the Savannah and Western with
draw as its bondholders threaten to do,
and have their property sold at a sepa-
rate sale. In behalf of the Central, how
ever. which paid for these properties.
there has been filed In the United States
courts a claim for about 100000. in which
the amounts paid out for these proper
ties that we're put in the name of the Sa-
vannah and Western are included 1t is
being sought 20 establish this claim as
a lien prior to that Of the consolidated
mortgage, and, while some of the claims
may be entitled 10 rank as such, IL Is
considered a matter of grave doubt as to
whether any claim for this properly in
cluded in the mort gage can be made to
come in ahead Of it.
The Savannah and Western bondholders
want per cent. straight out Their pres
ent security is a s per cent bond, but the
interest has not been paid in some time.
They have been offered 50 per cent in new
4 per cent. bonds, rs per cent. in first pre-
ferred income bonds. and % per cent in
second preferred income bonds, and this
they refuse to accept They say their
road earned per cent last year, and in
a bad year, too and they do not see why
they are not entitled to that amount.
In the meantime. it is understood that
DreXel. Morgan & Co. or j. p. Morgan e.
Co., as the firm now reads, are getting i'm
patient and are in a hurry for something
10 drop. They have said to those who are
arranging the plan, Gentlemen, get up
your plan, but don't let your fixed charges
run over $1S00,000, and when you have
apportioned your new securities to suit
yourselves, bring it in and we will work
1t out"
In other words Morgan & Co will put up
large amount Of the fund necessary to
put the plan through, provided the fixed
charges are kept within the bounds of the
earning capacity estimated on a perfectly
safe basis Those holding the securities
must first agree upon the apportionment
Of the new securities, and then the finan-
a
through.
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