The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-10-03
The PLAN ANNOUNCED.
How The Georgia Southern and Florida
Will Be ReOTGanized.

The Bondholders VIII Be Given Sc
ouritiss on a g Per Cent. Basis-A
Large Number of Them Have Been
Deposited and the Committee Ez-
poets All the Holders to Come In.
The Plan Deemed the Best That
Could Have Been Adopted-Col.
Smart Thinks the Street Opening
Matter Should Be Taken Up at Once.
MIR. H. p. Smart. chairman Of the COM
mittee from the bondhOlders Of the
G eorgia Southern and Florida railroad,
" no has been in New York, Baltimore
and other points for the last two months,
returned to the city night before last on
the City Of Macon from New York.
While away Mr. Smart has been look
ing after the interests of the bondholders
Of this road, and was in attendance on
the meetings of the committee in BaIti-
more, when the reorganization plan was
being arranged.
Something over $4,000 of the bonds of
this road are held in Savannah, and il is
a matter of some interest to the holders
to know just the status Of the roads
financial affairs.
THE PLAN N DETAIL.
The following circular issued by the
committee gives a complete and detailed
statement of the plan and is herewith
published in tull:
Baltimore, sept. % 1s94-To the Bondhold-
ers OF the Georgia Southern and Florida
Railroad Company; The reorganization com
mittee have completed their plan of reorgani-
zation, and now announce to those bondhold-
ers who have deposited their bonds with the
committee thatn, at the approaching sale Of
the road, the property shall / G purchased by
the committee, IL is proposed to form new
corporation upon the following capitalize
ton:
1, 100000 Of first mortgage5 per cent. 30
year gold bonds.
,. $50 shares first preferred per cent.
stock lpar value) S6s4O
3. 10, 1856 shares second preferred ) per cent.
stock par value) 8lOl5.6OO.
4. 40t0J shares common stock (par value)
$1,000 COZ
OF this it is proposed to issue for each bond
which has been deposited with the commit
tee:
$1,000 first mortgage per cent. bonds
200 in first preferred per cent. stock.
$50 in second preferred per cent, stock
SO in common stock
The first and second preferred stocks are
issued TO represent the overdue coupons and
the reduction Of the rate of interest on the
new bonds to per cent. The remainder of
the stock and bonds not issued to the bond
holders represented by the committed to be
placed in the treasury Of the company and
disposed Of only as may be necessary for the
discharge OF existing Obligations and in the
acquisition of properties which will be of
value to the system.
The committee have decided to close the
pool on the 18TH day Of October next. Up TO
that date the bonds may be deposited with
the Mercantile Trust and Deposit Company
OF Baltimore upon the payment OF So 90 on
each bond.
The circular is signed by Messrs H. P.
Smart, chairman, Savannah, Ga Thomas
B. Gresham, Baltimore, Md. d. Z. Herr
mann, New York; William Checkley
Shaw, secretary, Baltimore, Md. ; Charles
Watkins, Richmond, Va; Henry Rice,
New York Charles D. Fisher, Baltimore.
Md, and Skipwith Wilmer, counsel, Bal
timore, Md.
TO PAY THE BOEDHoLDERs PER CENT.
1t is hoped under this plan that the
road will eventually pay the bondholders
basis on which they were given 200 in
first preferred stock together with par
value for their bonds and interest, and
the bonds, as will be seen, were put at
per cent.
The second preferred stock was not all
issued to the bondholders as NAV be
gathered from the circular, but portion
of 1t held TO pay the expenses of the re-
organization and the costs of court. The
m n IN, fls.,1 r4,.%- s.
time and IL is expected that these costs
with counsel fees will be rather heavy.
THE BONDS BEING DEPOSITED.
Mr.. Smart represents about S53S, 0CO
of the bonds, about S5OO.OO of which are
owned IN Savannah. All of these have
been deposited with the Mercantile Trust
and Deposit Company of Baltimore ac-
cordlng to the instructions given in the
circular. Altogether about 4, 500, 900 of
the bonds have been deposited, and it is
confidently believed by the committee
that the other bondholders will all come
in and share in the plan. as nothing can
be gained by remaining on the outside.
and any delays which are forced upon the
plan by any discomfort which might arise
would only be that more costly to the
property.
ARRANGING FOR The SALE.
NC iuSSLlpu Ol inc SAFE OF GO6 ROAD
was taken into the superior court of Bibb
county about year ago by j. NJ Nc
1lghe, contractor of the Macon Con-
structon Company, the case being practi-
cally brought by that company to
prevent the sale on several grounds.
among them being the claim that the
bonds only covered twenty-six miles of
the road, and that the mortgage secur-
ing them could not be held on the rest of
1t. The superior court of Bibb county
decided IN favor of the reorganiza-
tlon committee and the decision Of
mat court has been affirmed by the
supreme court of the state. 1t remains
now only for the superior court to adopt
the decision of the supreme court as its
decision, after which the sale of the road
Will take place After the superior court
has acted, the matter of the sale will
nave to be advertised for five weeks be-
lore III can take place, and this will prob
ABLY be within the next two months.
Inc road, Mr. Smart says, is in good
condition, and its gross earnings are on
the increase The property is in a good
condition and is being kept so. Since the
reorganization plan has been formed the
bonds of the road have sold from S6tl to
So e aud are expected to 60 higher as it
progresses.
SHOULD BE TAKEN Up AT ONCE.
MIR. Smart is a member Of the arbitra-
tion committee which is to condemn the
DVDnRrfV n ha