The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-09-11
EASY WAY TO BUY RAILROADS.
HOLDERS OF TYBEE RAILROAD
CERTIFICATES DETERMINED
TO GET THEIR MONEY.

They Do Not Propose TO BE Put on
Any Longer by Thomas and Ryan
and viii Take steps in the United
States Court to Compel Them 10
settIe-Mr. j. &. Butler Expresses
Himself on the SituatiOn-The HOl-
ders of the Certificates willing to
Take the Road For Their Ger
tifcates and Give Something 20
Boot.
The holders Of the $4,000 of T'ybee rail-
road certificates want their money, and
they are determined to have it. AS stated
in yesterdays Morning News. Messrs
Thomas and Ryan have refused to pay.
The grounds for the refusal are not
known, but the fact is very evident to
the holders of the certificates. AS the
certificates are first lien on the Tybee
railroad. the holders are in no danger
of losing their money but they object
to being kept out Of It, especially after
having been assured several times that
it would be paid.
The certificates are now nearly two and
a half years old, having been issued May
J. 1894, and were due May l last. When
the Tybee railroad was destroyed by the
storm of Aug. q. 1898, the Central rail-
road was in the hands of the receiver,
Mr.. H. NJ. Conner, NOW It's president. No
arrangement had been made for the reor-
ganization of the CenKal and the re-
ceiver had no money with which to re-
build the road.
The property owners on Tybee saw the
necessity of rebuilding the road before
the ensuing summer. Mr.. ]. J. McDo-
nough offered to rebuild it and to ac-
cept in payment $4,000 Of receivers GER
tifcates, which should constitute first
lien on the property. Mr.. McDonough's
proposition was accepted, and an order
of the court was issued to that effect.
The gentlemen who united with Mr. Nc
Donough in furnishing the means for this
work were Mr.. J. G. Butler, Mr.. William
Kehoe and Hon. Herman Myers. After
wards 5000 of the certificates were dis
posed of to Col. j. H. NJ. Clinch, and
Sc, 900 to Capt Henry Blum, leaving $4,000
in the hands of Messrs. McDonough, But
Ter, Kehoe and Myers. This latter amount
was pledged with the Mechanics National
Bank of New York for a loan. AS the
certificates bore per cent. interest, and
as the loan was secured at per cent,
the arrangement was a perfectly salts
factory one to the certificate holders.
The bank called the loan last week. and
as Thomas and Ryan refused to pay the
certificates the four gentlemen interested
were forced to raise the money here and
forward to New York, the rate of inter
est charged them here being per cent.
About three months ago." Mr.. Butler
said, in talking with a Morning News re-
porter, I'VE authorized the Mechanics
bank to make demand upon Thomas and
Ryan for the payment Of the certificates.
The demand was made, but payment was
refused. About two weeks ago, Mr.. Ke-
hoe was in New York. He called upon
Thomas and Ryan and demanded that the
certificates be paid or that the property
be turned over to the holders of the certifi-
Gates. They asked for ten days in which
TO reply. which was granted. The ten days
passed and they never even condescended
TO write us. The bank called for the mon
ey and we had to forward 1t from here.
Mr.. Kehoe could have arranged in New
York to take up the loan without trouble,
had he believed II necessary. We telegraph
ed the Mechanics Bank Wednesday to
make a demand upon Thomas and Ryan
for the payment of the certificates. and re-
ceived reply from the bank that Thomas
and Ryan had refused to pay the certif-
Gates. We will now ask the United
States court to force payment
without delay. The certificates will
be here tomorrow and we will proceed at
once to take steps to force payment
when the road was put up at auction
about a year ago" continued Mr.. Butler,
I'VE we're on hand with certified check
for $4,000, the amount required by the
court, prepared to bid on the road. Judge
Harden bid $4,000 at the offstart, and as
that assured us that the certificates would
- {nc 20
the order OF the court this money should
have been deposited with the court to pay
off the outstanding liens. The reorgani-
cation has issued new securities on the
property on which they have already de-
clared dividend of ~ per cent, payable
Oct. /. just think of thisl They have de-
clared dividend on securities which they
have issued on our property for which
they have never paid Messrs. Thomas
and Ryan have certainly discovered an
easy way In which to buy railroads. Ac-
cording to their plan all that is necessary
10 do is to bid I'm the property, never mind
the amount as that doesn't have to be
paid, then go ahead and issue securities.
1t is certainly very kind OF these gentle
men to declare a dividend upon the securi-
ties but we would rather they paid us for
our property first"
Mayor Myers, who Is acting as the finan-
cial agent of the certificate holders, said
that the matter has been referred to at
torneys, who will take the proper steps
10 secure payment. As the certificates are
first lien against the property, there is
no need for uneasiness. he said.
Suppose that Thomas and Ryan should
prefer to give up the road TO your" Mayor
Myers was asked.
I'VE would be glad to take It," he re-
piled, '-and give them little more for it,"
ANOTHER LITTLE FRACAS