The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-12-10
THE PLAN PREPARED.
CENTRAL'S COMMITTEE AGREE
ON a BASIS OF REoRGANIz ALTON.

Where They Have Been in Confer
ence with the Reorganization Com
mittee-The Committee Will Report
in Two Weeks - President Conner
Talks and Gives the General Outlines
OF the Plan.
President and Receiver II. II. Conner OF
the Central railroad, Directors George J.
Mills and U. B. Harold and Col. William
Gcrrard, associate counsel, arrived yesterday
morning from New York. Directors Mills
and Harold, ss will be remembered, were
appointed committee from the Cenlrsl's
board Of directors to confer with the COM
mittee on reorganization.
President Conner and Col. Garrard also re-
manned in New York with Directors Mills
and Harold 70 furnish such information and
make such suggestions with regard to the
plan of reorganization as might be useful to
the committee.
President Conner announced upon bis re-
turn yesterday morning that the general
outlines OF the plan OF reorganization have
been agree upon and IL only remains now to
work OUT the details, which work IL Ia ex-
pected will be completed In few days. 1t
10 expected that the whole plan will be an
bounced In q few weeks.
President Conner was seen at his office
yesterday by a MORNING NEWS reporter
and asked for information with regard to
the plan.
PRESIDENT CONFER DISCUSSES THE PLAN.
you can say" said Mr.. Conner, ''Ehat
basis OF reorganization has been agreed
upon The general plan of the reorgani-
xatton has been decided upon and 10 now
only remains TO work out the details, which
viii be done az fast as possible. The plan
or reorganization 10 safe, practicable and
Just to all parties interested and its inan-
clal success 10 assured.
This ts what have been striving for
since / became fully acquainted with the
condition OF the Central railroad and the
tmpossibiltty Of its carrying large float
ing debt-a plan that would be financially
sound and at the same time just to all inter
ests concerned. l think we have now at
tained this end. Ali classes of securities
OF the Central railroad are protected by this
plan, the junior securities being protected
as well an the senior or first mortgage securi-
ties. OF course there will be a general cut
ting down Of the fixed charges and a COM
bination, or tying together as 1t were, of the
different parts OF the system.
NO FIVE PER CENT. MORTGAGE BONDS.
"The report published this morning that
there would be general issue OF 5 per cent.
first mortgage bonds to retire the present
the present floating debt Is entirely un-
founded. The details OF the plan
are known only to the members Of
the committee on reorganization
and the directors OF the adj
visory committee and to counsel,
and none of them have divulged any of the
particulars concerning it. AL reports pre-
tending to give any outline Of the plan OF
Reorganization are unfounded and untrue.
BONDS AND STOCKS TO BE ISSUED.
''There will be issued general mortgage
bond at q low rate Of interest covering the
entire property and probably preferred and
common stocks which will be offered in fair
proportions in exchange for outstanding
obligations. The values of the new issues
viii be underwritten by q strong syndicate
who will pay cash and take all that are not
exchanged. This enables all the old secur-
ity holders to elect whether they, will
take the new issues or cash.
These bonds will be taken by large northern
investors who have large amounts which
they are willing to invest at q low rate of
interest In safe securities.
az think the plan will prove generally &C
ceptable TO ali the holders of Central secu-
rites. The reorganization will be backed
by an ample amount OF capibal-S10, 900, 600
70 SIS, GOO. 0o0-and there Is no doubt of its
success"
UNFRIENDLY LEGIsLATIoN FEARED.
'There Is only one thing now which can
Jeopardize the success of the plan" said
President Conner, land that is unfriendly
legislation. The various bills to reg ulate
the actions Of railroads now before the
legislature are viewed with great suspicion
by northern capitalists. This is the only
thing that can prevent the success of the
plan. 1t must be remembered that the peo-
pie who will suffer should this plan
60 reorganize the system fall are the holders
~ eho hnA vroN rksxne
bondholders can lose nothing. Ii Is the
stockholders and the holders of debentures
and similar securities who will lose their
money. These securities. to the amount of
millions Of dollars, are held in this state.
Should a foreclosure on the road become
necessary the loss to the people Of Georgia
will be fearful"
SECURITIES WILL ADVANCE.
Mr.. Conner strongly advises all holders Of
Central securities not to dispose of their
holdings, but to hold on TO them until the
plan OF reorganization is made public
They will be worth great
deal more on the market after the plan Is
made public than is offered for them now
All buying now, he says, must be for specu-
iation only. with all the chances In favor of
the specuiator.
The committee which prepared the plan
OF reorganization is as follows: II. B. Hol,
Inns. chairman; Emanuel Lehman. James
L. WOODWARD, james Stluman, =. ID.
Phinizy, E. Rollins Morse, Z. E. Denniston,
+. NJ. Colston, Lewis Fitzgerald and Jacob
Schiff.
Directors Mills and Harold acted as
an advisory committee in forming
the plan OF reorganization and Presi-
dent Conner and Col. Garrard =,
associate counsel, were present at the'delib-
eretions of the committee and assisted with
inform alton and suggestions
Mr.. Conner commended the committee
very highly for its efforts 20 do equal Justice
to all classes of the securities. The Junior
securities and the stocks were given partic-
ular consideration, he said.
Mr. CONFER PLEASED.
Mr.. Conner appears to be very much
pleased with the prospect, which is saying a
great deal From the beginning he has
viewed the situation with grave
apprehension and has scrutinized
all plans for the Central's financial
re-establishment very closely and
given his approval to none. While he did
not say so In SO many words yet 1t may be
taken for granted that the present Elan
meets with his approval. The fact In itself
viii be sufficient with great many who
have the highest reSDaot for Mr. EoUnaris