The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1892-03-17


Terminal and Richmond and Danville
roads were held to-day. and the devel-
opmenss, which have been expected for
some time, TRANSFERRED. John II. Inman
resigned his position as president of the
Terminal and Danville Companies, r.
I. Wilson resigned as director of the
Richmond Terminal and S M. Irman
resigned as director of the Richmond
and Danville.
Then Walter P. Oakm an was elected
president OF the Richmond Terminal
and Richmond and Danville Companies:
John Ill. lhman was elected TO succeed
X. L. Wilson as director of the Ter
minal, and III. G. Fahnestocko was
elected director Of the Danvillo road in
place of S. NJ. Inman.
After these changes had been made
the report Of the reorganiz ltion com
mittee was read ana adopted This
committee consisted OF Frederick p.
Olcott, Oliver Fl. Payne, Frederick ID.
Happen, William II. Perkins, Henry
Bridge, IL. c. Fahne Stoke and j.
Kennedy Tod.
The commit.ee's plan of reorganiza-
ton, which was adopted, provided for
an issue OF per cant first mortgage as
years gold bonds, interest from March,
1892; coupons quarterly, March /. June
l, September and December 1, ten
millions of which are not to be used for
reorganization purposes, but only for
the acquisition of additional property;
total OF Sl70,000,0j0. Preferred 5 per
cent. stock, non-cumulative, $40, 900, 600.
n vote of the majority of the pre-
ferred stock is requisite to authorize
any additional mortgage on property
covered by the first mortgage. The
common capital stock is SllO, 900,
making total capitalization of $3.50, OOO,-
600. This total capitalization is to
cover securities of the Terminal Com
panY' Richmond and Danville and East
tennessee i'll the hands of the public
and owned and controlled by the com
panies, amounting to 1904 500, lOl, exclu-
sive of car trusts.
The plan provides for the retirement
OF the existing car trusts. amounting to
S2,36o, 564. and floating debts amounting
to SG,3l0,00o. The present fixed charges,
including car trusts, amount to S0,474,-
S37, against net earnings Of $S,744,736.
The fixed charges, under the proposed
plan when clrried out, will amount to
So, 400, 900, to which sh luld be added the
rentals of tho Cincinnati Southern.
LOCO, 600, and the North Carolina rail
road, S.60,00O, making the total fixed
charges S7,G6C 900.
This leaves apparently $l,iOO, 600 in
sight for dividends on tho new per
cent preferred stock. Tho committee
calls attention to the fact that in view
OF pending litigation, affecting the Cen
trail Railroad and Banking Company. of
Georgia, and of questions which are be-
lore the courts and unde termined re-
speeding the existing lease, and con-
sldering the legal difficulties attending
the consolidation of that company, IL
has found it advisable to make no pro.
vision, Tor the present, for taking up
the outstanding stocks and seen It'll IS of
the stock of the Central Railroad and
Banking Company, Of Georgia, but the
Richmond Terminal Company, in these
stocks and securities, will vest in the
new corporations and form part of the
security for the now first mortgage
bonds.
It's contemplated by the plan that
Inc rights and interests Of the East
Tennessee, Virginia and Georgia Rail-
road Company, in the securities Of the
Alabama Great Southern Railroad Com
panY, limited. Alabama Great Southern
railroad and Cincinnati, New Orleans and
Texas Pacific railroad shall be subjected
to lien OF the new first mortgage that
satisfaction and discharge of Richmond
terminal collateral trust 6 per cent.
mortgage will DO deferred until the col
lateral deposited to secure the bonds
issued hereunder, may in the Judgment
OF the committee, be directly subjected
to lien Of the new first mortgage.
In the opinion of the committee the
concentration of the numerous corpora.
tionS under ono management will result
In largo reduction in tho expenses
and corresponding increase in the net
earnings.
The plan makes due allowance for
the requisite Improvement and better
ments during the next two years. The
committee il to name the first board O;
directors OF the new corporation, which
will be called The Southern Railway
Company.
In determining the basis of the old
securities for the new, the, com 10 ttee has
endeavored to exercise absolut, Impair.
TALLY, and has reached this conclusion
after careful study OF the merits OF each
security The terms upon which the |
present securities ara 10 be exchanged |
for those of the new company cannot |
be set forth in the limits uf this sum. |
mary, as they occupy nearly a score OF |
pages in the pamphlet copy OF the plan. |
An important feature OF the plan is |
the rights which are given to tho hold
ers OF Terminal common and preferred |
stocks and collateral trust per cent. |
bonds to subscribe to the securities of |
the new company. Each holder of 100 |
shares OF these stocks and of 81 900 bond |
is entitled to subscribe 81, 600 to the !
cash fund OF S14,5Ss, $40, which Is neces.
sary 10 meet the cash requirements of
the plan.
For such subscription of $1,000 they