The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-02-07
The rsrnninars REORGANIZATION.

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The announcements that Drexel. Morgan
& Co. will undertake the reorganization of
the Richmond Terminal system gives very
general satisfaction, but no one ha5 any
idea what sort OF reorganization will be
proposed. The Richmond Terminal sys-
TEN is an immense one and the interests in
volved in it are vast and conflicting.
Drexel, Morgan & Co. have succeeded In
organizing a number Of great railroad
properties, but no one Of them approached
in magnitude the one they now purpose to
rehabilitate and place upon sound hnan-
ciAl basis.
There is good deal Of speculation as to
whether the Georgia Central will be In
cluded in the reorganization scheme which
will be proposed or whether the Georgia
Central stock, which the Terminal owns,
will be dealt with simply as an asset The
opinion appears TO prevail that the stock
viii be dealt with as an asset, and that the
reorganization of the Georgia Central will go
on under the plan that has been submitted
to the Central's security holders. There
are some VINO hold the opinion, however,
that an effort will be made to consolidate
all the properties Of the Terminal system IN
one great southern system. 1t Is said that
an unlimited amount OF capital can be OBJ
tanned for a scheme Of this sort. A few
days ago there were hints that the New
York Central and the Pennsylvania
Railroad companies were Soth ready to as
sist in the reorganization Of the Terminal,
each, of course. expecting to control it.
A. -
these hints the public viii not know yet
awhile.
The financial editor Of the New York
Times is under the impression from what
he hears in Wall street that a great south
ern system is TO be organized out Of the
Terminal wreck. In bis financial article IN
Sundays Times be says: 1.-THE chances are
that good deal of trading will be done in
the Richmond Terminal securities. as In
their present position they offer the widest
scope for speculation. The announcement
that Drexel, Morgan & Co. would under
take the reorganization, at the request and
with the cooperation of Messrs. Clyde and
Olcott, was great surprise, but it has been
we'll received by the street. 1t is felt that
this important matter is at least settled,
since all interests are now united. But
it is not yet publicly understood how
great these interests are, and how far
reaching are the plans in contemplation.
They involve the practical union of i'm
portant southern systems now apart and
more or less antagonistic. Out of this Rich
mond Terminal reorganization, as con-
templated, will grow a compact railroad
system extending to Florida, traversing the
most productive portions of the new south !;
ard it may be added, the combination will
have in it some of the wealthiest interests
of the north as well as Of the south. In fact,
it was the efforts Of certain leading people
here who brought about the reconciliation
between MIR. Morgan and the opposing
party; and it is well understood that all the
money necessary to carry out the plans pro-
jeoted will be furnished without the slight
est difficulty. There are bank accounts
to draw upon which, for the pur-
poses of this scheme, may be
said 30 be unlimited; and a
great southern system will be created as i'm
portant in the railroad world as the great
systems OF the north and west. The secur-
tiles Of the Richmond Terminal, therefore
while the property is in this state Of transit
ton. are legitimately speculative, In the
best sense, and hence likely to become very
active in the market" From the foregoing
the inference is that the Georgia Central
will be included in the reorganization
scheme. 1t is more than probable, however.
that no one is yet justified In saying that it
will be. 1t is we'll known that Drexel,
Morgan & Co said. when it was understood
some months ago that they were about to
undertake the reorganization of the Ternni-
nal, that the stock Of the Central held by
the Terminal would be dealt with az an
| asset.