The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-06-16
NO OPPOSITION EXPECTED.
THE SAVANNAH AND WESTERN TO
OFFER No ACTIVE HOSTILE
TIES.

while IL Does Not Assent 20 the Plan
IL VIII Not seek to Put Any Oh
structIons in lis Way-Vhy the
Tybec Railroad BOndhoIders Were
offered "a second Instead of First
Lien on Their Propcrty-DepOsits
of Securities at the Southern Bank.
Those in charge OF the reorganization
movement, for the properties of the Cen
trail railroad are satisfied that the action
Of the Savannah and Western railroad
bondholders viii ia no way interfere with
the carrying out Of the general details
of the plan as it has been announced.
Hon. William u. Harden. who is vice
chairman Of the debenture holders COM
mittee, and who has had some active deal
ings with the reorganization committee.
received letter yesterday from represen-
tative Of the committee in New York, stat
ing that the action Of the Savannah and
Western railroad bondholders IN refusing
TO accept the plan. did not In any way in
dictate active hostililes to the plan by any
of tine interests concerned. They consider
that the indications are that there will
be no active or bitter opposition to the
plan in its general scope from any source
whatever
In fact the reorganization committee has
been given to understand that there will
be no active opposition TO the plan on the
part OF the Savannah and Western bond
holders. nor on the part Of any one else
who is concerned in the reorganization of
the road. The opinion is that the plan as
presented viii be accepted by all inter-
ests, and it is expected that it win be de-
clared operative as soon as majority of
the certificates Of indebtedness have been
deposited with the committee. All the COM
mittee wants is a majority Of the securi-
ties, and IT is not going 10 hold off for any
minor or petty interests.
The letter heads on which communion
tons are addressed by the committee are
all headed Reorganization Central of
Georgia Railway Company"
There has been considerable interest in
the question of what the Savannah and
Atlantic or Tybee railroad is going to
do The bondholders have asked the Ques-
ton why they were given only a second
lien on their property in place of Il first
lien, which they now hold. 1t was learned
from Judge Harden that the allotment of
junior securities was made to the Tybee
railroad because it now rests under an
indebtedness on receivers certificates to
an amount almost equal to the income
producing power of that property sepa-
rately considered.
Under the plan as announced the re-
organization committee and the under
writer's of the plan contemplated paying
off the receivers certificates and releasing
the road from the Indebtedness claimed
fYef 1,rrf 40 r-a1 raj
giving the bondhoders a second lien on
the property. The bondholders, however,
having decided to retain their road and
not go into the reorganization plan, Will
have to pay off the receivers certificates,
the expenses of the foreclosure of their
mortgage, and the costs of any suit on
claim against the property which may be
brought by the Central railroad and which
is liable to be pushed by the reorganizers
OF the property.
The Southern Bank has been receiving
deposits of securities for only two days,
but has had deposited quite number OF
shares of stock as well as certificates of
Indebtedness by local holders. Some
bonds among those that have been called
FOr have also been deposited The securi-
ties that the Mercantile Trust Company
as the trustee calls for are Central rail-
road stock, and certificates of indebted
ness Montgomery and Eufaula bonds,
Savannah and Western bonds, Chatta-
nooga, Rome and Columbus bonds, Macon
and Northern bonds, Columbus and Rome
bonds and Savannah and Atlantic bonds
As will be readily understood, the trus-
tee will receive very few of the Savan-
nah and Western bonds, and probably
none at all of the Savannah and Atlantic
bonds. Very few of the former bonds,
however. are held here.
The Southern Bank expects heavy de-
posits of all classes of securities, which
will go into the plan, toward the latter
part of the week. The bank has sent out
circulars all over this section OF the coun-
try wherever any of the securities are
held asking for deposits, and as the time
is up on July l, it expects early replies.