The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-08-12
~ELEcTRrcs STATUS REVIEWED.
One OF the BOndhoIders Gees over
the Receivers Report.

Savannah. Aug. n.-Editor Morning
News: In your issue OF Sunday last I
read with interest an article headed "Elec-
tries Status Reviewed
The article reviews a general report OF
Receivers Young and Collins. nled in United
States court recently, and published in
fun in last evenings Press. This remark
able document covers the period from Jan.
s. 1885, the date Of the appointment OF the
receivers, to July 6. 1895. about eighteen
months
The object aimed at in the receivers re-
port appears TO be to exhibit the phenom-
email success OF the receivers in their ad-
ministration OF the property, and also its
alleged present state Of prosperity. How
ever, there may be captious and unreas-
enable persons who refuse to be convinced
by the formidable array OF figures pre-
scented, and inclined to dispute the facts
with the worthy receivers in their frantic
Efforts TO make things look attractive.
Among other things these benighted per-
sons may not be able 70 understand how
such items as car painting and lettering"
repairs to motors" and rebuilding of
rotten bridges, etc." should be credited
as "bettermen ts"-or in what manner they
| add to the earning capacity Of the road.
Again, they may say, these ODtuSe fault
/ finders, that the reduction Of the floating
debt seems to have been brought about
mainly by the sale of the assets, or in 9TH
er words, the corpus of the concern, and
not from any net earnings. In fact, they,
these lgnOramuSeS, may venture to assert
/ that there were no net earnings, and that
the amount set down to that account is
purely fictitious, and was arrived at by
emitting to charge anything for receivers
expenses, or for necessary legal charges.
In other words it may be asserted that
| the road would seem to have been run
I HH Nsn h.. aHs.ea -
| GERS, and that the eminent counsel en-
gagged in defending me company in the nu-
merOuS suits for damages to persons and
property and other legal services, had
rendered said services gratuitously.
In the recent bill filed by the trustee Of
| the bOndholders for foreclosure and sale
| of the road, the following language is
used and cOncurred in by the counsel for
| the receivers; The Electric Railway Com
| pany Of Savannah is hopelessly insolvent
and unable to pay its debts and liabilities"
That in consequence of the complete in
solVency of the Electric Railway Compa-
| ny, the property being in the hands Of re-
/ ceivers appointed by the court, etc, that
the Electric railway be foreclosed and
/ sold, etc"
All of this is in violent contrast with
| the closing sentence of the receivers re-
| port, viz: with the physical condition
| OF the property considerably improved"
etc, the liquidation by far of
| the larger amount of It's float
/ ing debt, and the re-establish-
| ment of fares to d more reasonable rate
| than existed at the time of our appoint
ment the owners and creditors of the
| company have reason to hope for a grad
u2l Improvement in the condition of its
| affairs"
The decree of sale requires that $50. 900
in cash shall first be set aside to liqudate
| liens prior to the bondholders. What
/ does this mean? say these obnoxious and
! inQuisitive critics again. Surely, after re-
dueing the old floating debt from $4,000 to
/ $4,000 by selling the property of the con-
/ Germ, 1t cannot be possible that there now
exists new floating debt of $4,000 Gre
| ated in eighteen months.
Then again these disagreeable persons
| indulge in unseemly levity and proceed to
/ criticize in 1ippant manner
| the numerous schemes Of consol-
| idation and reorganization of which the
Electric railway has been the
| unlucky subject, and they laugh at
| the brilliant fnanciering INDUCED in at
its expense, and of which it has been made
| the victim.
First, they say. the company had $500. 900
| bonds issued, and as the company couldn't
| earn interest on them, they proceeded to
| increase the issue to $4,000. Then, Of
| course there was another ro-organiza-
| ton, and the $500 900 was reduc I'd to $500 -
! 900, and about two years interest surrend-
| cred. The two years pass, and still no
| coupon money in sight! and now the road
| is to be sold and proably most of the pro-
| ceeds divided among the holders of the
/
/ left.
| Yet these heartless and unfeeling critics
| have the temerity to allude to this sort Of
| dnanciering as "grotesque and ridiculous"
| 1t is useless to argue with such people
| They have no appreciation Of financial
/ genius, and insist upon Judging a PROPER
| ty by the actual results of it's operations
as reflected by its receipts and expenses
| and applying that vulgar and primitive
method in estimating its value, never tax
| ing into account It's capacity as basis for
| the unlimited issuing of stocks and bonds
1t is painful to contemplate such dense
| ignorance and mental weakness, and
am sure that my fellow bondholders will
| agree with me in declining to enter into
any discussion with people who are in
clined to view the subject Of the financial
management of the Electric railway dur
ing the past two or three years in a ludi-
crous light.
! 1 feel that it is a serious and solemn
subject for most of the unfortunate bond
holders as it certainly is for the writer.
| who is One Of Them.
CITY BREVITIES.