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make it a first class and paying road, would cost between $400.00 and $500.000 - Now if the Stockholders were to attempt a loan in such a state of things, it is manifest, that they could not procure it, and yet some one must take the responsibility of borrowing enough to run the road to Savannah, which as appears above will cost, including Ferry Boat $243.830 It is clear then that the creditors must authorize the Stockholders to borrow the money necessary by accepting the proposition of the State, or they must take possession of the road, and there are three ways in which they can do so_ 1st Foreclose and sell under 1st mortgage_ That would probably result in paying the lien of the State and perhaps the arrears of interest_ for it must be kept in mind that the purchasers would have to expend some $400 to 500.000 to put the road in order, the rest of the creditors and the Stockholders including City and State (for the latter is a large Stockholder as well as creditor) would lose all_ This policy would hardly suit the creditors for they would perhaps then lose interest in arrear_ The second plan would be to take possession of and run the road, for the mortgage provides for this- but they would have to borrow the money necessary to run the road at all_ to pay up the State lien interest in arrear before getting any for themselves, and then turn in all surplus in the liquidation of their debt, and would be liable at all times to [?] to a sale by the next lien creditors_ The 3rd and only remaining mode is the plan of preferred stock tendered by their debtors_ This makes no change in the security of their debt
Year of publication: |
1863
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Authors: | Charleston and Savannah Railroad Company |
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