New-York tribune., 1907-08-30
BONDHOLDERS READY.
Plan Fight for Interest on Central
of Georgia Issues.

Holders of Central Of Georgia Railway income
bonds held meeting yesterday and appointed a
committee TO take steps for the protecuon OF 'he
bondholders and TO determine methods TO compel
full interest pavments on all three classes of in
come bonds The meeting was the result OF the
action of the Central OF Georgia Railway directors
last week passing interest the third income
bonds and reducing the interest on the seconds
The bondholders, who met yesterday represented
only the New York interests, but ii is UNDERSTOOD
that they will Join forces with the Southern inter
ests. who recently appointed committee heaoeo
by Frederick w. Scott, of the banking hrrh OF
Scott & Stringfellow, OF Richmond, Va Inc Iol-
lowing committee was appointed: c. Altschul OF
Lazard Freres; R. Walter Levy. of Maitland, Cop
pell & Co: Ernest Groesbeck. of Groesbeck & Co.;
Frederick ". Scott chairman of the southern
cornrnittee1, and ]. r. Minis of Savannah.
representative Of Of the bondholders said
after the meeting that counsel had been retained
and that every legal step possible to protect the
rights of bondholders would be taken, and that
the status Of the bonds would be settled now ana
forever" The fight question OF principle
he said as well as TO determine the amount OF IN
terest payment on the bonds. and would be fought
TO finish He added that there would be no
compromise of any with the company even II
the directors offered 10 pay the ful interest on
the bonds this year. Speaking OF the earnings ne
declared that the railway company and the Ocean
Steamship C-onpauy which owned the Central Of
Georgia had earned twice the money necessary
to pay the income the three classes OF oohoS
and the question as 10 whether II had done SO was
simply Of bookkeeping.
4 banker who is largely interested In the move
raent enforce the payment OF the interest OH i7
bonds. said yesterday:
I'VE shall insist upon the full per cent interest
payment on the second and third incomes. and If
necessary shall institute legal proceedings demand
ing an accounting from the company 10 ascertain
why this interest should not be paid.
THE earnings Of the company for the last hscai
wear show that interest on all three classes OF In
come bonds fully earned. but within the last
month of the year il appears the company chaiseo
off a large amount for improvements and better
rlents which We contend was excessive. The rail-
road proper for the last fiscal year actually had
about 900 applicable to interest the income
bonds but this was written down. leaving only
about s4s0Oo0 available, and on the basis of earn
ings as expressed by the latter figure the interest
on the third incomes passed and on the sec
ond reduced. Our firm is largely interested in the
second incomes. and We would not mind SO naucn
reduction in interest them for one year. but
we want assurances as TO what action is likely 10
be taken in future years.
The earnings of the railroad proper as have
stated were sufficient the full income in
terest charges. but aside from that the Ocean
Steamship Company. owned by the Central OF
Georgia, earned enough on its own account 10 meet
the income bond interest. and this has not been
figured in at all"
II was learned yesterday that at least two propo-
sitions were made to the bondholders by the con-
lieu OF the full interest on all three classes or
bonds, but that neither of them was acceptable to
ii was said called for the issue of cent bonds
to for three years and the otheF Tor an ISSUE
Of notes.
was purchased a few months ago from the South
ern Railway Company by Oakleigh Thorne; presl-
dent of the Trust Company Of America, and Mars
den J. Perry.