The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-01-20
PLAN WELL RECEIVED.
TIE CENTRAEs REORGANIZATION
FAvORABLY LOOKED UPON.

mate of the Value of the New Secu-
rites.
The statement of the Central railroads
plan of reorganization published in Yester-
days MORNING News was most interesting
matter. 1t was not only interesting to all
the brokers, bankers and business men Of
the city, but to the hundreds Of holders OF
Central railroad stock, debentures and
other securities Of the system. There are
more people individually interested in the
Central in Savannah than in any other city
in the country.
The collapse Of the Central railroads
finances is hard blow to many Of these
holders. some of whom depended almost en-
tirely for their income upon the dividends
from these Investments.
THE PLAN WE'LL RECEIVED.
Yesterday being a holiday, was rather a
bad day to find brokers aud bankers and
other parties who are capable OF expressing
an opinion as 10 the general features Of
the plan and the probabilities
of its success. Some few were
seen, however, but were not willing to be
quoted upon their estimates Of the plan.
The general opinion seems to be that 1t is as
fair a plan as could be expected under the
circumstances, and that it stands as much
chance Of being carried to a successful
termination as any that could have been
proposed.
The success Of the plan depends upon two
things, supposing the necessary financial
backing to have been already secured The
first requisite is the acquiescence Of a sufi-
clently large majority of the security
holders in the plan 10 make its completion
possible; and the second Is the ability of
those who have the matter in charge to in
spire the financial public with confidence
that the new securities which are offered IN
exchange for the present securities will have
market value equal 70 the estimates placed
upon them.
THE PLAN STRONGLY BACKED.
That the financial backing of the plan is
very strong is evident to all acquainted
with the standing Of the parties and cor
poratlons which have stated their willing
ness co cooperate in the undertaking.
The apportionment of the new securities
among the holders of the present securities,
as stated in the tables published in yester-
days MORNING NEWS, Is being studied with
considerable interest. 1t is admitted that
the dependent securities appear to have
been treated very fairly. The tripartlte
general mortgage bonds and the floating
debt having the first lien upon the property
of course receive the first consideration.
For 100 Of the floating debt the holders re-
CelNe lSO per cent. ID the new DODQs and AZ
per cent. in the preferred stocg. Estimat-
ing the new bonds at so on the 100, the pre-
ferred stock at 40 on the 100, and the COM
mon stock at IS, the holders of the floating
debt receive ll2 for 100 OF their present
holdings. The first mortgage bonds are
given the same apportionment.
The collateral trust per cent. bonds get 100
IN new bonds, % in preferred stock and 20 in
common stock, or a total OF IS per cent. 10
estimated market value. The Ocean Steam
ship Company bonds receive a total of 0915
on the lou in new bonds, preferred and
common stock. The Montgomery and Eu-
faula 9 per cent. bonds get 1887, the Co
lumbus and Western per cents. the same,
Augusta and Knoxville per cents. 100,
Columbus and Rome first per cents. 20,
Mobile and Girard first per cents $50,
Mobile and Girard first per cents. sos
sAvANNAH's GREATEST INTEREST.
The stocks and securities in which Sa-
vanpah is most interested are treated as fol-
lows: Augusta and Savannah per cent.
stock. 100 In new bonds 20 in preferred
stock, 40 in common stock; estimated value
lis; certificates of Indebtedness (debentures)
so in new bonds. 70 Ia preferred stock and
~ In common stock, market value IS; Sa-
vsnnah and Western consolidated 5 per
cent. bonds, so in new bonds, 80 In pre-
ferred stock and so Ia common stock, value
oI/zs NOubuWchkein ThltfOhQ per cent,
stock, 100 In new bonds, 60 in preferred
stock and 40 in common stock, value
ia; Savannah and Atlantic Tybee
railroad) first 5 per cent. bonds, 50
in new bonds and so in preferred stock.
value 60. The Central main stem stock
gets 200 IN the new com mon stock, which is
worth at the committees valuation so.
Ii is the general opinion that most Of the
dependent securities have been treated very
fairly, though some holders have different
view. If the values estimated by the COM
mittee can be realized for the new securities.
1t would appear to be to. the advantage OF
the security holders to make the exchange.
as the market value of the securities re-
ceived would be greater. except in one or
two instances, than the market value of the
securities at present in the hands of the
holders.
HOW THE BROKERS REGARD 1T.
The brokers, however, place a lower val
uation upon the new securities than those
given. Several brokers were seen ysster-
day. They estimate the new 1 per cent
bonds at 70 aud they think there will be no
difficulty in obtaining this for them. The
value OF the preferred stock was estimated
at from 30 TO 40, and that of the common
stock at from IS to 20.
Maj. A. L. Hartridge submitted
some estimates of the valua-
tions Of the new securities with
interest thereon upon the following basis:
New per cent bonds 20, new preferred
stock 40. new common stock 20. Under this
estimate Maj. Hartridge estimates that the
holders OF the present securities viii realize
upon them as follows: Floating debt and
tripartite bonds, new bonds equivalent TO
a, preferred stock equivalent to IS; total
100, income 9 per cent
Collateral trust, Sc, in new bonds, 70,
preferred stock 10, common stock 4, total
d; income AZ per cent
Eatonton railroad stock, in new bonds,
oo. preferred stock 20, common stock 6,
total 20; income SO per cent.
Ocean steamship 5 per cent. bonds, In new
bonds, 20, preferred stock 10, common stock
o, talot IS; income 4.90 per cent
Columbus and Western and MONTGOMERY
and Eufaula 6 per cent. bonds, In new bonds
20, preferred stock l6, common stock 6.
total 81, income s. 20 per cent.
Augusta and Knoxville per cent bonds.
10 new bonds TO- in preferred stock 20, total
w, income 81 per cent.
Debentures, in new bonds IS. in preferred
stock %. in common stock 8, total II, in
come 4. 10 per cent.
THE SOUTHWESTERN STOCK
Southwestern railroad stock, in new bonds
40. preferred stock "a common stock s, total
1D2, income $50 per cent.
Augusta and Savannah railroad stock. in
new bonds 20, preferred stock 2S, common