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 the r. & D., e. T., v.
q g., and Central of Georgia
"Details of the organi-
zatiOn.

New YORK, Especial. The Rich.
mond Terminal Company's stockhoiders'
committee arc about ready to submit their
plan for the financial reorganization of
that company and the roads controlled
ffrit--v4S q 068sotrfurrvu-tr ArIIAar y ti,ru,,a,,
and all the companies included i'm the
Richmond and Danvillc, East Tcnnt
Nirginis and Georgia and Central Nal,-
road of Georgia systems, ap"rcpatipg
$500 miles, into one corporation and one
management
The new company will be called the
Southern Railway Company" The
committee propose the issue of $500, OOO,-
eco OF new securities. These new sccuri-
ties arc to take up and retire all of the
securities issued and outstanding on the
properties as at present organized. and
provide for all the floating debts, car
trusts and other unfundcd obligations
OF the several companies.
CAPITALIZATION, DEBTs, ETC.
The present amount of capitalization
and unlundcd debts of the various COM
panics is over $4S0,00O,O 900, instead of
S2l2,5O0,OO first mortgage Is, $G2, $780,
c0n incomes, $75, 600, 600 preferred stock,
and 500, ,G00,G0 common stock as mt
first proposed. The new securities will
consist of 1920, 600, 600 first mortgage 4
per cent. bonds, SOS, ,OOO, 900 second
mortgage per cent. income bonds, $75,-
100000 per cent. preferred stock and
SllO,O0O, 900 common stock. OF the
first mortgage bonds it is proposed to is
sue So Is, 900, 900 immediately for the re-
tlrcmcnt of tn: present bonded debts and
for tho paving Of floating debt, car trusts,
etc $1,000 900 are reserved for i'm
piovcmcnts to the properties.
OUTLOOK FOR TIE NEW COMPANY.
The new company will thus start with
interest charges of $4,000, 900. to which
will be addict existing rentals of 81. 500
0jO, making altogether 40. 100. 900.
This is over So. 900, 900 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
srcurcone management for the whole sys-
tenn. BY the latter competent experts
believe. that from sc, 200, 600 to So, 600. =
goo Can DC added to the net earnings
during the next y3ar. The gross earn
lnSs OF the system are now $40, 900, 900
per annum, with cotton and ali the in
~a9stries in the South ip the most depress.
cd condition that has existed for wears
AS this vast system of railroads reaches
all parts of the South, any favorable
chanSc IN the conditions there will i'm
mcd'ately improve its earnings, hence it
Is reasonable to expect that the gross
earnings will reach $42, 600, 900 next
year. Inc ratio of expenses to earnings
heretofore has bern about 20 per cent.
1 IS pta1 xl
which will be promoted by this consoli-
dation Will reduce this to GGs per cent
From this 1t may be seen that 81, ,0OO,-
OoO may be reasonably expected. Such
result, which isalmOSt certain, will paw
the interest on the first mortgage bonds
and the incomes, and show Immediately
nearly 2 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
tlct is most equitable, each of the old
ones being considered in all its bearings
and treated strictly on its merits with
out prejudice or partiality. The COM
mlttee propose to raise about $34, ,00O, 900
OF cash by the sale of portion Of the new
securities. The Richmond Terminal stock.
holders will be offered the privilege of
taking the securities at prices which will
promise them profit of at least per
cent. This subscription will be under
written by q bankers syndicate, in order
to assure the success of the rcorganiza-
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 n sound and stable financial
basis cannot fail to bc of immense com.
mercial value to the South.
For the 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 ready market and forthcom
ing value in the greatest money centres
in our country. This of itsc'f will add
greatly TO the available capital of the
South
Legends OF the MaOries.