The morning news., 1892-03-17
OLCOTTS PLAN GIVENOUT
TERMINAL SECURITIES TO GIVE
PLACE TO NEW ONES.

cent. 0OuOSs > 0lOsOOOiOOO EreI6rreQ
8 Per Gent. Stock and S1Io,ooo,ooo
In Common Stock.
NEW York, March 16.-I returned here
last night from the south, and from the
hour OF my arrival have devoted myself to
ascertaining the true inwardness of the
Terminal situation. fail to discover the
slightest trace Of confirmation Of the big
story with reference to the Baltimore and
Ohio having made wholesale scoop of the
Terminal system. In fact q man said TO me
to-day: THE reporter who got of that
special is entitled to the palm for enterpris-
ing journalism. provided the story be true; /;
and il not he ought to have q chrome for
exravagant imagination"
But the long-looked for plan OF the OIcott
committee, altered and amended to fit the
exigencles of changing conditions. Is at last
out. 1t was given to the press about 5
o'clock this afternoon. II is too voluminous
togive you anything but the briefest sum-
mary Of it. The following is synopsis
"The Richmond and West Point Terminal
Railway and Warehouse Company re-
organization committee, consisting Of
F. P. Olcott, Oliver H. Payne, Fred
erick D.. Tappen, William H. Perkins and
Henry Bulge. to which has been added H.
c. Fabnestock and J. Kennedy Tod, and of
which 6. s. Ellin is secretary, publishes to-
day its plan of reorganization.
THE NEW SECURITIES.
'The plan provides for an issue Of per
cent. first mortgage 35-year gold bonds, in
terest from March, 1892; coupons quarterly;
March l, June /, Sept. and Dec. i S10,-
100000 OF which are not to be used for re-
organization purposes. but only for the
acquisition of additional property: a total
of $40 900, 900, and preferred per cent.
stock, noncumulative, $40. 900 900. A vote
Of the majority OF preferred stock is requi-
site TO authorize any additional mortgage
on the property covered by the first mort
gage There is common capital stock of
SllO 900, 900, making total capitalization
Of $3.50, O,OOO, 900. This total capitalizationkis
to cover the securities of the Terminal COM
pany, Richmond and Danville and East
Tennessee, in the hands of the public and
owned and controlled by the Richmond
terminal Company, amounting to 1884,
512, lOl, exclusive of car trusts. The plan
provides for the retirement of existing car
trusts, amounting to $780, ,564. and the
boating debts, amounting to $6,310,0O0.
THE FIXED CHARGES.
"The present fixed charges, including car
trusts, amount to S9,474, ,S37 against net
earnings Of SS.744,7 ,736. The fixed charges
under the proposed plan, when carried out
will amount to So, 100000, to which should
be added the rentals Of the Cincinnati
Southern ($1. 900, ,UO0l, and the North Caro-
lima railroad 1920, ,000) making total fixed
charges 81, 5000 This leaves apparently
Sl,l00,OO0 in sight for dividends on the new
per cent. preferred stock
THE CENTRAL LEFT OUT.
''The committee calls attention to the fact
that in view of the pending litigation
affecting the Central Railroad and Banking
Company OF Georgia. and of the questions
which are before the courts, and undeter-
mined respecting the existing lease, and
considering the legal difficulties attending
the consolidation of that company, it has
found 1T advisable to make no provision for
the present for taking up the outstanding
stocks and securities of the Central Rail-
road and Banking Company of Georgia but
the interests Of the Richmond Terminal
company in those stocks and securities will
vest in the new corporation aud form
part OF the security for the new first mort
gage bonds. 1t is contemplated by the plan
mat the rights and interest of the East
tennessee, Virginia and Georgia Railroad
company IN the securities of the Alabama
breat Southern Railway Company dim
.SVuii Ouo hldDdula CTT6aD railway
aud the Cincinnati, New Orleans and Texas
Pacific railway shall be subjected to the
Hen OF the new first mortgages that tho
satisfaction and discharge Of the Richmond
Terminal collateral trust per cent mort
gage will be deferred until the collateral
deposited to secure the bonds issued there
under may, in the judgment of the COM
imlltee. be directly subjected TO the lien Of
The iirst mortgage.
REDUCTION OF EXPENSES.
In the opinion of the committee, the con-
Centration of the numerous corporations
ulder one management will result in a large
ieuuctlon in the expenses, and a corre-
'ponding increase in the net earnings.
1he plan makes due allowance for reQui-
a'e improvements and betterments during
Ne @ next two years, the addition of which
NAlresult in a material reduction of operat-
s9g expenses The committee is to name the
t1 MS1 board OF directors OF the new corpora
Hyon, which will be called "The Southern
tAuway Company" In determining the
ass OF old securities for new, the committee
s.S ss endeavored to exercise absolute Impair
saity, and has reached this conclusion
@ rVer careful study of the merits Of each
mOurlty. The terms upon which the
resent securities are to be exchanged
VI those of the new company
~unot be set forth in the limits of this sum-
~ - ehoJ OCCupJ HSdll1 SCOTe OL pdSes
,'ue pamphlet copy of the plan An impor-
s,a uI feature Of the plan is the rights which
rsglven to the holders of Terminal COM
u s. and preferred stocks and collateral
' s' per cent. bonds to subscribe to tine
InIiltes of the new company. Each
rsr OF 100 shares Of those stocks and of
,"VV0 bond is entitled to subscribe 81 600
MIL Inc cash fund Of $14.5S8 GAO,
@.s Uu Is necessary to meet the
~ requirements of the plan.
c,s sVch aa subscription Of 81, 600 they will re-
i,N tE,OOO OF new 4 per cent. bonds and
ID. WI ~, new preferred stock. Holders of
h 0Sa MOUNTS than 100 shares of stock and
e,,i,i ytI oond may subscribe to the new se-
En5SS E,iteS IN the same proportion. A bankers
ana ,sa1e e has been formed, which has guar
RsS'l. R1 the entire subscription. The reor-
CsS,saIion On Is being effected through the
al Trust Company of New YORK;"
OTHER NEW DEVELOPMENTS.
ANY, entirely apart from the plan, there
ia, q. and new developments in the stua-
CUM " extraordinary interest. Matters
nsosii ns'lated this afternoon when, at a called
Rl%ung OF the Terminal and also Of the
lnral aud Danville directors. John II.
Of i@,lt rendered his resignation AS president
eleota.5S companies, and w. G. Oakman was
hin 70 the double position TO succeed
allv ouch an important occurrence natur-
be-, !. Quilted 10 some explanation. The
1at can furnish is about as follows:
oftiS Co Seh days ago r. 7. Olcott, president
II wis, tehtral Trust Company, and like
II reorgsn,urrIIhlan OF the Richmond Terminal
b.