The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-05-28
TRACTION DYNAMOS SHUT OFF.
CAR LINES NOW OPERATED FROM
ONE POWER HOUSE.

The street Railway Consolidation
Practically Completely Meeting
of the New Company Monday to
Elect characterization Company
Employees Notified They VIII Not
BE Needed After June I.
The consolidation of the street railway
systems Of the city is practically fact.
This was evidenced yesterday by the op-
Grafton of the lines of the Savannah
Traction Company from the power house
of the Savannah, Thunderbolt and Isle of
Hope railway. Representatives Of the TWO
companies said that this is understood to
be permanent arrangement The power
house OF the Savannah Traction Company
was operated part of the day, but shut
down its last engine at l o'clock.
1t is claimed there are still some ar
rangements to be completed before the
deal will be actually consummated. 1t is
hardly likely, they said, that anything
will arise now to prevent the consumma-
ton, but it is still too early to give out
particulars. It is understood that meet
ing Of the stockholders of the new cor
poration viii be held Monday, at which
abe amended charter of one of the present
companies, most likely the Savannah
Traction Company, will be adopted and
a board of directors will be elected.
Mr.. George Parsons will be president of
the new company, and MIR. J. II. Fall
of Nashville vice president The other
officers are not fully decided upon yet.
Capt. J. II. Johnson, however, win be
NTr cal
terday he did not know what position, if
any. he viii hold with the new company
but he had been informed that his serv-
ices were desired in connection with the
management. He will not be willing to
accept any Office with the company, Mr..
Collins said, unless he received a good
salary. Capt. Johnston's successful man.
agement of the Parsons properties dur
ing the long struggle for supremacy be-
tween the several lines insures him his
present place.
The monthly employees of the Traction
company have been given notice that their
services will not be required by the COM
pany after June 1. Most of them will
doubtless be continued in the employ of
the new company.
Under the deal by which the properties
are consolidated, Mr.. Parsons is practi-
caly In complete control holding a large
majority of both stock and bonds. Many
of those who have for the last several
years been interested in the two proper 8
ties which formed the Savannah Traction
Company, the old Savannah street rail-
way and the Electric railway, will now
give up their interests in street railways.
Under the terms of the consolidation the
holders of securities of the Savannah
Traction Company will receive bonds for
their holdings. Mr. Parsons gives a guar
antee to take all of these bonds which
may be presented to him within one year
OF the date of the consolidation in cash
at fixed figure, and many of those in
terested have signified their intention Of
surrendering their bonds for cash. Others
II is said viii hold them as an investment
considering the consolidated street railway
properties under Mr.. Parsons manage
ment good security. They will still have
their holdings of stock but MIR. Parsons
will have control by reason of his ma
jority of the stock
The main features Of the deal are said
TO have been agreed upon when Messrs
Fail, Myers and Collins met Mr.. Parsons
in New York in April and secured from
him loan of $125,000 on the property of
the savannah Traction Company to be
used IN defraying the obligations incurred
by the company in the purchase of the
Electric railway property. There was an
greement in connection with this loan,
which was not filed in the court with the
other papers, by which Mr.. Parson agreed
TO take certain amount of the bonds
OF the new company or such other com
pany as might be formed later at a price
fixed In the agreement. In this way the
present, or rather the past owner of the
Savannah Traction Company will not have
to repay Mr.. Parsons loan in cash, but
the loan viii be offset by bonds. 1t was
In effect an advance payment by Mr.. Par
sons for the control of the property.
Encouragement of the tracks has al
ready been decided upon. No radical
changes will be made at once. 1t is said,
and In making the changes care will be
taken to offer no opportunity for rival
lines to come in and compete for business.
The consent of the city authorities win
be necessary in making these changes and
the matter is likely to be brought to the
attention of council at an early date