The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-05-05
PARSONS HAS A DEED TO IT.
HE LOANED THE SAVANNAH TRAC-
TION COMPANY SI25,OOO.

Does Not Mean That the CONSOLE
dalton Is CompIete-Ihe Contrary
May Be the Case and There May
BE a Ffght-Each Wants "A Bigger
share Than the Other Is willing
to Allow.
The latest development in the street
railway situation was the fling yesterday
in the Office OF the clerk Of the superior
court OF a title deed TO the property of
the Savannah Traction Company in favor
of George Parsons Of New York, as Sc
curity for a loan Of $l25O00.
The deed is given by Herman Myers.
president Of the Savannah Traction Com
| pany, and J. H Fan Of Nashville, Tenn,
Of the first part and George Parsons of
! New York of the second part. The terms
OF The document show nothing more than
the transfer OF all the properties Of the
| Traction company to George Parsons to
| secure a loan of $125OO0.
The conveyance of the property is COM
! plete 1t covers all the lines of the trac-
ton company, all the cars. the lands. de-
pots, station houses, tracks. side-tracks,
trolley wires and all properties that are
! uStA AOE LAG pIOlliDlAOAl VI Inc GUAliPdA5
| interests which it owns.
| It was known, of course, to those on the
inside that this loan had been been made
by Mr.. Parsons to the Traction Company
a little over a month ago. and that it was
| one of the facts upon which was based the
belief that the negotiations for a CONSOLE
dation of the street railway properties
here were rapidly approaching a conclu-
sion. Whether this is the case or not is
| difficult to say at present. The filing Of the
deed may indicate the contrary or it may
indicate nothing at all.
That the Traction Company should have
gone to Gr. Parsons for a loan of this
amount after the bitter fight which has
existed between the Parsons properties
and the Traction properties for years, is a
matter Of surprise to a great many people
Mr.. Parsons would appear to be the last
man to whom the Traction people would
have gone. The loan may mean that Mr..
Parsons has the Traction properties with
in his grasp, but the Traction officials
say not. The representatives of both sides
say that Mr.. Parsons was the only money
ed man in New York, who was familiar
with the property and its condition and
capacity, and hence the only man in posi-
ton to intelligently make an advance upon
it.
be that when Messrs. Herman Myers and
J. II. Fall. the newly elected president and
vice president of the Savannah Traction
Company, went to New York some time
ago for the purpose of securing money
with which to pay the balance of purchase
money on the property and put 1t in good
condition for operation, they found it
very difficult matter to borrow money
They called upon Mr.. Parsons and solicit
ed his friendly aid. He introduced them
to several capitalists, but owing TO the
fact that the property had just emerged
from a receivership. following a disas-
trous fight with the Parsons lines, its rep
resentatives were unable to make any sat
isfactory showing of it's earning capacity,
and consequently could find no one who
would advance the money on the prop
erty. They then turned to Mr.. Parsons
What understanding was reached with
him is not known, but as the result of the
negotiations the loan of $125000 was Sc
cured.
There is good reason to believe that the
loan was part of a deal which was to re-
suit in the consolidation Of the properties.
Such deal is said to have been made,
and one of the conditions of the loan is
said to have been that Mr.. Parsons should
take certain amount of securities of the
new company at price agreed upon. Ev-
erything went smoothly. and the deal ap-
peared to be in process of perfection, when
ed bigger share in the new combination
than the traction people would consent to.
Whether the deed was filed because of this
fact, or whether it was filed simply as a
matter of legal process for the protection
of the lender Is a question.
Mr.. Parsons is in the city having come
up from Warsaw. President ]. II. John
ston and Director ]. n. Hartman were
seen last night, but gave little informa-
ton. The deed was filed simply as a mat.
ter of legal process, they said, and i'm,
| plies nothing except that Mr. Parsons
loaned that amount of money on the
traction property. 1t does not imply i'm
mediate consolidation by any means, they
| said. Mr.. Parsons had been applied to
for loan and being well acquainted with
the property, had seen tit to make II.
Mr.. Herman Myers president of the
traction company, said that the filing OF
the deed implies nothing. 1t had been
| given Mr.. Parsons to secure a loan and il
was necessary for his protection that he
| place IL on record There Is no danger
of the traction company being gobbled up
| by Mr.. Parsons for the amount of this
| loan Mr.. Myers said Under the terms
| of the contract the loan is not due unrn
| six months after the date on which IL
was made. and the traction company is
| protected by bond for title given by Mr.
Parsons to restore the title TO the trac-
| ton company when the loan Is paid
AS to the reasons for applying 70 Mr.
Parsons for the loan, Mr. Myers said
MI Parsons was thoroughly familiar
| with the property and was in better DO
| siuon to estimate its value than any one
else TO whom we could have applied
| hence 1t was perfectly natural that we
should apply to him. II is not likely that
we will let a property which cost us S21l.>
COO go for a little more than half that
| amount"
| Mr.. Myers was not willing to enter into
| any Of the details of the transaction.
II Is pretty well understood that the deal
| IS not or altogether, and that a consoli-
| dalton Is only matter of time Mr.
| Parsons, 1t is claimed, has controlling
| hand In the negotiations that have been
| IN progress FOR several months, and Il Is
| only question OF short while when the
| lines Will be consolidated under one man
agement. The negotiations have, In fact
| gone so far as to allow a practical under
! standing concerning the operation OF the
! various lines Ia order TO avoid taking up
] more tracks than absolutely necessary
and allowing an opening for any new line