The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1892-03-11
SOUTHERN RAILWAY CO.
The Terminal System Completely
Reorganized.
Consolidation Of Richmond Terminal
With tho r. q p, u. T., v.
q G., and Central Of Georgia
"Details Of the organi-
zotiUn.

New YoRK, Especial. Tho Rich,
mond Terminal Company's stockhotdeiA'l
committee arc about ready to submit their
plan for the financial reorganization az
that company and tho roads controlled !
A-vAssutrfuvr vsasvAtuu -
and all the companies included In thei
Richmond aud Danvillc, East Tcnnt
Virginia and Georgia and Central i.al,-
road OF Georgia systems, aggrcgatiug
$500 miles, Into one corporation and one
management.
The new company will DO called tho
"Southcn Railway Company" The
committee propose the issue Of $500, ,000,-
GOO of new securities. These new secufi-
ties arc to take up and rctirc all of tho
securities issued and outstanding ON tho
properties rs at present organized, and
provide for all tho floating debts, car
trusts and other unfundcd obligations
Of the several companies.
CAPITALIZATION, DEBTS, ETC. =
The present amount OF capitalization
and unfundcd debts Of tho various COM
panics is over $3.50, ,00O, 900, instead of
&l2, 500, 900 first mortgage As, $02, 50O,-
600 incomes, $75, 600, 900 preferred stock,
and $3.50, 600, 900 common stock as at
first proposed. The new securities will
consist of $22O, 600, 900 first mortgage 4
per cent. bonds, e8S, ,O00, 900 sscond.
mortgage 4 per cont. income bonds, ]76,-
Oo0, 900 per cent. preferred stock, aud
$40, OOO, 900 common stock. OF tho
first mortgage bonds IL is proposed to is-
sue 1918, 600, 900 Immediately for the re-
t'rcmcnt Of tn, present bonded debts and
for tho paying of floating debt, car trusts,
etc 100000 arc reserved for i'm
provcmcnts to the properties.
OUTLOOK FOR THE NEW COMPANY.
The new company will thus start with
interest charges of $4,000, 900, to which
will be added existing rentals of 81 $780,
OlO, making altogether $40, 100, 600.
This is over $3,0O0,OOO less than the
present fixed charges aud annual car
trust payments. The new plan while
saving $4,000, 600 of fixed charges, will
relieve the companies of floating debt and
sccurcone management for the whole sys-
tenn. BY tho latter competent experts
bclicvc.that from $4,000, 900 to $1,000
600 can be added to the net earnings
during tho next year. The gross earn.
inSs OF the System are now 90, 600, 900,
per aunum, with cotton and all The in
-elgs'rics in the soath ~ the most depress.
w tudJ. oxxBL0ul i0r wears.
AS this vast system OF railroads reaches
all parts of the South, any favorable
change in the conditions there will i'm
mcdiately improve its earnings, hence it
ls reasonable to expect that the gross
earnings will reach $42, 600, 900 next
year. The ratio of expenses to earnings
heretofore has bcen about 70 per cent,
but it is expected that the economies
which will be promoted by this consoli.
dation viii reduce this to 06a per cent.
From this it may be seen that $14 ,OOO,.
600 may be reasonably expected. such
result, which is almost certain, will pay
the interest on the first mortgage bonds
and the incomes, and show Immediately
nearly per cent on the preferred stock.
AN EQUITABLE PLAN.
1t is said that the plan of distribution
of new securities to retire the old securi-
tict is most equitable, each of the old
ones being considered in all its bearings
and treated strictly on it's merits with.
out prejudice or partiality. The COM
mittee propose 10 raise about $34, ,000, 900
OF cash by the sale Of a portion uf - :. acSw=
securities. The Richmond Terminal stock.
holders will be offered the privilege of
taking the securities at prices which will
promise them pro1t oil ut least b per
cent. This subscription will be under
written by bankers syndicate, in order
to assure the success Of the reorganiza-
tion. TO the security holders the plan
affords relief from the uncertainty of their
security and prospective losses which
have stared them in the face for several
years.
IMMENSE COMMERCIAL VALUE.
The consolidation Of this great system
under one management, and its iucorpoo
ration upon sound and stable financial
basis cannot fail to be of immense com.
mercial value to the South.
For tho almost unknown stock and
bonds issued upon local roads through
out the South there will be given an
equivalent amount Of securities which
will have a ready market and forthcom.
ing value in the greatest money centres
IN our country. This Of itself will add
greatly to the available capital OF the
South.
Legends OF the MaOries.
The Maor;os arc somotimes pnneraIly