The Savannah morning news. (Savannah, Ga.) 1900-current, 1904-04-06
To REORGANIZE
CAR COMPANY
ARRANGEMENTS BEING MADE
LOOKING TOWARD THAT END BH
PRESIDENT ROY c. FOSTER

Chamber of Commerce VIII Assisl
in the Reorganization PIan-Cred-
itOrs show Disposition to BE Len.
lent With Company and Grant EN-
tension of Time in which to Pay
Debts-RepOrts of Receiver Merrill
Galloway FiIed-Gives Minute
Statements of Receipts and Eek.
penditures.
1t is probable that the Georgia Car
and Manufacturing Company will not
be compelled TO answer the petition
of its creditors, and that within an
other thirty days the company viii be
again on its feet and able TO dis
charge all Of its debts. This is the
bright outlook given in the report of
| Mr.. Merrill P Galloway, the receiver
! appointed by Judge Emory Speer when
the petition of the creditors was filed.
The company win probably be re-
organized, and again put on a sound
financial basis. Mr.. Roy G. Foster,
president of the company, has been
busily engaged in making arrange
ments looking to this end for some
time, and he believes that there is
every likelihood of the plan being
successfully carried out.
He has written to the creditors of
the concern, asking for an extension
Of time, and the great majority of
the local creditors have granted the
request. 1t is believed that the others
viii prove as lenient when heard from.
Mr.. Foster wishes to get the company
free Of the court proceedings due to
the present receiVership, and then Sc
cure the reorganization with a capital
sufficient TO carry on the business
properly.
Chamber of Commerce Interested
In his efforts Mr.. Foster will be as
sisted by committee of the Chamber
of Commerce. That body, realizing the
value to the city of the car works
as a manufacturing enterprise, is anx-
iCus that 1t should be continued, and
will take up the question through the
committee on the promotion of public
interest. The matter has not yet been
referred to this committee, but win be
very shortly.
Mr.. Galloway filed his report yester-
day. The report is a lengthy one, and
gives in detail all the receipts and ex-
penditures of the company since its
affairs were placed in his hands. 1t
closes with the request that at least
thirty more days be given the COM
Pany before it is compelled to answer
the petition.
Mr.. Galloway took charge of the af-
fairs of the Georgia Car Company on
Jan. IA, the date on which Judge
Speer appointed him receiver. AT the
time he took charge a careful inVesti-
cation of the affairs of the concern
showed that its total assets were $751;
$3.50. Its total liabilities were $780,
00007, leaving a balance on hand for
its stockholders of $92, 522.63.
Had Contracts on Hand.
At this time there were number of
contracts on hand for box cars, tank
cars, logging cars, coal cars, and fiat
cars. For many of these the mate
rails were already on hand and the re-
ceiver believed that it was the best
thing for all parties concerned that
the cars should be completed. In this
way much higher price could be OBJ
tanned than if the raw materials had
been offered for sale.
The report shows that since he be-
gan acting as receiver. he has used
materials, both unfinished and finished,
with an aggregate value of $50, $50. II.
All of this has been paid for with the
exception of twenty-five coal cars. The
cost of manufacturing them was Sl4,-
495 81, and Mr.. Galloway makes the
conservative estimates Of the price
they should bring of $4,000. Not TO
have completed the cars would have
entailed a loss of S4.465.94.
Expenditures and Receipts.
Accompanying the report is an item
lied statement of all the expenditures
and the receipts of the company since
ii has been in his hands. A total of
s27013.23 has been expended and the
receipts have aggregated $50,574.94.
The receiver has disposed of materials
aggregating $2,702.41 and has in cash
on hand, or its equivalent, $23, 374.62,
with accounts receivable amounting to
$1S4.94, making a total of $23,561.56.
Mr.. Galloway states that he has
made several bids for contracts, but
that Northern and Western concerns
have underbid him, owing to circum-
stances. In one case, however, his bid
was within IS of the successful one.
In closing he states it is probable that
a contract will be awarded the COM
pany by the Southern Railway, as
that corporation has always favored
home industries, and the Georgia Car
the quality and character of work re-
quired
1t is that this contract may be Sc
cured and carried out that he asks for
an extension of time. Judge Speer
granted the request and the company
need not answer to the petition of its
creditors until May s. The outlook is
that by that time 1t will have so far
recovered as to be able to continue
business.