The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-07-18
WANT MORE FOR THEIR BONDS
TYBEE BONDHOLDERs To SEE THE
REORGANIZATION COMMITTEE.

They Talk Seriously of ReOFganiz-
ing and Operating Their own
Property Unless satisfactory Terms
Are Secured-Tbey DO Not Care 10
Exchange Their First Lien for
Anything But a Lien Of the Same
Rank and VaIue-A BOndhOlder
Who Believes the Property Would
Pay Ten Per Cent. on 100000.
Mr. John J. McDonough viii leave for
New York to-day as a representative Of
the bondholders Of the Savannah and At
lantic railroad. lie and Mr.. Gustave Eek
stein were appointed a committee TO see
the reorganization committee Of the Cen
trail railroad properties and md out II
some more satisfactory understanding
could not be reached. Mr.. Eckstein IS al
ready in New York, and Mr. McDOnough
Will Join him there tomorrow.
These gentlemen are both large holders
Of the bonds Of the Tybee railroad. and
they are with the majority Of the bond
holders who are not exactly satisfied with
the offer that has been made them by the
Reorganization committee.
The first offer made the bondholders was
par in second income bonds which were
made a second lien on the property. This
was entirely unsatisfactory and the bond
holders decided not TO accept it. The re-
organization committee thereupon recon-
sidered the matter and made the bond
holders an offer Of 90 per cent. in first in
come bonds, which are a first lien on the
n sr nd ffsaar4as
bonds, which are a second lien on the
property
The bondholders held a meeting TO con-
slider this last offer, and the majority of
them were opposed TO accepting it, They
then decided upon sending a committee to
New York to look after their interests.
They make the argument that they now
hold first lien on the property, and they
want a first lien in exchange for it or
they win take their property and operate
ii themselves.
I'VE can get the property and put il IN
solid stable condition for 100000 or less"
one Of the bondholders said yesterday. If
we cannot get what we want from the re-
organization committee, which is first
lien on the property. we can, form a syn
dictate among ourselves, pay of the S40,-
90 receivers certificates, and buy in the
bonds al 20 cents on the dollar, which
would make $4,000 OF course all the bond
holders wso desired would come into the
syndicate, and put in their bonds at 20
cents on the dollar, and an issue of $iO0, 600
new bonds could be made the basis of d
reorganization plan for the property. of
this, $4,000 would be used to pay off the re-
ceivers certificates and take up the old
bonds, while the remaining SO, 900 could be
used for such betterments as would put
the property in a solid stable condition.
The proposition IS to raise about eight
miles Of the track about two feet above
the present level, and anchor it down sol
idly so as to make 1t free from all dam
age by storms. This could be done for
about $4,000, and / believe the property
would pay ten per cent on the investment
of 100000 right along. The bondholders
have been discussing this phase of the
question for sometime, and If our commit
tee is unable TO accomplish anything, II is
possible that we will take hold and reor-
ganize the road ourselves"