The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-11-07
ONE PER CENT. LESS INTEREST
CITY AND SUBURBAN BONDHOLD-
ERs AGREE TO REDUCTION.

Interest on the Company's Bonds Re-
dueed From to 6 Per Cent. on
Account of Additional Security
and COncessiOns-The Extension
of the whitaker and AbercOrn
BELT and the Electrical Equipment
to Come Under the Mortgage To-
eether with s25O,OOO OF the Sn-
vannah, ThunderbOIt and Isle OF
Hope Bonds.
An agreement has been reached between
MIR. George Parsons Of New York and the
bondholders of the City and Suburban
railway, by which, In consideration OF ad-
ditional security for their bonds the bond
holders agree to a reduction of per cent.
IN the interest. The present rate is per
cent. By the agreement which has been
recently effected the interest will here
after be only per cent.
Mr.. Parsons has been endeavoring for
some time to get reduction of the inter-
est on the City and Suburban bonds. There
are $3.50, 600 of these securities, 100000 be
ing first mortgage and $4,000 second mort
gage. They are practically all held in
Savannah, a considerable amount being
held by charitable and benevolent instt-
buttons. Mr.. Parsons has urged several
times that the interest was too great and
the earnings of the property would not
warrant him in continuing to pay il. The
bondholders have always stood pat, how
ever and announced their willingness 20
take possession of the road at any time
mir. Parsons chose to give it up.
Recently Mr.. Parsons made the bond
holders a proposition to give them bonds
of the Savannah Thunderbolt and Isle Of
Hope Railway Company at the rate of 10
for 100 in exchange for City and Suburban
bonds The bondholders considered the
proposition and rejected it, concluding
that per cent. bond on the City and Su-
burban property was better than 125 in
per cent. bonds out of an issue of $15O0,0O0
on the whole property.
This led, however, to further confer
ences, Mr.. Parsons being represented by
Mr.. ]. n. Hartman and Hon. Pope Bar
row. As result of these conferences the
bondholders agreed in consideration Of the
extension Of their mortgage over the en-
tire property of the City and Suburban
railway, including the extension about to
be made to Tenth street, the underground
and overhead electrical equipment and all
other equipment of the City and Subur-
ban, and also the addition Of $4,000 of the
new per cent. bonds of the Savannah,
Thunderbolt and Isle of Hope railway to
the security underlying their mortgage to
accept a reduction in the rate of interest
payable on their bonds. BY this means, Mr..
Parsons effects a saving of 1880 annually
It will be seen that the bondholders are
amply secured.
Mr.. Parsons agrees to a consent verdict
in favor of the bondholders in the case
now pending in the United States court,
brought to establish their claim to the new
electrical and other equipment added at
the time the line was equipped for opera
ton by electricity and to pay all the costs
in the case.
Mr. T. NJ Cunningham, trustee for the
bondholders, when seen in reference to the
matter, confirmed the statement of the
deal He said that while the holders of
City and Suburban bonds had always con-
sidered their security giltedge on account
of the delay on the part of Mr.. Parsons on
several occasions in paying the quarterly
interest and the litigation in the courts
over the ownership OF the equipment, the
bonds had been quoted in the market as
low as 81, though as matter OF fact, there
were none for sale.
These bonds are not for sale" said Mr.
Cunningham, because the people who
own them prefer to keep them and are
able to do So"
In reference to the extension of the City
and Suburban to Tenth street under the
recent agreement with the city. Mr.. Cum
ningham said that the bondholders of the
company gave their assent TO the ceSsion
of the right of way for the streets along
which the road is to run through their
property, as they did not consider it in
tured them. They declined to agree, how
ever, to cede the rights Of way for Third
and Fourth streets, which was sought by
the city, because it would have cut the
property in such a manner as to injure Its
value, and they did not consider that there
was any immediate necessity for opening
these streets.
MIR. Cunningham said that he considered
the Encouragement of the street railway
system under the agreement with council
an advantageous one for the city for the
reason that it would afford much better
railway facilities The property could be
much more economically operated by the
company, he said. and it would be to its
interest to give better service. With a
double track system, with cars running
constantly In both directions he said, the
service can hardly fail to be more salts
factory than that with the present single
track lines.
49,