The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-11-27
NJ. & N. G. TO BEGIN ANEW
POSTS COMMITTEE PREPARING
TIE PLAN OF REORGANIZATION

Three Issues Of New Bonds, and One
Zach of Preferred and Common
Stock ContempIsted-Old Bonds Will
Be Redeemed Dollar for Dollar and
Stockholders to Get 20 Per Cent.
The Road to Be Extended to Atlanta.
Information received by the Savannah
bondholders of the Marietta and North
| Georgia railroad is to the effect that the
Post committee now has majority of the
stock and bonds in its bands and will pro-
coed with the reorganization of the road as
/ fast as possible. The members OF the re-.
organization committee are Il. A. V. Post,
chairman; Thomas Carmichael, Walter
| Stanton, E. Z. DenDiston and Newman
! Erb.
! By the agreement under which the bonds
are deposited the committee is authorized
to take legal steps to secure a sale Of the
property and are given full power 60 pur-
chase 1t as joint tenants in behalf of the bond
holders entering into the agreement. A
new company will then he formed to take
charge Of the road. discharge all existing
obligations not disposed of by the sale and
put the road into condition for successful
operation.
THE LINE TO BE EXTENDED.
The reorganization scheme coutemplates
the extension OF the Marietta and North
Georgia TO Atlanta, which will in all IkeIi-
hood be done. The road will either secure
terminus in Atlanta or a connection with
some friendly railroad system already haY-
ing terminal facilities there.
The plan OF reorganization is substantially
upon basis OF the purchase of the road,
including all the property embraced by the
several mortgages, for the benefit OF the as.
sentlng bondholders and the unpaid coupons.
IL 10 proposed to issue bonds to the
amount Of So 100000. face value, to run
nifty years, with interest at the rate of
per cent. per annum bonds to the amount
of $4,000 900, payable and bearing interest
at the same rate as the first issue, and Sc
cured by second mortgage upon the prop
erty; income bonds, non-accumulative,
taken at their face value. and preferred
stock to tho amount Of $780, 900, to have
preference over the common stock TO the
extent of per cent. per arnum; common
stock to the amount Of So, 800, 900.
THE DISPOSITION OF THE BONDS.
These securities ara to be applied as fol-
lows: OF the fret mortgage bonds $500, 900
are to be deposited with the Atlantic II ust
Company OF New York as a special reserve
fund for the extension of the railway from
W @ASAtaAtA oLA AOA biONAuiLA
proper terminal facilities. The balance
of the first mortgage bonds, or the
proceeds from their sale are TO be used to
liquidate the costs of the foreclosure pro-
ceedings and the expenses of reorganiza-
ton, including the amount necessary to be
paid out for the property and the satisfac-
ton OF existing liens. equipment obligations,
improvements and betterments OF the road,
and also for the retirement OF the bonds OF
the original Marietta and North Georgia
Railroad Company. These latter bonds are
prior obligation to the so-called first
mortgage bonds.
The "a, 900, 900 second mortgage bonds are
to be issued to the holde of the present
first mortgage bonds, dollar for dollar, and
for the unpaid matured coupons.
PREFERRED STOCK TO SATISFY CLAIMS.
The So, 900 preferred stock is to be
used in satisfaction of any obligations of
the company, in whole or in part.
The depositors of common stock will re-
ceive stock Of the new company to the ex-
tent Of rs per cent. of their holdings.
| The securities not otherwise disposed Of
are to be sold for the purpose of reImburs-
ing the committee for advances made to re-
pay loans and liquid ate obligations incurred
in the process of reorganization.
A syndicate is to DO organized by the
committee for the purpose of carrying the
reorganization scheme into effect