The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-07-04
TO FoREcLoSE THE MORTGAGE
ANOTHER BILL FILED AGAINST
THE ELECTRIC RAILWAY 60.


The OgIethorpe savings and Trust
Company, Trustee, Under the Recent
SOOO.OOO Mortgage, the Plaintiff.
The July Interest Unpaid-JudEe
speer signs an order Consolidate
Ing the Two Causes, and Appoint
Ing the same Receivers In Both.
The Matter 10 BE Heard in Macon
Monday.
Garrard. Meldrim & Newman. repre-
sentlng the Ogiethorpe Savings and Trust
Company. filed a bill IN the United states
circuit court here yesterday. asking the
foreclosure OF the mortgage on. and the
sale Of the property OF the Electric Rail
way Company Of Savannah.
The bin was presented TO Judge Emory
speer ID Macon on Thursday. and he sign
"a an order directing that the bin be
filed and another order directing that the
Electric Railway Company show cause
before him Monday July 6, why the re-
ceiversh.p granted under this bill should
not DE made permanent.
The bill consists OF twenty-one pages Of
closely type-wrltten matter. giving the
financial history Of the company. and Of
each different issue Of bonds. The issue
OF bonds with which il especially deals
was tina. OF 10000 made Jan. ]. 1885. to
take up all the outstanding bonds Of the
Electric Railway and the Savannah Street
Railroad Company. under which the Og-
lethorpe Savings and Trust Company was
made trustee.
This issue was designed under plan
OF reorganization which was accepted by
nearly all the bondholders, to take up all
outstanding bonds, and all but $3.50 of
them have been issued. These are still
held by the trustee 10 be exchanged for
certain outstanding bonds Of the old is
sues held by several parties, including II.
A. Pcvear Of Massa chusetts, under whose
bill the present receivership was created,
the Mercantile Trust Company OF New
York. a trustee under a former issue OF
bonds, and Messrs Hull and Lathrop and
others. These parties have refused so
far TO give up their old bonds In exchange
for those of the new issue.
The bill goes on to recite that inter-
est TO the amount OF $4,000 was due on
these bonds on July ]. The trustee rep
resenting parties holding *ZJ0,VO OF the
bonds made a formal demand for the IN
terest on the president Of the company at
its office and payment was refused II
being stated that the company did not
have funds with which TO pay the inter-
est. In filing the bill for foreclosure un-
der the mortgage given to secure these
bonds. and under which the Oglethorpe
Savings and Trust Company was made
trustee. that company represents 100000
Of the bonds. holders Of this amount hav-
ing asked that such steps be taken. The
mortgage covers all the property Of the
Electric Railway Company, including the
Price street line, the big belt all the spur
lines and the power house property
msfN oil an o. n IA anHltnmanr
1t is stated that the reorganization plan
has proven a decided failure. The receiv-
ers under the Pevear bill Messrs. John
r. Young and ]. 8. Collins, have done ev-
erything IN their power TO scale down the
operating expenses, and to make suftt-
cient net profit to pay of the interest on
the bonds. In spite of this, however, the
net earnings have been far short OF the
amount necessary to pay the interest, in
fact IL has been impossible to do so. A
continuation Of operations under the re-
ownership on the same basis, IL is stated,
will produce no better results, and the
bondholders for their own protection ask
a foreclosure Of the mortgage.
In the second place they ask that the
whole amount Of the bonds, principal and
unpaid coupons. together with interest on
the principal and interest from July /,
1896 at per cent, be declared to be due
and payable, and that the property be sold
under a proper decree. They ask, also,
that this suit be consolidated with that
OF II. A. Pevear and that the same re-
ceivers be continued under the new bill
Judge Speers order consolidated the
two causes in equity and retained the
same receivers as temporary receivers I'M
der the bill OF the Oglethorpe Savings and
Trust Company. The order directed that
the company show cause on Monday why
the receiyership under this bill should not
be made permanent, and the relief prayed
for be granted. Messrs. Charlton. Mack
all & Anderson will represent the Electric
Railway Company.