The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1893-05-30
HERE IS THE PLAN.
Details of the Proposition of Drexel, Morgan
q Co. for lkeurgMnizmx the Terminal.

New York, May 23.-(Special.) -Drexel,
Morgan Il Co. today handed down the pre-
scriptiCn which they have drawn up as the
proper dose to be administered to bring the
Richmond Terminal invalid around again
into a healthy condition.
Their plan differs from the O!COtt plan III
that the junior securities, or the later BOND
issue and the security stock Issue, stand
the Drunt of the pruning, and the underlying
securities are in many cases unrellaDle anu
allowed to run to maturity.
DreXel Morgan u Go. announce that they
have formed Il syndicate to undcrWrlte The
plan. If the security holders VINO nave de-
posted their holdings Internationally de
sire to withdraw they can do so on or be-
fore MAY :;lst but all securities withdrawn
will not participate in the reorganization.
The circular states that the tlchnond
and Danyilc and East Tennessee systems
have large intrinsic values but must be
reorganized at once if disintegr ,tlon Is to be
avoided. The absolute fixed charges OF the
Terminal company amount annually TO
S9.OUOOOO. while the entire net earnings
for the fiscal year ending June 80, lS',',
are estimated at $7,0OO.OOO. AS to the
common stock of the Terminal company
and the several classes OF stock OF tie r-ast
Tennessee company deposited "2'n ,ne
committee, participation Is farther depend
emf on the PAYMENT of assessments IN tour
equal installments when called FallMre
to pav forfeits the right to partlclpate' Inc
committee reserves the privilege TO terini-
nate at any time the right to deposit Sc
curities under the plan.
l,eraIis Of the scheme
The Richmond Terminal company. Rlch-
mond and Danvile system and East IenheS-
see system are TO be reorSanlZed ABOUT SIN
thousand miles of railway i'll all. Inc 'rcof-
cio Central is not included, although the
interest in that system must be protcci1u'
Tho denomination proposes to bring II"
OWN ,,,ilo
company preserving, however. local 1nde-
pcndence in all matters relating 10 opef't-
ing and traffic and to reduce charges 10
ST. 7S9, 900 The capital OF the new compa-
nv outstanding on the completion "l tne
denomination is expected to be ABOUT ~
600 bonds per mile of railroad owned or
controlled: $4,000, preferred stock; end
$4,000, common stock.
The Hasis of Adjustment.
The following is the basis OF adjustment
with the Richmond ard West Point Terminal
security holders in securities OF the new
company: -
per cent in new : per cent bonds bearing III
terest from July 1, 1893; 60 per cent IN new
preferred stock.
Five per cent Terminal bonds TO receive
20 per cent new preferred stock: 81 per
cent new common stock.
Terminal preferred stock. 90 per cent ne"
preferred stock; Go per cent new common
stock. .
Terminal common stock, on payment Of
an assessment of $3.50 per share. to re-
ccive II II per cent new preferred stock;
100 per cent new common stock.
The plan provides cash from assessments
the Terminal stock covering that company
holdings of Richmond and Danville and
East Tennessee stock. %S.Io0OOo; assess
montS on East Tennessee stock held by the
public So. 7OO.OOO: sale of $:S 1913 600 new
common stock $,,000,OOO; sale of %S,OO0.oOO
now bonds. %60OO.00O: total S23.2o0,OOO.
The cash expenditures are estimated at:
For floating debts and equipment notes as
estimated January i, 1913. SlZ,9OoWW:
new construction and equipment on Rich
mond and Danville and East Tennessee
system, estimated during two years, say
SIS OOO. 600 leaving to provide for the OK
pense of reorganization and tor any contin-
gencics surplus to be available for the
general purpose of the new company, ~,
$4,000 Total S23,20OOOO.
a sixteen Million Dollar Syndicate.
4 syndicate of $l6.0OO,U0O has been
formed TO guarantee subscriptions by secur-
;tv holders tor So, $4,000 common stock
of the new company at $50 per share and
for SIS. 100000 OF the new company'S > per
cont bonds at 80 per cent and accrued in
tcrest and to take the place and to succeed
to the rights of any holder of the Richmond
Terminal common stock and the East
Tennessee stocks, who shall not deposit
their stock and pay the assessment thereof
The feature of the plan Is the large
amount Of cash it raises, So, 1000 of
which only $6,SO0,0OO comes from selling
bonds. All the rest is from stock assess
monts and the sale of new common stock.
The plan looks for early dividends on
the new preferred stock. The earnings of
1891 would pay / per cent on the new pre-
ferred stock Eight millions i'll actual
money is to be spent at once for the new
EIn tInr
feature of the plan is that it provides am
pie means for all future needs.
All the railways will have 10 be fore
closed and foreclosure suits will be vigor-
ouSly pressed.
Those conversant with the reorganization
and its prospects figure the new preferred
stock at Co The syndicate guarantees a
sale of SIS OO0.0O of the bonds ut s. per
cent and of $5533 900 common stock at
SIS per share so the minimum value of
those securities is fixed. Figuring the now
preferred stock as low as 80 per cent, Ter
minal securities are worth today about %
per cent for the SKIES 30 per cent for
the tives. 2S per cent for the preferred stock
and S 81 per cent for the common stock
The REORGANIZATION Committee.
The reorganization viii be conducted
under the supervision of DreXcl Morgan
q Co.. through a committee consisting of
MesSrs. C. II. Coster, George Sherman and
a !. Thomas.
Mr.. Costcr is a member of Drexel, Nor
gan & Co.. and A j. Thomas has close
relations with that firm. Mr.. Sherman is
vice president of the Central Trust Com
many of New York All the stock of the
new company is to be put under a seven
wear voting trust, the voting trustees to be
named by Drexel, Morgan x Co. Upon the
announcement of the plan with the proposal
to assess common stock $3.50 per share
there was rush to sell that stock, and the
price dropped to 3-S.
Drexel, Morgan x Co. have so much
faith in the future of this enterprise that
they put two-thirds Of the new money be-
hind'most of the present investment.
THIS WAS UP NORTH.
A Mob In Michigan Lynch Man for Rapo
and Drag His Body in the Streets.
Comma, Mich, May 24.-William Sui
Ivan the farm hand who so brutally muir
dered his employer, Layton Leech, and
murderollsly assaulted the lat, er' 5 wife, paid
the penalty of his crime last night. He was
taken from the jail and lynched at 9:4U
o'clock p.
The mob consisted of over 800 men.
who shouted themselves hOarSe as the body
daugled at the end of Il rope.
BY means of sledges the Jail was soon
broken open by the mob. y moose was
placed around his neck and the crowd
dragged him through the jail corridors to
the big Jail yard and to low, marshy