The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-05-03
TO PAY THE FLOATING DEBT.
Objections TO BE Made 90 an order for
RorroH.inE Money for TINT Pnrno.e

HorroNinE money Tor Ihut Purpose
Mr.. A. r. Lawton. Jr.. attorney for the
I receivers OF the Central railroad. who
has just returned from New Orleans fIed
! ia the United States court yesterday an
order signed by Judge Don "A. Pardee.
authorizing the receivers 10 borrow money
on thirty days call with which 10 pay OFF
the floating debt Under the order those
lending such sums are 10 be given as Sc
curity the same collateral security as is
now held by those are the creditors OF
lne property on account Of the hoatins
The floating debt OF the Central rail-
road now amounts 10 about s. 294 -. 81
with interesLOf this amount nearly $50
gV Is due the syndicate represented by H.
j. Hollins a Co, about N.log.00 10 the
Mcrcdntle Trust Co, 10000 10 the Cen
tral Trust Co. and 10000 10 the Hanover
National Bank Of New York For this
pcd -hg DEBT are pledged the bonds Is
sued snder the S13.O01.000 consolidated mort
gage, and a large amount Of stocks and
securities in other railroad properties held
by the Central railroad and by which DO
controls these properties as a part OF the
Central railroad system.
All 81 these loans We're due and payable
July J. 1893. but by verbal agreements and
um lerstaudings between the creditors
and the receiver Of the property extensions
We re- secured from time 10 time The in
ter est paid since the maturity of the loans
has BEEN six per cent. besides a quarter
OF one per cent, as a commission. II WAS
de D,edness was past due and unpaid. and
thg Il the creditors under these loans have
several times threatened 10 sell the col
lat eral unless the amounts due are paid.
Tn ey show also that IL is important for
uhs Central railroad to retain these stocks
an bonds pledged as collateral in order
TO properly maintain the integrity of the
sys TEN.
T ne receivers state that they believe
they can borrow the money necessary to
pay of these loans on thirty days call, in
New York, including all the expenses,
int rest and commissions from July ],
1898, provided the court grants them the
pow er, and those who lend the money are
subj Ogated 10 the rights OF the present
cred itors under the floating debt. They
aske for an order allowing them to Dor
row the money on these terms at six per
cent. for permission TO place this same
cola terdl as security for the new loans.
ing Receivers Conner and Hayes TO Dor
row the money necessary to pay off
these loans under the circumstances cited
In the petition. They are allowed TO make
such loans for the purpose OF paying on
the whole or any part of the indebted
ness, and the collateral at present by
pothecated for the floating debt Is TO be
distributed among the lenders Of the
amounts sought in such maner as shall
be agreed on between the parties at in
terest.
Though this order has been granted
and the receivers have permission to go
ahead ana make such loans for the pur-
pose of taking care of the floating debt,
order. Considerable dissatisfac ton with
the order has been expressed by the
creditors represented by Messrs Calhoun,
King and SpaldLng and Mr. Leopold Wal
ZACH, chief AMONG these creditors being
the Savannah and Western people. For
this reason Q hearing with regard to the
order win be had before Judge Pardee
some time during this month, probably
I'm New Orleans, when all the Oble%1ons
20 the order will be entertained. The
reasons for the objections to the order
known