Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-01-13
Any MILLI0NSN II.
ot scheme for Reorganization Of
Richmond Terminal
st ~ ~ II ~ II'
OTHING LIK f 1T.
.oY. Cap'taiisation-Sew name
.r Charter.-Powerfsi financ'a'
Exchange of Securities.
m, ,el.rnph y Tho Dlspatch.l

lbs Telegraph " Nuo D'sP"'N'
yosx January IA railway
90 of unprecedented magnitude IS IN
n perfection. the full details Of
. ,,,ll be made public in few weeks.
ronine paper claims TO give the main
of the case to-day in advance OF the
-. ~ the Committee on kcorganizs-
Y.o Great scheme is the financial and
,sl reorganization Of the Richmond
West Point Terminal Railway and
.,ouse Company. Briefly stated. the
81 ,l,n. when perfected. will present
d,.a,ls: In the first place. new
...y wil be formed with charter
Qor.ne 70 20 act as q general pro-
sre company. like the present Iermi-
coopany. but also with power 10
.,e and manage its owned lines. For
ry-pose the charter Of q company
\ tbe Richmond, Danville and South
.ra Railroad Company will probably
CD.
..,yrrp ~ TuE STATE or vIEGISiA.
n. charter is under examination by
oonany's lawyers now. II was grant
, ,be State Of Virginia about four
AGO. II this charter Is unavailable
one will be obtained.
The now company Will then issue its
rites m exchange for those Of the
emf companies composing the Iermi-
system. The Terminal securities, as
,.anfiug the control Of the subordi-
roads. will also be exchanged. The
nal stocks and bonds will theng 60 into
treasury Of the now company.
i. thought and estimated that a
.lets exchange can be effected by the
nee bs the new company Of $751;
I'd of It's bonds and Sl3b. .OOO.OOJ OF Its
These figures at first seem stag
70 but when the capitalization Is ad-
I 10 the mileage II will be seen that
II the rate Of less than $4,000 per
riGGHsT THING IN AMERICA.
A., other section Of the country can
a similar proportion of capitalization
iaara a. this. the figures varying from
..D u.r mile IN the Middle States 20
.u per mile IN the Northwestern
le exchange Of the various securities
b component roads for those OF the
company Will in large part have TO be
rmucd by the equities OF each case
to some extent, from the market
This will also be IN the hands OF
J.c0tt committee.
Bgt there Will be an obvious advantage
e holder of any Columbia and Green
securities IN exchanging for the Sc
lr- "a the new company, which Will
,ied upon the European bOurses and
the advantage OF an international
set.
IHT PROCESS OF EXCHANGE SIMPLE
The process Of exchanging the securi-
Vii be also much slmphhed by the
that the Terminal Company already
all Of the Dagyllie stock, a majority
le Central of Georgia, and large por-
Of that of the East Tennessee Com
Ihe minority stockholders can
IN or not as they see lit.
be corporate existence Of Oil the rail-
will be maintained as long as there
Nv uuconyerted securities outstand-
iust as that Of the Richmond aud Dan
now is, although the Terminal Com
owns all OF the stock except some
hares. tho owners OF which are lost
ne stock with them.
oSE COMPANY INSTEAD OF THREE.
}ut the great advantage of the plan
Il the fact that instead of three COM
b, there wall be one consolidated COM
with one management TO operate the
e system. Tue saving OF expenses
he enormous. The clashing OF sepa.
managemtnts will be done away with.
the managers OF the road can tell
uut trouble Just what their income is
where II rs TO be applied.
li course such details as the interest
BE- new bonds are undetermined. The
VIII probably be Al or per cent.
Understood that "A powerful bankers
lcate has consented TO underwrite the
securities when issued, and II Is
ght tnat the whole scheme Will GO
lgh with as little friction "a can be
otrd OF a plan Of such magnitude"
MAJoKIIY or PROXIES SECURED.
vas announced to-day that the Olcott
mifce. IN charge Of the preparation
plan for the reorganization OF the
|mond Terminal finances, had secured
aalOTity of proxies from stockholders
b had been asked for preparatory TO
Ihmission of their scheme.