classes an exchange of their Bond for preferred stock, in the order of their several liens, postponing their own stock to the lowest class:--this proposition (which would have placed the road in the hands of the creditors) was rejected. The Stockholders then offered to give the creditors the choice of one half of the Board of Directors. This proposition was accepted and at a meeting of the Bondholders one half of the directors now in office were selected and nominated, and, in the fullest representation of stock ever had, duly elected.These facts are stated to show that the Board does not only legally and technically represent the interest of the Boardholders but they were actually chosen as to do by a meeting of creditors publicly held; and that John S Ryan is in no way authorised to represent them. It was next shown to the Bre: Maj: Gen Comdg that the Board were in possession of the rolling stock (never captured) which they can rent out to other roads (after reserving enough for repair work purposes) for $250 to $300 for day;--With this, and the earnings of the road to Edisto (where it can be carried in three weeks after a working force is organized) the rest of the road can be reconstructed, even if the company should be unable to raise other funds.It was further shown to the Bre: Maj: Gen Comdg that the mortgage creditors could not now take the road or sell it, because the intervention of the Trustees and a count of equity is necessary for either. If a sale was possible it would not pay the creditors 10 cents in the dollar, and if the road is simply held as at present it is at a dead loss of $300.
|Year of publication:||
|Authors:||Charleston and Savannah Railroad Company|
|Type of publication:||Other|
Charleston and Savannah Railroad Records