New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-24
TO REORGANIZE TERMINAL.
DREXEI4MORGANS NEW PLAN ANNOUNCED.
DETAILS OF THE EXCHANGE OF sECuRITIEs-A
GUARANTEE SYNDICATE.

DETAILS OF THE EXCHANGE OF sECuRITIEs-A
GUARANTEE SYNDICATE.
The long.expected announcement OF the plan for
the reorganization OF the Richmond and West Point
Terminal Railway and Ware house Company and It's
constituent railroads yesterday from Drexel.
Morgan Il Co. The not well received at the
stock Exchange, all the Terminal securities suffering
declines. This explained by the disappointment
felt at the placing OF Substantial assessment upon
the common stock. Bankers generally considered
that the scheme would be carried through. Tho
Reorganization Committee selected Is composed OF
Charles II. Coster. Of Drcxel. Morgan Co.; George
Sherman. vice-president OF the Central Trust Com
pany, and Anthony J. Thomas.
The reorganization plan proposes 10 form new
railroad company 10 acquire control OF the kich-
mond and Danve. and the East Tennessee, virginia
and Georgia systems. For the present the CenUal
of Georgia system IS ignored. The new company Is
TO Issue first onsolidatcd mortgage and collateral
trust lOO-year per cent gold bonds to the amount
OF $40 100000. The amount may be increased
with the consent OF the stock trustees 10 acq"ie
the Georgia Central system and the Cihcihhai
southern. There VIII be $75.OOO,OOo D per cent
non cumulatve preferred stock. and Sl0o
common stock. The stock is 10 be held bv thre3
trustees, appointed by DrcxeI, Mo- gan d No'' ior
five years, for such further period Us sn"i e"P'c
before the preferred stock shall have pao per ce"'
dividends In year. although the sloch u"''ee'
may, In thcir discretion, deliver the sloch NJ any
earlier date. The bonds arc TO be uscd Is loho"s'
3,e43 900 to acquire pay oil undlsturoed oohus
and guaranteed stocks OF the Richmond ana DhViiie
system. and SlOGjl 900 to acquire the undlsturbed
stocks and bonds OF the East Tennessee sys'em'
Si214s0 900 for $23,l40,OO0 securities OK the ilch
mond and Darvlle. ana RSO5OoOO for East len
ncssec securities 70 be read)usteo' SI"-''oo'
for Terminal bonds SSOoo,0oo LOT SUI,
scrlption. underwater by syndicate al 90 anu
accrued interest; 53s3OOO to be reserved or new
construction, betterments equipments, ETC. 'o'al
$4,000 600. The preferred stock Is 10 oe useu
as follows 500 $50 600 for Terminal bonds ana pre-
ferred stock and Terminal stock assessment 10 '"7o'
900 for Richmond and Danvie and East Iehhe''ee
readjusied bonds; S30G3OOO for assessment OH au
adjustment with East Tennessee stocks Slo,'o.'oo'
for reorganization purposes ana new acq"''"i""''
total s7J,OO0.OOo The new common stock Is 70 oe
used rs follows s76,454.OOO for Terminal BONDS anu
stocks; S340s 900 for Danville and East tennessee
disturbed bonds; s2i,427,ooo for East Tennessee
adjusted stocks 1888 900 for subscription, under
written by a syndicate at 10 per cent, S.-''lo'VoV
for reorganization and acquisition total *lVoooV'oV"'
The proposed exchange with the Richmond Ter
mnal securities is The present per cent bonas 10
receive 81 per cent IN new j pc" c"r' hoEH3 ana w
per cent In new preferred stock present per cent
bonds 10 receive 20 per cent In new preferred STOCK
and 30 per cent in new common stock present pre-
ferred stock TO receive 10 per cent In preferred
and 81 per cent In new common stock. and present
common stock Ia receive 100 per cent In new common
stock and II IL per cent In new preferred STOCK lot
the assessment OF $40 so n share. The East
Tennessee Virginia and Georgia first preferred STOCK
OIL payment Of assessment OF 10 share VIII receive
II per cent In preferred stock and 50 per cent
in new common stock; second preferred stock, an
assessment Of 10 a share will receive pea cent In
new pr, lerred and 20 per cent In new common STOCK
and common stock: on assessment Of 70 a share, VIII
receive per cent in new preferred and W per cent IN
new common stock.
The cash TO b. raised under the plan (Sll.45oOoo
from assessments and 81 500, 900 from sale OF new
common stock md bonds amounts t. $23.c5o,
OCO. This Will be used to pay $l20Oo0OO floating
debt and provide for as 100000 construction in
two ycnrs leaving so.33OOoO FOR reorganization
purposes and contingencies. An underwriting syn
dicatc has been formed 10 guarantee subscriptions for
sI:}. 80: 900 common stock ut IL ana % oOO,-
OCO new bonds s. I'm order TO succeed to the rights
Of nonassentlng security holders OF the present sys
TEN.
1t is calculated by Drexel. Morgan & Co.. that
on a conservative estimate the new preferred stuck
should command 30 In the market. The syndicate
nndcrwriic, The new common stock at 10. On this
basis the equivalent value of the existing Terminal
securities and stocks are estimate rs follows:
COMMON STOCK
New common stock. .Larc for shse =, 90
Total ............... -
IL %
Present value common rs 20
PREFERRED STOCK.
New preferred stock. IS per cent at 5C..."..$la 30
New common stock. 60 per cent at i5........." go
r,,.ou, value preferred IS
TERMINAL PER CENT BONDS. 49,, ~,
New preferred stock. 20 per cent at 5O..... $50 W
New stock. 80 per cent ut l5-....-..... *oo
Present value per honds. f59 %
TERMINAL PER CENT BONDS --
bonds. 81 e-o 80
New preferred 80 per cent at 3d. ~ W