The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-04-07
TO WORK INDEPENDENTLY.
THE REORG ANTzATION COMMITTEE
AND SAVANNAH AND WESTERN.

The Securities offered TO BE Held for
the Savannah and Western Bond
holders il They Want Them, But
the REORGANIZATION VIII Proceed.
All the same-SomcthfnE Expected
to BE Accomplished at an Early
Date-The New savannah and NVes-
tern Committee Has Advertised for
Deposits of bonds - it'll the Cen
trail Trust Company.
The news comes from New York that
the interests in charge OF the Central rail-
roads reorganization plan will go ahead
with the reorganization regardless Of the
action that has been taken by the bond
holders OF the Savannah and Western
railroad. with view. it seems. TO intim-
dating the other interests into giving them
what they claim.
The committee in charge Of preparing
the plan has made the statement that it
went as far as possible with the Savan-
nah and Western bonds. giving them what
was believed TO be a fair pro rata Of
the new securities. namely, 90 per cent
in per cent. bonds. % per cent in first
and Is per cent. in second preferred income
bonds. on this offer. it is understood. the
committee has said it will stand pat, and
that it will go ahead and reorganize the
property. The securities viii be there for
the Savannah and Western bondholders If
they want to take them. but II not why
they cannot be prevented from Withdraw
ing their property from the scheme.
The new Savannah and Western com
mittee. in which all the interests concern
ed have consolidated with Simon Borg as
chairman, has issued a call for deposits
of the bonds on this property with the
Central Trust Company OF New York, with
a view. it is believed, Of making a pun
Tor better terms. or Of reorgauiZing on
their own baEis independently of the
other Central railroad properties. They
claim they are entitled to 4 per cent.
straight, and that they are going to have
it. or have a separate receiver and a sep
arate sale for their road.
The committee cannot. under the in
structions it has had from ]. +. Morgan
& Co. let the fixed charges go over 81, $780,
COO, and in justice TO the other interests
it did not see clear to make a larger offer
10 the Savannah and Western than it did.
This is where the two interests have
FLASHED, and IL is now reported that each
is going a head to fight il out along its
own lines.
This undoubtedly means a good deal
OF trouble for the other Central railroad
properties. 1t viii be remembered that
Justice Jackson decreed two years ago
that the Centrals Endorsement on the
S.755,O0O consolidated mortgage on the
Savannah and Western was valid, and
should the property be sold separately
from the Central the latter might be
held responsible in case the Savannah
and Western did not bring the amount
of the bonded indebt edness upon It. This,
however, being judgment against an in
solvent corporation, could hardly amount
to much. unless the Centrars other prop
critics bring a pretty good figure.
But there are other ways in which the
Savannah and Western will undoubtedly
give the Central some trouble. The Ogee-
chez canal, a dividing line between the
CentraIs wharf properties, the railroad
under the bluff along the wharves, and a
lot Of engines and cars, all of which were
purchased with the Centraps money, are
included in the Savannah and Western
mortgage
The removal OF this property from the
Central and a separate sale would I'M
doubtedly cripple the Central, and though
that road has a counter claim against
the Savannah and Western for purchase
money for some of this property, IL is
hardly probable that this claim could
come in before the first mortgage on the
property. The committee may, however,
be shrewd enough to go ahead with the
reorganization, irrespective of the efforts
of the Savannah and Western, and still
prevent any serious difficulties of this
nature.