The times. [volume] (Richmond, Va.) 1890-1903, 1893-05-24

virginia and Georgia stocks are TO be as
sessed as follows: First preferred, three
dollars per share; second preferred six
dollars per share. and common, nine dol
lars per share.
The whole theory OF the plan is 10 re-
suscitate the properties by enlistlng
plenty OF new money. by building up the
country, encouraging industries, &c. The
plan is infused with the idea that the
properties can be made prosperous. but
II must be by the prosperity and devel-
opment OF the country they serve. Every
reorganization heretofore has put the
security given for the new money ahead
Of the old securities. Drexel. Morgan *
Co. have so much faith in the future OF
this enterprise that they put two-thrds
OF the new money behind most OF the
present investment.
As the best Indication that Drexel, Nor
gan & Co. believe that with plenty OF new
money enlisted. prosperity can be Sc
cured. 1t may be pointed out that, while
they raise nearly twenty-five millions in
cash for the properties. they prefer TO
take their own compensation for reOrgan-
ization I'm the lowest class Of new Sc
curities-viZ.. common stock. Here is
nearly S25. 100000 Of new capital enlisted
I'm Southern railroads, and a special pro-
vision Is made 10 enlist more capital here
after as needed.
In regard 10 the physical condition
Of the properties embraced In the system,
Drexel. Morgan & Co. say: AN eNpen-
diture of several million dollars should be
promptly made on these properties Tor
equipment alone, but 1t is no use TO do
so. even II IT were possible, unless ad-
dittonal track and yard facilities are also
fFftnm
ment Of engine and car shops be
made as will permit equipment being kept
I'm order. All these matters are inter-
dependent, and must be considered In the
reorganization.
"It Is intended that the present dis
iolnted and complicated system shan
give place TO one solid and permanent
organization. but in the matter relating
solely 20 operating and traffic, it must
ba recognized that the properties serve
three great territorial sections, viz the
Richmond and Danville, the Eastern
slope Of the AlePhanies 10 and around
their southern limit; the East Tennessee
proper. their western slopes. and thence
TO the sea, while the Alabama Great
Southern dncludlng the c. n. o. ana
Texas Pacific secures the traffic from
and for the West and northwest by way
Of Cincinnati and Louisville The new
organization must adapt itself TO these
physical and commercial features ana
preserye 10 each system such clear
degree OF local executive independence I'm
matters outside OF purely financial ques-
tions as shall insure the identification OF
each property with the territory from
which its business IS derived"
OF the future Of the new company 70 be
formed Drexel. Morgan q Co. say:
Large earnings in future can be OBJ
tained only by undermining andeenlarg-
ing the properties, so as TO Increase their
business and decrease the prOpOrtlonate
cost of opeIati0a With this done there
appears no reason whatever 10 doubt
that such degree Of prosperity can be
brought about as will Justify the various
security holders for the concessions whieh
they are now called on TO make
The adjustment with the Terminal Sc
curity holders is as follows: Holders or D
per cent. Terminal bonds TO receive 30
per cent. in new per cent. bonds, bearing
Interest from July I, 1893, ana % per cent
I'm new preferred stock
Holders Of per cent Terminal bonds to
receive 70 per cent. in new preferred
stock and 30 per cent in new common
stock
Holders Of Terminal preferred stock to
receive 30 per cent. I'm new preferred STOCK
and O. per cent. I'm new common stock.
Holders Of Terminal common stock TO
receive u ID per cent. I'm new preferred
stock and 100 per cent. In new common
stock.