The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-07-02
CENTRAL'S CHARGES.
Receiver Conner Gives an Accurate
Statement Of What They Will Be.


To Start at 81 900, 900 and Be In
creased to S2,I5O,ooo by 1901.
Only S7,6oo,ooo Stock and S12,-
600, 900 Income Bonds to Be Issued.
Stock to Be Taken Up at Par, and
Debentures the Same in Income
Bonds-The Property to Be Operated
as a Separate Line-The Details to
Be Published in a Few Weeks-The
Road Will Be Sold-It Is Understood
Mr.. Conner Will Be President.
Rapid progress is being made with the
new reorganization plan of the Central
railroad properties, and the probability is
that within few weeks the details of
the plan will be announced TO the public.
Receiver II. NJ Conner returned from
New York yesterday morning, whore he
has been for the last three weeks en-
gagged in busy consultation with those
who are working out the plan.
None of the statements sent out from
New York with regard to the plan so far
have been authorized or correct. and
while the details of it win not be ready
for publication for some time, the differ
ent issues of the new securities have been
agreed upon, and Receiver Conner gives
correct and authoritative statement OF
the amount Of the fixed charges, and
shows where the securities stand. in
which the people of this section are most
interested.
FIXED CHARGES on THE PROPERTY.
"The details Of the plan have not all
hoo In 4
land in some respects the plan is not
all that | would like TO have had it.
but it was the best that could be done,
and / think will prove acceptable and will
treat with reasonable fairness all classes
of securities concerned.
The absolute fixed charges on the
property for the first two years will be
81 800 900, which. after two years, will in
crease at the rate Of $4,000 a year until
1901, when they will amount to ~. $50 900,
at which they will remain. Behind this
will come an issue Of =, 600 600 class A in
come bonds, bearing interest at per
cent, non-Cumulative, out of which the
debentures will be paid dollar for dollar.
and the remainder will be used in taking
up certain indorsed bonds.
Then there will come an issue of S4,-
600, 900 class b income bonds bearing in
terest at per cent non-cumulative.
TO COME AHEAD or THE STOCK.
"These income bonds will come ahead
Of the stock, making the total charges in
advance of dividends for the first two
years S2,50O,O00 which after that time
will increase at the rate Of $50, 900 year
until 1901, when it will remain at 81 1850
600. This is the total amount Of interest
charges that will come in before dividends
on the stock are paid
This amount covers the fixed charges
on the entire system. The reorganization
provides for the entire system. The Sa-
vannah and Western properties including
the Chattanooga, Rome and Columbus
railroad, the Macon and Northern and the
Savannah and Atlantic, are all to be taken
in. heChattanOoga, Rome and Columbus
Macon and Northern and Savannah and
Atlantic come in by reason Of the in
dorsement of the Central railroad on
their bonds The apportonment of the
new securities for the old in these cases
has not been entirely agreed on yet but
they will all be treated with fairness and
be given the best possible exchange un-
der the circumstances.
WHAT THE STOCK WILL GET.
There will be only - 500, 600 common
stock issued, which will be exchanged
dollar for dollar for the present common
stock Of the property. All the stock Will
share alike, but ahead of il will come the
fixed charges, amounting to, as ! have
stated, - 800 900, after 1901. With all the
systems of railroads working in harmony.
as they will do, | think it will have a ten
dency to increase the earnings of the
property
The certificates of indebtedness will,
as | have stated, receive dollar for dollar
IN income bonds, bearing interest at per
cent
THE Southwestern and the Augusta
and Savannah railroads will be retained
fEarH FsnVEH IEu=
cent. on the par value of their present
stock. They will be relieved Of all in
debtedness, ana the Judgment of about
81, 100000 againStthe Southwestern road,
on its portion Of the tripartite mortgage.
will be taken from it and assumed by the
system These roads will be operated
under new leases but will retain their
present charters and organizations
"Ihe savannah and Atlantic bonds in
which many of the people here are inter-
ested, Will be fairly taken care Of
EXPECT TO CARRY IT OUT BY OCT. l.
1t may be that the deposit of the secu-
rites will be called for before the details
OF the distribution under the plan are
given out | don't know, however, that
this Will be done, and at any rate it will
OF course be optional with the security
holders 10 support the plan or not as they
desire. | will say, however, that ii will
plan is not all that ! would like to have
seen 1t, but under the circumstances it is
the best that could be obtained and [
think the distribution of the new securi-
ties Will be upon reasonably fair basis
The details of the plan may not be
known for several weeks but it is hoped
10 have 1t ready for announcement within
that time, and il is the present idea and
intention OF those interested TO have it
carried into effect By Oct l. / hope that
It will be done within that time and it
seems reasonable to believe that il will be
so. The detailed work Of the plan is by
no means over. IL viii take sometime to
complete it and ] may have to return
o>New y ork soon, but as Capt HAYES is
on the spot and will look carefully after
the details, it will hardly be necessary,
unless some matter comes up which will
require consultation.
THE PLAN STRONGLY BACKED.
There will be notrouble whatever so
far as the backing OF the plan is CON
cerned. 1t IS perhaps the best il could
have. There are interested the three
large insurance companies of New York
the New York Mutual the New York
Equitable and the New York Life.
the New York Guarantee and Indemnity
Company, Drexel, Morgan 4 Co, the
Mercantile Trust Company and other
houses of high financial standing
LAS to the equipment and physical con
dition Of the property. it is good. but will
ha 5r1r,rovad hon ri t'r,,+ IL. ,..,- -, q, H..