The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-01-13
OICOTT'S SPLAN OUTLINED
,oNso1IDATIoN OF COMPANIES
AND COLLATERALs.

A Complete Exchange on the Basis OF
100 100000 IN Bonds and $780,
zoo oOOin Stock-The Capitalization
.ra Basis of $4,000 Per Mile.
Tne securities to be Listed on All the
-,-o,,anUes of This Country, London
and Europe.
vvw YORK, Jan. IA railway scheme
-, nrnrecedented magnitude is in process of
..,.ctiou. the full details of which will be
- nublic in few weeks. An evening
N.nar 49,. claims TO give the main facts Of the
today In advance Of the report of the
-1D,r,i,tee on reorganization. THE great
..hor,e i, the financial and physical reor-
-a,,otion of the Richmond and West
point Terminal Railway and Warehouse
Company.
NEW PROPRIETARY COMPANY.
"Rrieav stated, the Olcott plan when
.-tootad will present these details: In the
F-.t nlace new company will be formed
-rtb a charter empowering it to act as a
careral proprietary company, like the
orssent Terminal company, but also
ritb power to operate and manage
&c own lines. For this purpose the
.b.rtar Of company called the Richmond,
nonville and Southwestern Railroad Com
ronv will probably be used. This charter
|. under examination by the company's
LAWYERS now. 1t was granted by the state
ofVirginia about four years ago. II this
charter is unavailable a new one will be
obtained.
AN EXCHANGE OF SECURITIES.
"Tbe new compVny will then issue its se-
cnrities in exchange for those of the present
companies composing the Terminal system.
The Terminal securities. as representing the
controlof subordinate roads will also be ex-
changed. The original stocks and bonds
will then 20 into the treasury Of the new
COMPANY. 1t is thought and estimated that
a comple to exchange can be effected by the
issuance by the new company Of
sl@OOO,00O of its bonds and Sl36 ,00),-
OOO Of its stock. These figures at
first seemed staggering, but when the cap
itazation is adjusted to the mileage it will
be seen that it is at the rate Of less than S
cooper mile No other section of the
country can show a similar proportion Of
capitalization to the mileage as this, the
figures varying from sl21,OOO per mile in
the middle states to e48, 900 per mile in the
northwestern states.
BASIS OF THE EXCHANGE.
"The exchange Of the various securities
of the component roads for those of the
new company win in large part, have to
be determined by the equities of the cases
apart. Ito some extent, from the market
prices. This will also be in the hands of the
Olcott committee. But there will be an OBJ
vlous advantage TO the holder of any Col
umbia and Greenville securities to exchange
them Tor securities of the new company,
which will be listed upon the European
bourses, and have the advantage of an in
ternatioaal market, The process of ex-
changing securities will be also much sim
pAfed by the fact that the Terminal COM
peDy already owns all of the Danville stock.
majority Of the Central of Georgia, and
sArge portion Of the East Tennessee com
pany
PRIVILEGE OF THE MINORITY.
The minority stockholders can come In
Or not, as they see fit. The corporate exist
ehce Of all the railroads will be main
@nea as long as there are any unconverted
securities outstanding, just as that of the
richmond and Danville now is, although
'le terminal company owns all of the
"ocE except some 120 shares, the owners
which are lost and the stock with them.
But the great advantage OF the plan lies
ID 'ae fact that instead of three companies
@eFe Will be one consolidated company. with
V1e management to operate the whole sys-
Tn 4he saving Of expense will be enor-
IOuS The clashing of separate manage
-'u'' Will be done away with and the man.
's''s OF the road can tell without trouble
!-'' "nat their income is and where it is to
happlied.
THE INTEREST RATE.
- 'course, such details as the interest on
~, ue" ponds are undetermined. The rate
' VA probably be Al or 3 per cent. 1t is
..4sEstood that powerful bankers syndi-
aa'' mas consented to underwrite the new
.4'l'e' when issued. aud it is thought
s.'' s.an 'le whole scheme will go through with
mug friction as can be expected of a
'1a OF such magnitude"
" was announced to-day that the Olcott
Saa1 Sr-Il''ee' In charge of the preparation of
NJ. y0n lor the reorganization of the Rich
n.i.. terminal finances, had seoure1 a
vbs ;yI"S OF proxies from the stockholders.
So0u S.1 uaa Deem asked for preparatory to
~7 submission Of their schen,a