The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-05-22
TERMINALS: NEW soaRMF. -
Another Issue of Stock and Bonds
Contemplated.


NEW York, May 2l.-There has been
much talk and considerable mystery for the
past week with reference to Richmond
Terminal affairs. The street has been puz-
zled, and, as usual Iunder such circum-
stances, the mystery has proven a bull
argument Nothing reliable has been OBJ
tainable until day. The directors met this
morning, and President Inrnan submitted
financial plan for the consideration Of the
management. II was unanimously adopted.
In its analysis it amounts TO this: That
means be provided for the total extinguish-
ment of the floating debt, leaving balance
In the treasurer of the companysoGover ST.
100000 cash. 1t provides for the offer of a
subscription privilege to stockholders of
record June 2, which, according to the
opinion of leading directors, is worth at
least ~ per cent. to said stockholders upon
their holdings on that date.
THE INCREASE JUSTIFIED.
1t contemplates the issue Of $40, ,000, 900 Of
additional stock and about g., 500, 900 OF col
lateral trust per cent bonds, but this in
crease of capitalization is thoroughly justi.
fed by the recent acquisition of the East Ten
nessee, Virginia and Georgia and Georgia
Central securities. which have been bought
and will be paid for out of this new issue of
bonds and stock. This plan completes
beyond peradventure the permanent control
OF all the subordinate properties embraced
in the Terminal system. and goes further
toward solidifyiug the property than any
thing that has ever yet been done.
AN ADVANCE AND A SLUMP.
Wall street, in anticipation Of the publi-
cation Of this plan, was wildly bullish on
terminal stock, and put the price up to ISL,
the highest figure it has reached in twelve
months. When the plan became known
the fact that it involved an increase of stock
disappointed the street, and room traders,
who are always ready to run from any en-
largement of capital became bears on the
stock and simmered it down to 81, at which
price it closed. This reaction is regarded
by conservative operators as thoroughly
healthy, and it is predicted that when the
plan shall have been digested and thor
oughly understood the stock will be more
highly appreciated and undoubtedly COM
mand better prices.
INDoRsED BY THE DIRECTORS.
The plan is substantial move in the
right direction and commands the iudorse-
ment of the entire board of directors, as
well as the leading financiers of the street.
President Inman Is commended on all sides
for his able financiering in conceiving the
plan, and his loyalty TO the property aud
stockholders in securing its adoption. The
entire amount OF new stock to be issued has
been underwritten by leading bankers of
New York, and the commission al
lowed on it is only one half OF
one per cent, which is the smallest
allowance | have ever known on negotia-
tion of such magnitude.
While the board was in session consider.
ing this plan cablegram was received
from Patrick Calhoun in London saying
that an English syndicate has been formed
there Offering to take s25, ,000,0 900 of new
Terminal stock at 25 cents ON the dollar
less a commission, which offer was neces
sarily refused because of the adoption oi
the plan then under consideration by the
board. NJ Nv.