The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-05-24

GEN. THOMAS SUBMITS 1T TO THE
STOCKHOLDERS.

An Assessment of 10 Per Cent. One of
Its Features-The Georgia Central
Stock to be Disposed OF By Issuing
Certificates for Fractional Parts to
the Terminal Stockholders.
New YORK, May. 23.-The meeting of
Richmond Terminal stockholders held this
afternoon at the office of Work, Strong &
Co. was well attended aud remained in ses-
sion fully two hours. w. E. Strong pres
sided. Gen. Sam Thomas and w. P. Clyde
did the talking.
Gen. Thomas opened the ball by saying
that his committee had been
in operation only three working days and
therefore had by no means accomplished
everything pertaining to the matter with
which they were charged. He said that
they had received several communications
making elaborate suggestions with refer
ence to their task, and that all such had
been duly considered. He furthermore
stated that several plans had been outlined
one Of which commended itself especially
to his judgment, and he was prepared to
submit it.
THE SCHEME.
The following is a summary:
Let IS, ,OOO,0 900 be offered in the nature OF
2-year loan, bearing 6 per cent. interest,
for the immediate relief of the Terminal
and Danville companies He recommended
that this loan be offered at 9215 cents on
the dollar, and that the proceeds be used
to buy up the present floating
debts of the Danville and Termi-
nal companies, which were now
being carried by various banks and trust
companies. The security for this loan
would be all of the securities now hypothe-
Gated with the banks and trust companies,
and, in addition thereto, all the unpledged
securities now in the treasury Of the
Terminal company. He urged that
every sense ample to make the
be more collateral than the banks and trust
companies now have to secure the same in
debtedness.
BONUS.
He proposed further to give to the sub
scribers of this loan as a bonus 10000, 900
of common stock in a new, company to be
organized in lieu of the present Terminal
company. This loan is to be offered prima-
rily to the present common Terminal stock
holders. If they do not teke it all
what they leave is to be offered to the Ter
minal preferred stockholders and the per
cent. bondholders. IL there is still balance
unsubscribed for 1t is to be offered to the
Terminal 6 per cent. bondholders If the
aggregate subscription Of all these Terminal
security holders does not amount to the
total loan the residue will be offered to the
public.
NEW PREFERRED STOCK.
If this lean is fosted the new company is
to issue $43,OOO,OOO of preferred stock,
which shall be offered at GO cents on the
dollar in exchange for the present Terminal
n M do nd in 70
the present per cent. Terminal bonds and
preferred stock, and to pay off the SS,000.
900 loan on the same terms that
are given to the Terminal 6
per cent. bondholders. 1t Is further
provided that this preferred stock shall have
the right to elect two-thirds of the directors
of the new company. 1t is further provided
that this new preferred stock shall be Sc
cured by all the collaterals now behind the
Terminal per cent. and 5 per cent. bonds,
the preferred stock and the present floating
debt Of the Danville aud Terminal CONS
panies.
Gen. Thomas argued eloquently in favor
of this plan, explaining that 1t would do
away with all bonds and thereby make the
new company an organization without any
fixed charges. the preferred stock being
only cumulative 6 per cent. obligation, =,
aud yet as strongly protected as the present
collateral trust and 6 per cent. bonds.
EovAL PRIVILEGE.
The preferred stock scrip of
the new company is to have engraved in
the face all the securities that are deposited
in trust for its protection, and any indi-
vidual holder of it shall have the right at
any time to demand of the trust company
holding the collaterals pledged for
its benefit his propOrtlonate
share of such collaterals and withdraw them
and make whatevsr use of them he pleases, it
only being required of him that at the same
time he shall have stamped on the back of
his scrip that he has taken out of the trust
the pro rata share Of collaterals belonging
to that scrip.
After Gen. Thomas finished talking, Mr..
Clyde addressed the meeting at considerable
length, strongly advocating the merits of
the plan. 1t was then moved that
the chairman appoint COM
mittee Of fifteen TO confer
and cooperate with Messrs. Strong, Thorn.
as and Clyde in the further prosecution Of
their work. The meeting then adjourned
80 bjoct to the call Of the chairman. This
is by no means the end of the matter, but
only an initiatory step. No doubt various
other plans will be formulated and proposed
before anything is positively adopted.
Ii. J. v.
WHAT is TO BE DONE WITH CENTRAL.
By the associated Press.
New York, May ga meeting of
Richmond Terminal security holders was
held to-day to receive the report Of the
committee appointed last week. Gen.