The times. [volume] (Richmond, Va.) 1890-1903, 1892-02-13
FIVE HUNDRED MILLIONS.
Provisions Of iaa Great Terminal Re-
organization Scheme.
TIE WORK OF THE OLC0TT CONNITTEE
All of the svstcms 60 bo Consolidated Into
one GRAND Company Operating Nearly
Sine Thousnnd Miles OF Railroad.

NV YosS Feb Special Enough
has leaked out OF the impending great con-
soaaat.on scheme Of tho Terminal railroad
properties Co Justify me in saying that the
substantial features will be rs follows
Livery railroad in the whole system inciud-
ln- uo, only tho Richmond and Dauuie and
its leased lines. the Georgia Central and Its
leased lines. but the East Tennessee Virginia
and Georgia and its leased lines extending
o. New Orleans. VIII be consolidated into one
grand company. operating nearly nne thoH-
sand miles Of railroad under one manage
ment. whereby it is expected facilities OF
transportation Will bo greatly increased and
expenses reduced 20 tie advantage not only
O. tie public but of tie propnetors.
1Hr orrrrI INVOLVED.
This gigantic organization, the greatest
ever attomoted in auy country. will involve
tie output oftw. hundred and twelve mil O.
lions five hundred thousand dollars of four
per cent. first mortgage gold bonds. sixty-two
millions. FIVE hundred Thousand dollars Of
four per cent income gold bonds. seventy-fve
rrN.on dollars of five per cent. preferred
stock. one hundred AID lity million dollars
@. common stock.
Details of auuortonmcnt OF these securities
anon. che present security holders las not
been made public. but 10 is understood that
ir every particular all have been provided for
sud none omitted.
THE ADVANTAGE GAINED.
ThebeEetis that fixed charges viii be several
u hons less than the net earnings on the sys-
Fraf ia rffrnlr "a
bonds n.l sell approximately o. the prices of
Gle li hest per cent. bonds on the market.
nr that the low interest upon the income
bonds Vil almost certainly be met. leaving a
reasonable hope for dividend on the pre-
.e-el so elk. the amount of which Is not so
ar-e as to preclude material heueht 70 the
O.. .um0n stock % be derived from the man
arement. which by accomplishing reduction
Ot .ulv per cent. upon the earnings would
make the preferred stock certain dividend.
paving security with q surplus TO the common
stock.
Arp0Br0INNTSr OF THE SECURITIES.
The great difficulty has been 70 apportion
these securities among the holders OF secur-
ties in the constituent railroads In such
way as 90 satisfy conflicting ideas of compar-
atiye values. but as iar as the particulars are
known ail seem satisfied that the Olcott COM
mittee have been actuated by wise appre-
lenslon of the iacts of the case. and sincere
desire o. do impartial Justice To al Interested
OF course there Will bee some who viii be
disappointed. but the ownership Of a security
which VIII find present. ready market Will
largely compensate for the loss of future pos
slbillties
WISELY pRrrARED sCufNE.
This scheme is most wisely prepared To
meet the views oI all classes of investors.
from the cautious lirst mortgage. rock-tottom
man to the sauguiue specllatOr. who Is look
ine for future developments and believes IN
the pr spects of the South.
Your Correspondent has seen some of the
proposed distribution of securities. but these
are liable 90 change and 10 IS MT until all
parties can be heard that any particulars IN
this respect win be given out.
It is wonderful that there has been so
much appreciation and so little kicking The
achievement of this reorganization will reflect
the greatest credit on the gentlemen who Will
have accomplished 1t.
pIIcFs OF THE sECUnITIEs
The discussion on the street of the probable
prices of tine proposed securites make the
frsts ~ 90 15. incomes from 400 20 90 the pre-
isrrel from 70 10 80 and common stock lO %
ln order 20 raise thirty millions of cash re-
CURED t0 retire the floating debt, equipment
bonds and general expenses syndicate has
cen formed which Will take "a sufficient
amount of stocks and bonds to bring about
these prices.
The market seems 90 be waiting with IN
terest the launching of this new financial
ship.