Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-01-19
GEORGIA CENTRAL.
RAIL ROAD AND BANKING COMPANY
PLAN OF REORGANIZATION.
Report OF tn. Committee Charged with
the Mstter-rstaiis of the Proposi-
tIon to Stockholders.
[Br telegraph 70 the Dispatch

NEW YORK. January IL. The Reorraniza-
ton Committee of the Central Railroad
and Banking Company of Georgia, OF which
II. 4. Hollins is chairman. has finally made
its report and lodged the plan II has formu-
lated with the Mercantile Trust Company
for execution. This committee has tull
and absolute right to declare the plan
operative upon the whole system or
upon any part in respect OF when
IN their Judgment sufficient deposits shall
have been made or secured to insure sue
cess. IL il the purpose OF the committee
TO form an underwriting syndicate 20 carry
ont and make effective the plan, ana 10
secure and guarantee the same, and more
particuiarlv To secure the conversion OF
the tripartlte bonds of the secured noat-
ing debt into securities OF the new capital
IL 10 proposed to organize a new corpo,
ration under The laws Of the state oil
Georgia. This corporation VIII nave
capital stock of $50 900, 600, divided equhlly
into preferred and common stock. When
in any year the preferred stock shall nave
received per cent. dividends the common
stock shall receive all net earnings declared
as dividends thereafter in such year up 10 y
per cent, and the balance of DIVIDENDS De
clared will be divided equally between the
two classes of stock. 1T IL proposed also
that the company shall execute. o hrst
mortgage, under which $4,000 OF per
cent. 1OU-year gold bonds Will be issued;
This issue. together with the preferred ana
common stock. will be used in exchange
for the several existing securities, ana IoI
the requirements of reorganization anu
betterment. :,
II "a proposed that the mortgage shall
give the right 10 create bonds OF the same
series. with a like lien, 10 the additlonai
amount of s. 900. 600. to be issued not TO
exceed Sl,0O0,OOO in any year, for turther
additions, betterments, and improve
ments; SO that the net earnings OF the
new company may be devoted immediate
IL 70 the payment of the interest upon the
funded debt and of dividends upon the
capital stock Of the company. =,
Its stated to be the unanimous OPINION OF
the Reorganization Committee, OF the re-
celver. and OF the Board of Directors OF
the Central Railroad and Banking Compa-
ny OF Georgia, that all interests nave re-
ceivod equitable and fair consideration
under the proposed plan. II Is essential
that prompt action be taken IN the de-
poslt Of the various securities. 10 MAKE
the plan operative II would naturally De
necessary TO sever the main stem OF the
| Georgia Central railroad from the allied
roads. The object of the plan Is that the
system shall BE- preserved IN lts entirety,
Under the proposed reorganization the
| fixed charges VIII be so reduced, with the
property operated as one system and
under one management and with attending
economies. a to be easily met and allow
Within a reasonable time the payment OF
| dividends upon its stock. The immediate
| deposit of securities with the Mercantile
| Trust Company. of New York, is requested
50 soon as the SAID company shall nave
slgnIfiel its readiness 10 receive the same
| and to issue It's negotiable securities there
| for. Application will be made TO list such
| certificates upon the New York Stock tx
! change.