The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1893-10-04
THE THREE c's TO BE ORGANIZED
And Bonds and Stock IssGed to the Tuno
OF 100000 per Mile on the Road,
Real and Prospecdve-The Plan
in Detail.
Yorkville Yeoman.l

- ~O>~s'l
The recording of the deed of transfer
of the c., g. & G. r. R. reVives-a lag
ging interest in that road, as most Of
the townships through which it passes
from Blacksburg to Camden, in this
State, voted subscriptions to its stock.
Since the road passed into the hands
of a receiver, there have been many
plans of reorganization proposed.
The road is now actually passing into
the hands of the late purchasers, and it
is presumed will be reorganized accord
ing to the latest plan, which bears the
original date of August 2, 1893, and
| which supplements or supercedes all
previous propositions. A bondholder
who lives in this town is in receipt Of q
communication from the reorganiza-
tion committee dated September 18th,
inst, in which they submit this plan
and ask for his signature to the same,
stating in that communication that "a
sufficient number have already been
signed to make it effective"
It is estimated that to complete the
| road, pay all Indebtedness, and put it
in good running condition, will require
a cash expenditure of $s,032, 800. To
raise this amount it is proposed to issue
first mortgage bonds on the road, com.
pleted and uncompleted, at the rate Of
Sl7,5O0 per mile, making,a total issue
on $40 miles between Sumter, Sc,
and Ashland, KY, of S, ,925,0o0. To
each purchaser ofa S. 900 bond will be
given four shares of the par value of
500 each Of the capital stock, which is
to I've issued at the rate of SIS, 600 per
mile. Subscriptions for these bonds
| will be payable 10 per cent. on aplica-
ton, 25 per cent. on allotment, 25 per
cent. three months after allotment, 20
per cent. six months after allotment.
and 90 per cent. nine months after al
lotment.
To provide. for the holders of the
present first mortgage bonds, two Sc
ries Of second mortgage bonds viii be
issred, series A and series B. Series a
begins to draw interest at the end of
the third year at per cent, the rate
increasing each year until the end Of
the seventh year, when it obtains 5
pei. cent. and there remains. Series B.
draws no interest for ten years, unless
the road makes it above all other ex-
penses; at the end of the tenth year it
begins to draw per cent. This will
require an issue of ST., 500 per mile, or
S., ,925, 900. Each holder of a present
first mortgage bond is to receive in ex-
change therefor one $500 new second
mortgage bond Series A, one $500 new
second mortgage bond Series B, and
seven shares Of the par value of Slo0,
each of the capital stock.
! The holder of unpaid interest cou.
pons in excess Of $3.50 is to receive
new second mortgage bonds. Series ~
and B, and capital stock in the same
| proportion as the holders of the present
frstmortgage bonds.
Counties and townships nave taken,
of the old stock, or have obligated
themselves to take sS7s9,S0e of the cap
ital stock, and the stock viii be issued
! to them at par. Holders Of present
capital stock will receive SIG. .66s on the
500 in new stock.
Under this scheme,I the road win
fhave bonded Indebtedness of SlI
$50, 600, and, the capital stock will be
s12, $50, coo, or, in other words, the road
will be bonded for ss5, 900 per mile and
stock issued to the tune Of $25, 900 per
mile on the road, completed and un-
completed, making 5000 per mt;e
upon which tie road will be expected
to pay dividends when in good running
condition.