The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-06-02
TURNING IN THE BONDS.
TIE MARIETTA AND NORTH GEOR-
GIA REORGANIz ALTON SCHEME.

-
About 100000 Deposited So Far
With the Atlantic Trust Company
Under the Agreement - Savannah
Bondholders Think the Plan the Best
Thing That Can Be Done.
The reorganization scheme OF the Mari
eta and North Georgia railway, undertaken
by the Atlantic Trust Company
of New York, alluded to in yesterdays
MORNING NEWS, appears to be progressing
favorably. Over 100000 OF the con-
solidated mortgage bonds Of the road are
held in Savannah. The remainder are
chiefly held in London, Boston, Philadel
phia and New York, the largest block being
held by Hambro & Son of London. Most
Of the Savannah holders have already de-
posted their bonds with the trust company.
About 81 900 900 of bonds in all, have been
deposited up to date, it is understood.
Representatives of the Savannah bond
holders who were seen yesterday said they
had decided to enter into the plan Of reor-
ganization as the most available one under
the circumstances, though Ia some particu-
lars it Is not entirely satisfactory. AS half
a loaf is better than no bread" they are
willing to enter into the plan in the hopes
of improving their position.
THE COMPANY BACK OF IT.
The Atlantic Trust Company of New
York, which undertakes the reorganization.
is an established company Of large capital
and fully able to carry out what 1t under
takes.
The plan of reorganization is based upon
an issue Of $3.500,000 Of first mortgage
bonds, S4,000,000 of general mortgage
bonds, S3,500.0O0 Of preferred stock, aud
common stock not to exceed SS,000000,
making a total possible issue of 81, 500 900 of
bonds and 81 500 900 of stock. The issue
may be much less than this amount, how
ever.
The new issue of stocks and bonds is to
be used to pay off the indeb tedness of the
company and to exchange for the present
stocks and bonds outstanding. The reorgan-
izers of the company are the holders OF
the present consolidated mortgage bonds
amounting to SO ,821 900, and are the real
owners Of the railroad subject to liabilities
amounting to 81, 3S9, $50. There IS an issue
of capital stock of about s., $50. 600 which is
not worth anything. This will be exchanged
for the common stock of the new COM
pany, which will be of about the same
value.
THE MARIETTA COMPANY.
The new company will be known as the
Marietta company. 1t will issue So, 500 900
VI ulSI lOIbbdBS DOnub, u WAlCD GDOO tOOO
will be reserved for the contemplated
extension to Atlanta and tor
minals, and 100000 for the
settlement of contractors liens If estab-
lished, leaving s., 600, 900 OF bonds to be
placed upon the market. The proceeds de-
rived from the sale of these bonds Will be
used for the following purposes: To take
I'D the 1888. 900 of bonds OF the old Marietta
and North Georgia railroad now outstand-
ing and to pay the $4,000 of matured
coupons on the same IN July |, 1892; to
settle Indebtedness Of receiver for rolling
stock of S246, 900, and 1850, 900 to 60 to the
improvements and betterments Of the road,
including the building of the Knoxville
bridge
The minimum price fixed for the disposal
of the new first mortgage bonds is Is per
cent. OF their face value. At this price the
81 600, 900 of bonds to be disposed of would
bring 81, 800 ,000. This would be sufficient
to defray the expenses named and leave
$4,000 for expenses in the hands of the
committee.
THE GENERAL MORTGAGE BONDS.
Next comes the issue of the new general
mortgage bonds, amounting to S4,000,000.
These will be exchanged for the
present consolidated mortgage bonds
of the class held in Savannah
! and elsewhere, amounting to 1891 900,
exchange being made bond for bond. This
will leave $179 900 of these bonds for fur
Their uses of the committee
Next will be the issue of 81, 500 900 OF nom
| accumulative income bonds, to be used in
| Payment of the overdue coupons of the
present consolidated mortgage bonds to
July l, 1892, amounting TO about $3.50, 0O0
and also to pay interest on the general
| mortgage bonds to Jan. l, 1897, amounting
! to S90O, 600 This will leave $50, 600 of these
bonds in the hands Of the committee.
1t will be seen that the holders of the
Savannah bonds will receive dollar for dol
lar of the general or second mortgage bonds
aud payment of their unpaid coupons to July
/ 1892, in non-accumu alive income bonds
which are to be paid as soon as the earnings
of the company exceed its otherwise fixed
charges. II the company does not earn the
dividends upon these second mortgage
bonds the interest may also be paid In the
non-accumulatlve income bonds up to Jan.
/, 1897.
They simply have show of getting some
thing for their money, but by no means a
guarantee.
THE FIRST MORTGAGE BONDHoLDERs TO
CONTROL.
The first mortgage bondholders will have
complete control OF the road and its earn
ings up TO a certain degree. They are guar
anteed 50-year gold bonds at 5 per cent,
giving them the first lien.
be deposited with the trust company to be
voted by the committee in charge, until
the railroad company has paid one years
interest on its first mortgage bonds, but not
in any event to exceed five years. AS the
total interest bearing bonds of the COM
pany under the reorganization will be
OILY $7,500.000, which, at per
cent. annually, would require only 1915, 900,
the prospect for the re-establishment of the
value Of the second mortgage bonds, after
the discharge Of the liabilities and the i'm
provement of the road contemplated, is
very good.
The consolidated mortgage bonds cost the
Savannah holders about 90 cents on the dol
lar. IL is estimated that the new general
mortgage bonds which will be received in
exchange will be worth about 80 cents on
the dollar inside of one year after the re-
organization is perfected.
Friday VIII Be Great Day
For you. If you come to the special rem.
colo r,ftb A