The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-05-24

are worth to-day about 15 per cent. for
the skies, 30 per cent. for the iives. . per
cent for the preferred stock, and S3{ per
! cent for the common stock
Immediate application will be made to
list the reorganization receipts.
The reorganization win be conducted
under the supervision OF Drexel, Morgan
& Co., through a committee consisting of
MeSSrs. G. II. Coster, George sherman and
A. j. Thomas. Mr.. Coster is a member Of
the firm Of DreXel Morgan & Co, and A.
j. Thomas has close relations with that
firm. Mr. Sherman is vice president of
the Central Trust Company of New
York. All the stock of the new company
is to be put under a voting trust, the vot-
ing trustees to be named by Drexel, Nor
gan & Co.
TO BE HELD IN TRUST FIVE YEARS.
All the stock to be issued is to be held
in trust for five years The East Tennes-
see. Virginia and Georgia stocks are to be
50 per share; second preferred, S6 per
share, and common stock 50 per
share. The whole theory of the plan is
to resuscitate the properties by enlisting
plenty of new money, by building up the
country, encouraging Industries, etc The
plan is infused with the idea that the
properties can be made prosperous, but
1t must be by the prosperity and
development of the country they serve.
Every reorganization heretofore has put
security given for new money ahead of
the old securities. Drexel, Morgan Il Co
have so much faith in the future of the
new enterprise that they put two-thirds
of the new money behind mOstof the pros
ent investment. AS the best indication
that they believe that with plenty of new
money enlisted prosperity can be Sc
cured, it may DO pointed out that while
they raise nearly S25, ,000, 900 in cash for the
properties, they prefer to take their own
compensation for the reorganization in
the lowest class of new securities, viz, the
common stock Here is nearly So, 900. 600
of new capital enlisted ia southern
railways and special provision made to
enlist more capital hereafter as needed.
THE PHYSICAL CONDITION
In regard TO the physical condition Of
the properties embraced in the system
DreXel, Morgan a. Co saw IAN expend-
iture of several million dollars should be
promptly made on these prop, rti IS for
equipment alone, but it is no use 10 do So
even If it were possible, unless additional
track and yard facilities are also pro
vided nor unless such enlargement of the
engine and car shops be made as will per-
nit the equipment being kept in order
All these matters are inter-dcpendent
and must all be considered in
the reorganization. 1t is intended
that the present disjointcd aud
complicated system shall give place to
one solid and permanent organization, but
in matters relating solely to operating and
traffic, 1t must be recognized that the
properties serve three great territorial
sections, viz: the Richmond and Dan
vile, the eastern slope of the Alleghenies
to and around their southern limits; East
Tennessee proper, their western slope,
and thence to the sea while the Alabama
Great Southern Qncluaing the @. N. O.
and II. p secures. tsgttE1 from and for the
west and northwest by way Of Cincinnati
and Louisville, The new organization
must adapt itself to these physical and
commercial features and preserve to
each system such a clear degree
of local executive independence in
matters outside of purely financial ques-
tiOns as shall insure the Identification of
each property with the territory from
which its business is derived"
OF the future of the new company to
be formed they say large earnings in the
future can be obtained only by modern
izing and enlarging the properties, so as
to increase their business and decrease
the proportiOnate cost of operation With
this done there appears no reason what
ever to doubt that such a degree of pros
perity can be brought about as will Justify
the various security holders for the con
cessions which they are now called on to
make.
The adjustment with the Terminal Sc
curity holders is as follows: Holders Of
per cent. Terminal bonds are to receive
35 per cent. in new per cent. bonds bear
ing interest from July l, 1893. and so per
cent. in new preferred stock
Holders of 5 per cent Terminal
bonds are to receive 20 per cent.
in new preferred stock and 30 per cent. in
new common stock; holders Of Terminal
preferred stock are to receive 35 per cent
in new preferred stock and 65 per cent. in
new common stock; holders Of common
stock are to receive 1919 per cent. in new
preferred stock and 100 per cent in new
common stock.