The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-03-03
CENTRAL DIRECTORS MEET.
Only Routine Business Said to Hav
Been Transaceed


Been Transacted.
The March meeting Of the Central rail-
ROAD directors was held yesterday The
only out of town director present was Col.
=. ID. PhiniZy Of Augusta. The meeting
was very shortone. Gen. Alexander said
last nightthat nothing of general interest
was done.
The plans Of the Olcott committee nor
anything OF this cha acter came before the
meeting. Gen. Alexander said.
story from New York is to the effect
that the details of the committees plan OF
reorganization have about been completed.
me only details remaining to be arranged
are those with regard TO the syndicatss that
are TO raise the S35 ,0OO, 900 in cash needed to
retire the floating debt and bring about the
transfer of securities for the proposed new
company. One syndicate, it is said. will
ne headed by HaIgar;en IL Co. and Won
norman q Co., the other by J. K. Davis,
the Central Trust Company and their asso-
ciates. Until these details are arranged the
pan OF reorganization cannot be published,
One of the chiefly interested parties says
tnat the substantial feature will be that
every railroad in the whole system will be
consolidated into one grand company, oper-
atlng nearly 5000 miles of railroad under
one management. This reorganization will
involve the output OF 2.500, 900 of per
cent. first mortgage gold bonds, 500
5OO,OOO OF 4 per cent income gold
ponds, S75.OO0,O00 Of 5 per cent. preferred
stock and $l50,0O0 900 of common stock.
Tbe plan OF the underwriting syndicate
of S34, 100000 IN the Richmond Terminal
reorganization is that for each $4,000 in
cash they Will receive as 000 in first mort
cages per cent. bonds, $3.50 in income
bonds and $3.50 in common stock. The
gross earnings OF the system computed on
the basis OF the close of the fis-
cal year Of 1890 and 1891 is put
at $4l,000,000, and it is estimated
that the system could be worked at a cost
not exceeding 60 per cent, leaving over
Sl3,5OO, 600 net to pay fixed charges and
dividends. The total issue Of first mortgage
and income bonds will be little under
$4,000. 900.
The syndicates will take the securities on
the same basis, with the exception that they
VIII receive 2 per cent. cash commission
Tor their services in underwriting the new
securities.
1t Is expected, according to report, that
the great reductions resulting from the new
organization will largely increase the net
results. 1t is not expected that the under
writers OF the 1874, 000, 900 will Ue able to get
more than 80 per cent. of their subscriptions,
and probably not that much, AS the re-
orRa Ilzation plan seems 20 meet with such
general approval. The new securities being
issued on low basis and an immediate
prospect of advance. the holders of the
Richmond Terminal preferred and common
stock will lie given ito right to subscribe
before the underwriting syndicate.
Inere Is great deal OF discussion In Sa-
Vannah as to the manner in which the
Olcott commuters plan will be received by
the holders of Central. Southwestern and
other stocks of the old Central system in
IL.
there Is some stronger assurance than it
appears from the reports already given out
Will be given, that the Georgia stockholders
VIII decline to give up their stock in ex-
change for the consolidated stock. The
stockholders are very doubtful of
anything bearing the impress of the
Richmond Terminal, and will want some
strong assurance that the dividends upon
the new stock will be paid before exchang
ing their old stocks.
There is considerable difference of opinion
as TO the wisdom of this course. Those adj
vocating it say that the Central railroad
and Rlchmoud and Danville are bound for
the dividends upon the stocks, and no
changes that may be made in the present
position of the roads in the system will re-
lease them from this obligation. The
South western stockholders claim that they
have lien upon the Central railroad, which
can be enforced in case of any default
On the other hand, it is said that if this
nlan were adopted by the minority stock
holders that steps would be taken by the
holders Of the new stock to freeze them out
and place them in a position where they
would be glad to sell at reduced price, If
the lessees were not SO strongly bound in all
the various leases of the compile ated system
of railroads composing the Richmond Ter
minal Company, it would be very easy to do
this by passing dividend, but with legis,
latures and juries so unfavorably disposed
toward the railroad corporations and COM
bines there would be great danger to the
Terminal company or its successor in taking
such STEP
The stockholders are not inclined to give
up sure thing unles they have big induce
mentS.