The times. [volume] (Richmond, Va.) 1890-1903, 1892-01-13
REORGANIZATION PLAN.
WORK or the oLcoTr COMMITTEE.
forecast OF the Much Talked OF Change in
tho Richmond Terminal Affairs.
metropolitan Matters.
NEW YonK BUREAU, RICHMOND TIMES,

NEW YonK BUREAU, RICHMOND TINES.
Jan. ~. 1872.
tits officially stated that the Olcott COM
mittee now hold proxies representing much
moro than control OF the Richmond Terminal
preferred and common stocks No date fol
. meeting of the security holders has yet
been fixed. but that will be the next step IN
the programme.
What ~ said 10 be forecast of the plan OF
tho Olcott reorganization scheme was made
public tonight. az follows: A new company
will 10 formed with charter empowering II
TO act "a a general proprietary company but
also with power 10 operate and man
ace It's owned lines. For this purpose the
charter Of the Rchm nd. DanVlae
and Southwestern Railroad Company VIII
probably be used This charter was granted
by the State OF Virginia about four years ago.
ANEW COMPANY.
II this charter il unavailing a new one will
be obtained The new company Will then
issue It's securities in exchange tor those OF
the present companies composing the lerihi-
nal system. The Terminal securities, as
represeutng the control Of the subordinate
roads will also DO exchanged. The Original
stocks and bonds will then 60 into the treasu-
~ Of the new company. IL Is estmaten that
complete exchange can be ehected
by the suance by the new company ~
elS9.OO0. 900 of its bonds and Sla6,O1lOlJ
Of its stock. This capitalization adjusted 20
the mileage Is ~ the rate OF less that eiD,OJO
a mile The exchanges Of the various secur-
ties of the component roads for those OF the
new company viii 10 large part have 70 10
determined by the equities OF the cases apart
10 some extent from the market prices. This
will also be ia the hands OF the Olcott COM
mittee.
Az O1Y s. ADVANTAGE.
But there Will be an obvious advantage to
the holder Of any Columbia and GTeenWlle Sc
curities to exchange them for the seuritles OF
the new company. which will be listed upon
the European bOurses and have the advantage
OF an international market The process OF
exchanging the securities will be also much
simplihed by the fact that the Terminal com
pany already owns all Of the Danyille stock,
n majority of the Central of Georgia and
large portion of the East Tennessee com
pany. The mi rity stockholders can
come In or not as they see III
The corporate existence OF the rOads Will DO
maintained az long rs there are any uncohc
verted securities outstanding. Just as that OF
the Richmond and Danfllle now IS, aithOueh
the Terminal Company owns all OF the stock
except some 12O shares, the owners OF whicn
are lost and the stock with them.
ADVANTAGE or TIE PLAN.
But the great advantage Of the plan lies in
the fact that instead OF three companies
there will be one consolidated company with
one management to operate the whole sys-
tenn. The saving of expense will be enOr-
NOUS The cashing of separate manage
ments will be done away with and the man
ayers Of the road can tell without trouble Iust
what their income Is and where 1t Is 70 be
applied. The interest on the new bonds Will
probably be 4 or per cent. 10 is under
stood that a powerful banker syndicate has
consented to underwrite the new securities
when issued. and II is thought that the whole
scheme will 90 through with a. little friction
as can DO expected Of q plan Of such magnl-
tude.
HISTORY on THE WORK.
This railway scheme. which is Of unprece-
dented magnitude. Is IN progress OF periec-
ton. the full details of which will be made
public IN "a few weeks The scheme, If sue
cessful Will be the financial and physical re-
organization of the Richmond and West
Point Terminal Railway and Warehouse Com
pany. This company controls and operates
other railroad companies, with total
mileage of 5000 and with lines extend
ing from the Potomac aud Ohio rivers TO the
Gulf of Mexico and from the Atlantic ocean
to the Mississippi river. At present the Ter
minal company Is divided into three great
divisions. The Richmond and DanyAi.e the
Central of Georgia. and the East Lennessee
Virginia and Georgia. These r0ads are Ope-
rated separately. and each h8sIts own presl-
dent and separate management. 10 has been
felt for long time think the Terminal system
as now operated has become unwedy.
While the various constituent roads,
Rll owned wholly or in part by the Ter
miDai Company. had their separate manage
ments 1t gave rise 70 clashes, ana. as IN many
gases, they run through the same territory,
the singular spectacle was presented of two
roads owned by the same controlling COM
pany engaged IN a vigorous rate war. The
financial troubles of the Terminal Company
have been pretty thoroughly ventilated in
the newspapers for months. Those persons
interested IN the welfare Of the great system
felt that II was time something should he
done TO Introduce order and method IN
the companys affairs and looked about
for some one able TO help them. Mr. +. p.
Olcott president of the Central Trust Com
pany and author of great number of sue
cessful railway congratulations, was called
on and asked to undertake the herculean task.
lie consented, aud with four other gentle
-Messrs O.. II. Payne, L. ID. Tappin. W.
III. Perkins and Henry bodge-formed a COM
mittee which has full power 10 draw up
plan of Reorganization which when finished
will be voted upon 10y the stockholders
The earnings of the Norfolk and Western
for the first week IN January show 1928