The times. [volume] (Richmond, Va.) 1890-1903, 1892-03-03
SOUTHERN RAILWAY CO.
TERMINAL SYSTEM REoRGAyIzED.
Consolidation OF Richmond Terminal with
the Il. a ID. D.. T., v. q c.. and Central Of
Georgia-Detalls OF tho Organization.

NEw YORK. March 9.-lspeca. Tho
Richmond Terminal Company's stockholders
committee are about ready 10 submit their
plan for the financial reorganization Of that
company and the roads controlled by it, as
heretofore stated in ThE TINES tho plan pro-
poses a consolidation Of that company and
al tho companies included in the Richmond
and Danvils. East Tennessee, Virginia and
Georgia and Central Railroad Of Georgia S.
TENS. aggregating $500 miles. into one cor-
poration and one management.
The new company will be called the South
ern Rsilway Company" The committee pro-
pose the issue OF $500 O00 000 OF new secur-
ties. These new securities are 90 take up and
retire all OF the securities issued and out
standing on the properties as at present OF
ganized. and provide for all the floating debts.
car trusts and other unfunded obligations OF
the several companies.
cAPITALIzATIoy. DEBTS. &C.
The present amount of capitalization aud
un:unded debts OF the various companies :
over S4s0.00O. 900. instead of S2l2 800 900
first mortgage is. sG2J0o,000 incomes.
$4,000, 900 preferred stock and Sl50 900, 600
common stock as at first proposed. The new
securities Will consist of SG0,OO0,OO tir't
mortgage I per cent. bonds, Si5,OOO 900
second mortgage I per cent. income bonds,
S75. 1000 900 per cent. preferred stock, and
&14O.0l000O common stock. OF the first
mortgage bonds 1t is proposed 10 issue -2l5.-
600 0JO immediately for the retirement of the
present bonded debts and for the payment or
floating debt. car trusts. etc; S5,OOj,OOO are
reserved for improvements TO the properties.
OUTLOOK Foa THE NEw COMPANY.
The new company will th1s start with in
terest charges of 81. 900. TO which VIII be
added existing rentals of Sl,56D, 600, making
altogether so lG0 0OO This Is over 13OOO.OOD
less than the present fixed charges and annual
car trust payments The new plan while
saving S3OOJ 900 of fixed charges. will re-
lieve the companies Of floating debt and Sc
cure one management for the whole system.
BY the latter competent experts believe that
from q 600 900 TO ~. 900 O00 can be added TO
the net earnings during the next year. The
gross earnings Of the system are now 10000
900 per annum. with cotton and all the indus
tries in the South IN the most depressed
condition that has existed for years. AS
this vast system of railroads reaches all
parts of the South. any favorable change IN
the conditions there will immediately i'm
prove its earnings. hence 1t Is reasonable to
expect that the gross earnings Will reach S42-
600 600 next wear. The ratio OF expenses TO
earnings heretofore has been about 10 per
cent, but 1t Is expected that the economies
which will be promoted by this consolidation
will reduce this TO &C. per cent From this
il will be seen that 100000 net 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.
Al EQUITABLE PLAN.
IL ia said that the plan OF distribution OF
new securities 10 retire the old securities Is
most equitable, each of the old ones being
considered IN all its bearings and treated
strictly on It's merits without prejudice or
partiallty. The committee propose 10 raise
about s34 600 600 of cash by the sale Of por-
ton of the new securiiies Tie Richmond
Terminal stockholders Will be offered the
privilege of taking the securities at prices
which will promise them profit of az least
3 per cent. This subscription will be undes-
written by a bankers syndicate. in order 10
assure the success of the reorganization. 10
the security holders the plan affords relief
from the uncertainty of their security and
prospective losses which have stared them N
the face for several years.
IMMENSE COMMERCIAL VALUE.
The consolidation Of this great system
under one management. and its incorporation
upon a sound and stable financial basis can
not fail to be of immense commercial value 10
the South.
For the almost unknown stock and bonds
issued upon local roads throughout the South
there will be given an equivalent amount Of
securities which will have "a ready marketand
forthcoming value in the greatest money
centres in our country. This OF Itself viii
add greatly 10 the available capital OF the
South.