The morning news., 1897-01-03
WILL BE LIVELY BIDDING.
Tsyo FACTIONS SEEKING CONTROL
OF THE ELECTRIC RAILWAY.

The Majority and Minority Bond
holders VIII Compete For the Pos
session of the Propcrty-The First
Has About S43O,O0O and the Second
About $I25,OOO of the SGO0,OO0 of
Donds-The Nashville People Rer-
rescnted--Air. Parsons May Put in
a BId-'rhc Successful Bidder Must
he Ready TO Cough Up" $SO,OOO.
The sale Of the Electric Railway proper
~, by order of the United States court
will take place at noon Tuesday in front
of the company's Office at Gwinnett and
Price streets. United states Marshal j. d.
Harrell will conduct the sale, which prom
ises to be interesting.
The indications are that the property will
bring good round figure. At any rate
there will be two active bidders in the
field, and perhaps three or four. The ma
jority bondholders, consisting of the
Nashville bondholders and the Collins par
~ of the Savannah bondhoders have form
ed a syndicate, holding, it is said, nearly
$4,000 of the bonds, and will make a
strong bid for the road. Mr.. 7. W. Wrenne
and Mr.. j. H. Fall of Nashville, have been
an the city several days. Mr.. j. NJ Head
and Mr.. Van Lear Kirkrnan, also of Nash
ville are here and are understood to be in
terested in the matter. If the Nashville
people hold something over one-third OF
the bonds, it is not impossible that they
may make an Independent bid for the
property. They appear, however to be
acting in perfect harmony with the Col
lins party.
With MIR. j. S. Collins, who is said to hold
about 100000 of the bonds, are Mayor Her
man Myers, who is also said to be large
holder. Hugh Logan, Robert M. Hicks
Thomas Nugent, Jacob Pausen. J. r. An
derson, w. w. Mackall John F. Gaynor,
C. C. Ely, d. f. Jack and others The com
bination is a strong one.
The minority bondholders, who were op-
posed to the plans of those who control
the majority and on this account refused
TO go in with them, have been actively al
work within the last few days, and they
announce that they are going to take al
proper steps to protect their interest in
the property. They have a committee
representing them composed of Messrs.
II. C. Cunningham, II. p. Smart, Lee Roy
ests of all who are in the minority syn
dicate have been entrusted to these gem
tlemen, with directions to fully protect
them.
The minority bondholders have in
their pool between 100000 and
S125000 par value of the bonds,
and they say they are in as good,
If not in a better position TO purchase
the property, than the majority bondhold-
ers, who have the control of more than
100000 par value of the bonds.
The work on behalf of the majority bond
holders. it is said has been largely done
by Pres!dent and Receiver Collins, ana
Mayor Myers, and it is stated by one of
the minority bondholders that the major
fty entered into an agreement to give
these gentlemen $3.50 on each bond for
their services in the matter.
1t is reasonable to suppose that Mr..
George Parsons, who controls the City
and Suburban and Savannah Thunder
bolt and Isle of Hope railways, will be
represented at the sale and that his rep
resentative will be prepared TO make
stiff bid for the property. President Col
lins once closed a deal with Mr.. Parsons
for a consolidation of the Electric railway
property with the lines controlled by Mr..
Parsons upon what Mr.. Collins considered
very satisfactory terms. His board of III
rectors, however, rejected this deal, ana
they have doubtless regretted their act
thousands of dollars by il. by securing
the Electric railway Mr.. Parsons would
then control all the street railway lines
in the city and would be saved from the
danger of future rate wars with one cent
fares.
The total bonded Indebtedness of the
company is S6OO.00O of which $50 900 are
first mortgage bonds and $4,000 underly-
ing bonds, which declined to come into
the reorganization after the consolidation
of the Savannah Street railway with the
Electric railway. The debts of the com
pany have been reduced by the receivers
to $lS,000.
The majority and the minority syndi-
Gates will both be well represented at the
sale, and they will both be prepared to
bid, which means that each will have to
be ready on the spot to put up certified
check for $40, 900, before the bid is accepted,
and ready also to put up another certified
check sufficient to make the amount $780,
600 before the bid will be considered by
the court. Both sides say they will be
there and ready to comply with the terms
of the sale.
It is a matter of conjecture as to- what
the property will bring The bonds have
been selling on the market recently at
about twenty, but It is expected they will
pay out considerably more than this Those
Interested do not think any bid will go
UP as high as 100000, which is half the
amount of the outstanding bonds 1t has
been calculated that the court expenses
and preferred claims. together with the
amount necessary to pay off the out
standing $4,000 of first mortgage bonds,
which never went in under the reOrganiza-
tson plan, will reach about $4,000 and
that they will not go over $4,000 at the
outside, which is the amount required to
be deposited in the registry OF the court.
The road and appurtenances, therefore,
would have TO bring $4,000 in excess of
this amount in order to pay the bond
holders 33ls per cent on their holdings.
BANK CLEARANCES FOR '06.