The times. [volume] (Richmond, Va.) 1890-1903, 1893-01-19
REORGANIZATION PLAN
OF THE Central RAILROAD AND
BANKING COMPANY.
The Committee Has at Last Made its Re-
port and Lodged the Plan with the
Mercantine Trust Company.

NEW YORK, Jan. 1s.-The reorganlza-
tion committee Of the Central Railroad
and Banking Company OF Georgia, OF
which II. +. Hollins is chairman, ha
finally made it's report and lodged the
plan IL has formulated with the Mercan-
tile Trust Company for execution. This
committee has full and absolute right TO
declare the plan operative upon the whole
system or upon any part, in respect OF
which, in their Judgment, sufficient de-
po sits shall have been made or secured to
insure success. 1t is the purpose OF the
committee to form an underwriting syndl-
cate to carry out and make effective the
plan and to secure and guarantee the
same. and more particularly to secure the
conversion of the tripartite bonds OF the
secured floating debt into the securities OF
the new company. 1t Is proposed to or
ganize a new corporation under the laws
of the State of Georgia. This corporation
will have a capital stock of $50 QOO d.
vided equally into preferred and common
stock When in any one year the pre-
ferred stock shall have received per
cent. dividends the common stock shall
receive all net earnings declared as divi-
dends thereafter in such year up TO 8
per cent, and the balance OF the DIVIDENDS
declared will be equally divided between
the two classes of stock.
II Is proposed also that the company
shall execute a first rate mortgage under
which $40 900, 600 of per cent. one hundred
year gold bonds will be issued This, to-
gether with the preferred and common
10, In, e,nn
existing securities and for the require
ments of reorganization and betteFment.
7 It Is proposed that the mortgage shall
give the right TO create bonds of the same
series with a like lien to the additional
amount of S. O00. 900, to be Issued not to
exceed 81, 600 900 In any year, for further
additions. bettermenss and improvements,
80 that the net earnings of the new COM
many may be devoted Immediately TO the
rayment Of interest upon the funded deot
end OF dividends upon the capital stock
OF the company. 1t is stated to be the
unanimous opinion Of the organization
committee, receiver and OF the board of di-
rectors of the Central Railroad and Bank
ing Company that all interests haze re-
ceived fair consideration under the pro-
posed plan. IL is essential that prompt
action be taken in the deposit Of the
various securities, and to make the plan
operative would naturally be to sever the
main system OF the Georgia Central rail-
road from the allied lines. The object Of
the rial is that the system shall be pre-
served in its integrity. Under the pro-
posed reorganization the fixed charges
will be so reduced with the property oper-
ated as one system and under one man
agement and with attending economies,
as TO be easily met, and allow, within a
reasonable time. the payment of dividends
upon its stock.
Prompt deposit with the Mercantile
Trust Company of New York Is re-
quested so soon as the said company
shall have signhed its readiness to re-
ceive the same and to issue its negotiable
securities therefor. Application viii be
made to list such certificates on the New
York Stock Exchange.