The morning times., 1896-10-22

II uds Deen suggested. by committee
OF the lexington and Soldiers Home Rail
way bondtuidcrs that there lie Il change
III ,Ec reCelvcrship Of that road
ThiS committee was appointed by the
bondioldcrs of the lexington and Soldiers
Home hallway to advise the bundhuIders
al tue matter of the issuance Of certificates
OF lndcr edUe>s by Receiver W. X SchCepf.
II submitted its report yesterday Afternoon
at Tue directors rooms of the American
Sccurl,y and Trust Company.
The Committee made the suggestion that
there should he Il change in the receiver
siip, among other Recommendations
TIE report precipitated Il debate, which
was held behind closed doors from 3 p.
III. until u. IN, when the hUndnuiucrS adj
JUGrn"d wl,huul taking final action, the
main queS ion under discussion Icing the
adoption Of the committees report.
The following bondholders were present
at The meeting:
W. L. Barker, CLAIR an +. PelouZe. sec
| rcIary; c. L. Williams, l.. j. Davis, S. W.
Woodward, W. L. Barker, X. 4. johnson,
Dr. Woodbury. and Judge Jerc Wilson.
REPORT OF THE COMMITTEE.
The committees report is as follows:
The undersigned, having, on Tuesday,
the 10Th day Of October, 1896. been ap-
pointed committee to consider and re-
port as TO the course that should be pur-
sued hy tie hondhoders of the said COM
pany in respect 10 the application OF the
receiver recently appointed, to be allowed
10 Issue rec elvcr's certificates for the
purposes men duned in lis said appiicat ton,
beg leave 10 submit tue following report:
isr pdrpurrr ,"r NuI.H tuv rover 10
issue such certificates is desired by the
SAID receiver may be briefly enumcrat ed
as follows: To meet the expenses of
operating the road, such as feed bills and
I of hat l,.r e,.,,r
for such foundation and appliances a : are
necessary for the purpose of supplying
meters with compressed air, the cost of
which Is estimated at from 81 800 to
$4,000; To pay for the ten compressed air
motors contracted for by the company be
fore the appointment of said receiver for
The purpose OF testing the efficiency of
that motor, at Il cost of probably 500 Zoo,
aud. in The event the motor is successful,
then to meet the expense OF completing
tie equipment "r the road, hiCh would
amount To S50O,O0O or 5000 900 These
are the items apparently contemplated by
the lc1eivcr'S report. as We understand il.
ITS CONCLUSIONS. .
In view of the gravity of the matter
submitted 10 us. we have endcavorcd, by
all the means within our power, to asCer-
t:tin The real situation and to give To the
bundhuldcrs our best Judgment as to what,
under tn" circumstances. should be DONE
and, without going into minute details,
ard leaving out of view all legal questions
that might be raised, but considering the
matter from purely business standpoint
and in the light of the best Information
that We have been able To procure We
have To say that we have reached the con-
t'lusirn that the best course To he pursued
under the conditions now existing, is EN-
hraCei in the following suggestions:
d. Il h.
Ceivership. Neither the bondholdcrs nor
the stockholders Were represented or had
any voice III respect To the appointment
OF the present receiver. and We find that
there Is almost. il not quite, universal dis
satisfaction with him.
''lnaSuuch aS the road appears now not
To- h" paying its operating expenses, it
! would hc lest to authorize the issuing of
receivers certificates for the purpose of
meeting such expenses.
Certificates should be authorized to pay
for the plant to which aluSion is above
made. IL The extent of not exec cding
$1,000
BELIEVE IN AIR
In view of the fact that the act Of
Congress requires a compressed air motor
t. lie tried, we have made diligcnt in
QuiTy. to such extent as We have been
ahle, as to the status of the matter iii
respect to furnishing these motors, and
our Information is, and we think il NAV
he safely relied upon that the ten IN otorS
that have been contracted for are in
such state Of forwardneSs rs to cOnstruc-
tiun that in Il very short time, possibly
within two weeks, one or more of them
can he placed on the road and the test
begun. and the others could be supplied
shortly thereafter.
These motors Will cost nothing unless
they are success. and we understand
that TO be commercial rs well as
mechanical success. If they are a success
they would have to bc paid for at a cost
in the neighborhood OF 100000 There
are no means to pay for them, III the event
OF success, except by the issuance Of re
CeIver'S certificates. and as rapid transit
Is essential to the prosperity of the road,
and as Congress has required that this
motor shall he tested and used if success
| Iul, II is our opinion that, from a business
| standpoint. it is best to authorize the sSu-
| anCe of receivers certificates to pay for
| the ten motors above referred to when IL
| is aSCertained that they are a mechanical
| and commercial success. OF course pro-
vision should he made that no certificates
| shall he issued until this success is demon
| strated.
We are of opinion that no provision
| whatever should now be made for the
!
! mert, i. O., in excess of that in. pa yment
iOr the ten motors, of the road, even if
the said motors prove SuCCcsstul-that re-
sistance should be made to any order To
| that effect, or looking to that end, at
present ut least.
''if these motors are successful the
company sh ould be entirely unembar-
raised by any provision for the issuing
| Of such certificates, and the affairs or
tie company. and everything pertaining
| thereof, either by is suing new bonds
| tfat. If the motors are successful, and
| thereby the future prospects of the road
are improved, advantage may be taken
thereby. either by is suing new bonds
| 10 cover these now existing, and includ-
| ing such further sums as might be neces-
| sary fer this further equipment, or by
reorganization, or by any other means
| tEat good business policy may dictate.
we do not think that at present there
| should be any recognition OF a purpose
| hereafter to issue receivers certificates
| FOR the purpose Of completing the eguip-
| ment, as above indicated.
Looking at this matter from purely
business standpoint, it seems to us that
the course above suggested would be for
the best interests Of the bondholders and
| would also be just to the stockholders
and creditors of the company"
The report is signed:
II. A. JOHNSON Chairman.
S. W. WOODWARD,
C p. WILLIAMS