The times. [volume] (Richmond, Va.) 1890-1903, 1892-03-17
Published By the Olcott Commitiee-Deikils
or the Plan-Basis of Exchange
Of Securities.

bearing interest from March. 1892, with
coupons payable quarterly on March lst'
June lst, September lst and December ISL;
ten millions Of which are not 10 be used
for reorganization purposes. but only 10Y
the acquisition Of additional prop
fered per cent. stock. nOn-cumula ave
$40 900 000 A vote OF the majority OF pre-
ferrei stock is requisite 20 authorize any ad-
dltOnal mortgage on the property covered Dy
first mortgage. Common capital SUCK,
$4,000 O00 making a total capitalization OF
$3.50. 0OO.0 900. This total capitalization IS 20
cover the securities of the Terminal COM
pany. Richmond and Danville ana East len;
nessee in the hands OF the public and owned
and controlled amounting to s39l5i2,lOl' e1-
elusive of car trusts.
THE PLAN.
& The plan provides for the retirement OF eA,
isting car trusts amounting 70 s2Sos'oof, . auu
the floating debt to S6,3lOOOO Inc pIeeonO
fixed charges including car trusts, amount 10
s0474s37 against net earnings, 90 100.
The fixed charges under the proposed plan'
when carried out Will amount TO S1,4OO'UyJ'
to which should be added the rentals Oh the
Cincinnati Southern. Sl.OOOOOO ana tno
North Carolina railroad. S2OO,gvo' haAlnB ~
tal fixed charges s7.6C0.000. This leaves ap-
parently u 100. 900 in sight for DIVIDENDS on
the new per cent. preferred stocA.
The CENTRAL LITIGATIoN.
The committee calls attention to the fact
that in view OF the pending litigation Affect
ing the Central Railroad and Banking Com
many of Georgia. and of the questions wnlch
are before the courts and undetermined te-
specting the existing lease. ana consiueIih3
the legal difficulties attending the cohsoiuulh-
tion Of that compan5 ? il has fOundlt advisable
10 make no provision for the present tor
taking up the outstanding stocks ana secure
ties If the Central and Banking Company OF
GEORGIA. but the interests OF the kichmona
Terminal Company IN those STOCKS anu 81
curitles will Yest in the new corporation anu
form a part of the security for the new hist
mortgage bonds.
WHAT Is CONTEMPLATED.
I. 10 contaminated by the plan that the
rieIts and interests Of the East Tennessee
Virginja and Georgia Railroad Company III
tbe securities of the Alabama ana GIeHI
Southern Railroad Company lhmlteu)' tho
Alabama and Great Southern railroad ana the
Cincinnati. New Orleans and Texas IacIhc
railroad shall be subjected To tue lien OF th9
now first mortgage. that the satisfaction alu
5iscbarre of the Richmond Terminal col
lateral trust per cent. mortgage VIII De de-
farred until the collateral deposited 10 secure
Ionds issued Hereunder may, III tue
Indictment of the committee. be ulrec1y SUI
iected 10 the lien OF the new hrst ihoII
In the opinion of the committee the con-
centrntion OF the numerous corporations uh-
der one management will result IN large
reduction in the expenses and correspond
inc increase in the net earnings. Inc phn
makes due allowance for requisite improve
ments and betterments during the next Two
wears the addition Of which Will result III
material reduction Of operating EXPENSES
EXCHANGE OF SECURITIES.
The committee is 10 name the first board OF
directors of the new corporation, whicu WIZ
| he called The Southern Railway COMPANY.
In determining the basis OF old securities LOT
new the committee has endeayored 10 e1er1
! n;sa absolute impartiality and has reacheu
! tiis conclusion after careful study or the
merits of each security The terms upon
/ which the present securities are 10 De GA
! cbonced for those of the new company can
NOT he set forth in the limits OF TINS summary
/ ae tbev oc ,upv nearly score OF pages IN the
! ,ononIlet copv Of the plan. An important
feature OF the plan IS the rights Whlch arr arr
oiven To the holders OF iermlnal common
and nreferred stocks and collateral trust PEI
cent bonds 10 suD5crlDe 10 lHo ee0u'''0 -
the new company.
/ RIGHTS OF STOCKHOLDERS.
Each holder of one hundred shares or those
,4acLs ond GOO bonds il entitled 10 sub.
| scribe N 600 t. the cash fund OF el4ooo3io
which is necessary to meet the cash re.l
ments of the plan. For such suoscrlplion q.
| - zoo they will receive S2,OOO OF new pei
cont bonds and 500 of new preferred STOCK
Holders of less amounts than one hunure1
chores of stock and $4,000 bonds may suD
scribe 10 the new securities IN the same pro
nortion. A bankers syndicate mas peer
formed which has guaranteed the entire SUI SUI
scriDtion The organization IS being enecte'
tbro,,gh the Central Trust Company or New
York. -,..,,.,.s
T., frrtherance of this general plan OF reor
,anization and placing the new consolidate
nronertles under management approved D.
The Olcott committee Alr. John II. lhlhh
this afternoon resigned tno ~ .-',,,,,5,,
10th the Terminal and Danylje coulpa,nle
and Mr. NJ. q. Oakman was elected preslden
nj the same companies III his steau.
Mr. Oakman had already been made cnalI
man of the board Of the Last tennessee
VIRGINIA and Georgia Company III piaee
General Samuel Thomas resigneu' anu III VI
resicnation of Mr. Samuel VI. FELTON, pres
resi- Is f hat company. is expected tomorrow
MR.. oAKMAN's ELECTION.
Tho election of Mr.. Oakman gives not onl
oreat satisfaction 20 the street IN Ne
SorE Int will be welcomed by all OF u
ae;.,ols and employees OF the banvlle Con
,,,.,'y 70 whom he was SO fayoraDly known q
80 nresjdent before he left that company i'
service as president OF the Cehtral
New Jersey. A.. Do,,,.;l.o -,
,ro-,,iroI boards and Mr.. II. G. fahnestocl
re'resenting the First National BANK part
has been elected upon the DanYnle DOaT
ai.o The new consolidated company VIII
nr,,anized under the charter oil the Nashin
? ION and ONO. and will be known as the oou'i
ern Railway Company.
5 ppRsoSNEL or THE BOARD.
The nersopnel Of its board has not yet pee
,,IiIIes,sd ne INIT il is understood that 1t Will
I rt cbor,cter TO merit confidence IN the lud
oio,,s and faithful management 0l the pro-
ort;as When it is organized the DanNill
and nd Terminal board will not DO enecti'
,. bodies.
q orAPANTEED SUBSCRIPTIONS.
Tho subscriptions to the fourteen m
,;on Eve hundred and eighty-eight thousar
2 ~ bnrdred and forty dollars cash innd n
So SIN 1-ode by guarantee syndldate. whl'
$ 1artokes 70 purchase all the securities allc
0 .nI fir that fund which may not be taken
.ya .Su Ta.rr,;naI stock and bond holders who a
sno sIo, an,itlad to subscribe therefor. Amor
t,9' iIs' ',,1srontee syndicate are found not Oh
. ,i,s IL First National Bank. which Is tower
Z s,"encth Of itself. but Winslow, Lanier X C'
4 Tassrs i kennedy Tod Co.. with who
o ~ "a believed that Brown Brothers are assc
- ;e,ed and others of the most prudent al
'- 10 financial establishments III New York.
IS prsrRrBur1oS or NEW SECURITIES.
u Among the securities Of the existing col
y NAMES nroylded for in the scheme the folio
~ 10 which are we'll known aud held in {
A. c,~e,.t, g. aach 9lO0 OF the Old reeeive in [