Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-03-17
SOUTHERN R'WAY co.
This Is the New Title Of the Rich
mond Terminal.
THE REORGANIZATION EFFECTED.
Outline Of the Plan Agreed Upon-The
New Onicers-Ths Terms OF Ex-
change OF Securities.
[By telegraph to the Dispatch.l

ings OF the Richmond Terminal ana Ricn-
mond and Danville roads were held to-
day, and the developments which nave
been expected for some time transpired.
John II. Inman resigned his position as
president Of the Terminal and Danville
companies; r. L. Wilson resigned as d.
rector of the Richmond Terminal. and 5.
N. Inman resigned as director OF the Rich-
mond and Danyille. Then Walter q.
0akman was elected president OF the
Richmond Terminal and Richmond
and Danville companies; John II.
lnman was reelected to succeed II.
u. Wilson as director OF the
Terminal, and III. 6. Fahnestock, the wee
president of the First National Bank. was
elected a director Of the Danville in place
OF s. NJ. Inman. After these changes had
been made. the report of the Reorganiza-
tion Committee was read and adopted. Inc
Reorganization Committee consisted OF
Frederic Z. Olcott, Oliver II. Payne, Fred,
eric ID. Tappen. William H. Perkins, and
Henry Bridge. and also these gentlemen.
who have been added: Messrs. III. q. Fab
nestock and J. Kennedy Tod.
THE PLAN ADOPTED.
The committees plan of reorganization
which was adopted provides for an issue
OF 4 per cent. first mortgage thirty y-nye-
year gold bonds, interest from March.
1872, coupons quarterly, March lst. June
LIST, September lst. and December lst;
zen millions of the amount not TO be used
for reorganization purposes, but only FOR
the acquisition of additional property-a
total of $l70,0OO.OOO. Preferred per
cent. stock, non-cumulatiye, $4,000.
vote of a majority of the preferred stock
10 requisite to authorize any additional
mortgage on the property covered by first
mortgage. Common capital stock, SllO,-
900, ,000, making the
TOTAL CAPITALIZATION $3.50, 100000.
This total capitalization is to cover the
securities OF the Terminal Company, the
Richmond and DanvIlle, and the East Ten.
nesssee, in the hands Of the public. end
owned and controlled by companies.
amounting to 1894 .5O3. .l0l, exclusive of car
trusts. The plan provides for the retire
ment of existing car-trusts amounting TO
g, 1863, ,56i. and of floating debts smount-
ingto SC. $40, 600. The present fixed charges,
including car-trusts. amount to $9,474,o37,
against net earnings of SS,74,730 The
fixed charges under the proposed plan,
when carried out, will amount to S6,400,-
900. to which should be added the rentals
Of the Cincinnati Southern (S1,0OO,0O0)
and the North Carolina railroad (f260, ,O00),
making the total fixed charges S7.660.00
This leaves apparently Sl,l00,OOO IN sight
for dividends on the new per cent. pre-
ferred stock.
THE CENTRAL OF GEORGIA.
The committee calls attention to the
fact that in view of the pending litigation
affecting the Central Railroad and Bank
ing Company OF Georgia ana OF QUESTIONS
which are before the courts undeter-
mined respecting the existing lease, and
considering the legal difficulties attend
ing the consolidation of that company, 1t
has been found advisable TO make no pro-
vision for the present for taking up the
outstanding stocks and securities of the
Central Railroad and Banking Company of
Georgia, but the interests OF the Rich
mond Terminal Company in these stocks
and securities will best in the new corpo-
ration and form part OF the security tor
the new lst mortgage bonds.
The EAST TENNESSEE, &C.
II is contemplated by the plan that the
rights and interests of the East Tennessee.
Virginia aud Georgia Railroad Company IN
the securities of the Alabama Great South
ern railway limited the Alabama Great
Southern railroad and the Cincinnati,
New Orleans and Texas Pacific railway
shall be subject TO the lien of the new
first mortgage: that the satisfaction and
discharge of tho Richmond Terminal col
lateral trust 6 per cent. mortgage will be
deferred uutil the collateral deposited TO
secure the bonds issued Hereunder may.
in the Judgment of the committee. be
directly subjected to the lien of the new
first mortgage.
THE SOUTHERN RAILWAY COMPANY NOW.
In the opinion of the committee the con-
centration of the numerous corporations
under one management Will result in a
large reduction in the expenses and q cor
responding increase in the net earnings.
The plan makes due allowance for requi-
site improvements and betterments during
the next two years, the addition
of which will result in mate
rial reduction of operating expenses.
The committee is 10 name the first board
OF directors of the new corporation. which
will be called the Southern Railway
Company. In determining tho basis of
old secur ties for new the committee has
endeavored to exercise absolute impartial
ity, and has reached this conclusion after
a careful study OF the merits OF each secu-
rity.
TERMS OF EXCHANGE.
The terms upon which the present secu-
rites are to be exchanged for those of the
new company cannot be set forth In the
nearly score Of pages in the pamphlet
copy of the plan. An important feature
of the plan are the rights which are given
to the holders of Terminal common
and preferred stocks and collateral
trust per cent. bonds to sub
scribe to the securities of the new
company. Each holder of 100 shares OF
those stocks and of 1000 bond Is en-,
titled to subscribe 81 900 TO the cash fund
of SI4.5Ss. $40, which is necessary to meet
the cash requirements of the. plan. For
such subscription OF $1,000 they Will re;
ceive 81, 900 Of new per cent. bonds and
800 of new preferred stock. Holders OF
less amounts than 100 shares of stock and
a 81 900 bond may subscribe to the new
securities in the same proportion.
PROVIDERS OF The CASH.
A syndicate. headed by Hallgarten IL
Co., has been formed to provide the
SI4, ,5SS, 900 in cash necessary to insure the
success of the plan. but the stockholders
aud bondholders will be given the priyi-
lege to subscribe for the new securities on
terms that will make their rights very
valuable.