The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-08-27


subject TO the said tripartite mortgages,
and all the Indebtedness secured thereby
and subject also to all costs incurred in
the original consolidation causes or eth
er Of them, including allowances to sOlic-
itors or counsel, and expressly subject to
all the rights, liens. claims and equities
of the Southwestern Railroad Company
in, under. or with respect 10 said tripar
tite mortgages, and the bonds secured
thereby as they may be at any time here
after decreed or adjudged to it in this con-
solidiated cause or otherwise.
The sale is to be conducted from the pas
senger station in Savannah on day TO be
fixed by the special master after the pub
lication of a general advertisement once
weeks for four weeks in Savannah, Macon,
Atlanta and New York.
The attorneys directly representing the
cause to-day were Lawton & Cunning
ham for the Central Denmark & Adams
for the Savannah and Western. Judge
Harden of Savannah representing
the reorganization committee, Judge
Miller Of Macon, the Southwestern;
Messrs. Jolieu of New York and Henry B.
Tompkins, Atlanta, the Central Trust Co.;
Henry Crawford of New York, the Far
mers Loan and Trust Co. Besides these
there We're number of other attorneys
interested in various branches of the case.
New York, Aug. 26.-The consolidated
and Western Railroad Company met this
morning at the office of Messrs. Simon
Borg & Co. to consider the proposition for
a participation in the reorganization Of the
Central Railroad and Banking Company
of Georgia, submitted to the Mercantile
Trust Company by Gen. Samuel Thomas
and T. r. Ryan. The meeting was or
ganized by the election of Simon Borg as
chairman and was entirely harmonious.
A number of questions were asked the
chairman by the various persons pres
ent.
The plan for the reorganization of the
Central Railroad and Banking Company
of Georgia was unanimously approved by
all the bondholders present or represent
ed by proxy. More than 20 per cent. of all
the bonds deposited with the Borg COM
mittee We're represented and as the agree
ment required the approval Of only 60
| per cent, the assent of the Savannah and
Western bondholders TO the plan has now
been given and the reorganization of the
Central Railroad and Banking Company
of Georgia will soon be perfected.
Speaking of the final adjustment Mr..
| Simon Borg said: 81 am, of course, very
much pleased with Savannah and West
ern bondholders and the other security
holders of the Central Railroad and Bank
ing Company of Georgia have reached a
satisfactory agreement 1 would liked
to have obtained more for the Savannah
/ and Western bonds, and have thought that
the merits of the property deserved a
higher recognition, bat all parties had to
make concessions in order to get any plan
| through.
MY committee especially, was confront
ed with many difficulties and complica-
| tions growing out of the relations of the
| Savannah and Western Railroad Company
| TO the Central Railroad and Banking Com
pany of Georgia.
"The Central Railroad and Banking
| Company of Georgia held all the stock of
the Savannah and Western Railroad COM
| pany, and in addition it held in its treas
ury and had hypothecated to secure its
own floating Indebtedness, $l,62S,OOO of the
| consolidated bonds issued by the Savan-
nah and Western Railroad Company. To
add to the complications the receiver OF
the Georgia Central, one of whom
was the active and managing receiver of
the Savannah and Western railroad claim
ed a debt against the Savannah and West
ern and the rolling stock owned by the
company, aggregating in the neighbor-
hood Of 100000.
awe were further confronted with the
/ fact that the Savannah and western
| Railroad Company owed an underlying
| lien of 81 100000 with accrued interest
| for several years.
| Rv the settlement we secured the pay
ment of all underlying liens, the can
| collation. of all the claims of the Central
| Railroad and Banking Company OF Geor-
/ gia. or its receivers, against the SaVan-
! nah and Western Railroad Company, the
payment of all costs of the receiVershlp
| and of the foreclosure of the MORTGAGES
based on the Savannah and Western
| railroad. and in addition to the above
Cancellation of the 81, ,62S, 600 of the bonds
| of the Savannah and Western Railroad
| company claimed by the Central Railroad
| and Banking Company Of Georgia.
"While believe that If the bondholders
had united a year or so ago and enabled
us to avail ourselves of the offer OF the
| courts to give US a separate receiver
when a majority of the bondholders re-
ouested it, that we would have done
| better for the bonds, 1 am perfectly salts
| fed however, with the settlement made,
| and am sure that under the circum-
| stances IL was the best that could have
been obtained. 1t must be remembered
| that the Savannah and Western bonds
| sold as low as 921s per cent. If 1t had
| moi been for the active works of the
| committee and the skill and ability dis
| nlaved by the counsel who represented
! ns the Savannah and Western bond
| holders would never have obtained any
| thing like the amount they will now re-
ceive."