The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-07-05
TO GO TO MACON TONIGHT:
ELECTRIC RAILWAYS RECEIVERS
AND ATTORNEYS.

To Appear Before Judge sPeer To-
m0rrOw-The Question on the
Permanence of the Receivership
Under the New Bill Filed by the
OgIethOrpe Savings and Trust
Company-What the Road Has
Been Doing Under the Receiver
ship-No Doubt That the Road VIII
Go TO a sale, A IL Cannot at Pres
ent Pay It's obligations.
Receivers John r. Young and J. S. Col
Inns Of the Electric Railway Company,
Mr.. Walter G. Charlton, who will repre-
sent the company. and Col. William Gar
rard, representing the OglethOrpe Saw
lngs and Trust Company. trustee, under
the 10000 mortgage on the property. up
on which foreclosure proceedings have
been instituted, will leave the city to-
night for Macon to appear tomorrow be-
fore Judge Emory Speer in answer to an
order to show cause why the receivership
under these proceedings should not be
made permanent.
This however, viii only be the prelim-
mary hearing. The company. as has been
stated, is unable 10 pay its interest on
the bonds, $1,000 of which was due July
1, and the answer Of the president was,
there were no funds on hand with which
to pay it. The reports from the receivers
show that the property has been far more
successfully operated since it has been In
the hands of the court than was the case
prior to that time. The report for the
sixteen months of the receivership show
IL. , Ia
which is about double that for the six
teen months prior to that time. But, as
will be seen, il requires about $55V0O or
more to pay sixteen months interest on
the bonds at per cent, and there is con-
siderable difference between this amount
and the amount of the net earnings act
ually made.
1t Is not known that any particular OPP
position will be made on the part of the
company to the sale Of the property. As
far as can be determined, it can only
admit the allegations to the effect that the
interest is due, has been demanded, and
is unpaid. This of course goes long
way in determining the result. II the
company cannot pay its obligations there
is nothing FOR 1t to do but 10 submit to
the decree Of the court. 1t is not likely
however, that any action Will be taken
with regard to the sale of the property
for some weeks to come The indications
are there may be a hearing as TO the sale
in August but nothing definite with re-
gard to that is known.
OF course no estimate as to what the
road might bring can be made at pres
ent. There is a good deal to be consid-
cred in connection with the property out
side of what it has done in the past. Its
conditions are constantly improving, but
in order to properly economize the road
needs considerable new equipment, which
the company in its present condition is
not able to put upon it. The cost of car
rying each passenger is about 3% cents
This may be said to be the actual operat-
ing expenses, including taxes, insurance
and all items Of expense that necessarily
cut figure.
large amount Of the travel, as is well
known, is done at present at cents, and
II Will readily be seen that under these
circumstances the property cannot do
what it should do. 1t may be said that
more people ride at cents than at >,
but this has been demonstrated to be
true only for brief period OF time. as in
the end it had been seen to be true that
about the same number rides at three as
at five cents.
The proceedings before Judge Speer to-
morrow will no doubt be interesting. The
street railroad situation in Savannah has
been more or less involved for sometime
ana anything tending to simplify IT
whether IN the shape of court proceedings
or otherwise will be closely watched. Both
railroads are to a certain extent practically
under the guardianship of the courts.
though only one of them is in the hands
of a receiver