The daily morning journal and courier., 1907-09-21
CENTRAL OF GEORGIA R. R.
CONDITIONS IT FACES
Information of Interest to Many Local Bond
 Holders.
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holders of the income bonds of the Central of Georgia Railway Co.,, will be interested to know more definitely about the present situation confront | ing these securities About two and three years ago when this compact and well-managed railroad property of the south was making such marked strides in it's earnings and showing such large surpluses available for in- terest on the income bonds, these se- curlties of which there are three classes, became popular among cer- tadn New Haven investors and they were widely recommended by some brokers here to their clients.
 Since then, however, in common with other railroads of that section the Central of Georgia has entered upon a trying period, beset as it Is with enormous expenses due to high cost of labor materials and fuel on the one side, and harfassed on the other by a hostile administration and so- cialstic legislature These cireum- stances have resulted in greatly reduc- ed net earnings the last fiscal year which early threatened reduction of the interest to be paid on the income bonds. Moreover the road is in need of new capital for It's necessary de- velopment.
 There is this redeeming feature, however, in reference to the Central of Georgia Go. that for years past t 7 railway has built itself up and maitained it's lines up to high stand ard almost wholly out of it's earnings so that really 1t is not so poorly off as it would on first glance appear Its physical condition is excellent Fur thermore it has a very valuable asset in its ownership of the Ocean Steam ship Co.,, running between Savannah and New York, which Is heavy earn CT and has a large cash surplus. For this reason a great many holders of the income bonds feel that the man. agement should declare dividend on the Steamship company stock to make up for the temporary deficiencies of the railways income account. Attor- ney Arthur c. Graves represents sev- eral of the income bond holders of this city. He has made a careful study of the financial operations of this road for some years past. Last month meetings were arranged to be held in New York between the rail road officials and the income bond holders to discuss the financial needs of the property and the question of paying interest on the income bonds Mir. Graves was present at these meet ings upon the invitation of the Presi- dent of the Railway Co.,, Major J. F. Hanson of Macon, and also at request of firm of Richmond bankers, and took a prominent part in the discus sions.
 No agreement, or compromise was lreached at these conferences. Subse- iquently when the directors entirely passed the interest on the third in comes and reduced the rate on the seconds from per cent. to 3.73 pe1 cent several large holders of these bonds of New York and Savannah or ganized a protective committee to safe guard their interest They are pre- jparing to compel the manager to give an accounting of the large profits ot the Ocean steamship and to sue foi the full interest on their bonds. Th( lrights of the various parties interested are beset with some legal intricacie' and it's situation is becoming very in teresting. MT. Graves will go to New York this week to consult with mem bers of the protective committee and their counsel.