The Pickens sentinel. [volume] (Pickens, S.C.) 1871-1903, 1894-09-13
THE NEW SOUTHERN
OPENING OF A GIGANTIC SOUTHERN
RAILROAD ENTERPRISE.

OPENING OF A GIGANTIC SOUTHERN
RAILROAD ENTERPRISE.
The Now Southern Hallway Company an'
the Many Issilroads that Enter Into IT.
OBSERVATION-DISCLOSURES Fixed Charge,
and a Good Businets Outlook,
New York, Sept. Con Saturday
3. the lst instant, the reorganization of
the Richmond Terminal system was
definitely and formally completed, and
the last Of the many properties which
under the plan Of reorganization have
lost their unhappy and unfortunate
Identities and become merged In new
and propitious enterprise, passed into
tho possession Of the Southern Railw ay
Company. Last Saturday, therefore,
marks, for all practical purposes, the
completion Of the reorganization; and
q consideration of the situation is,
theret9rfS, opportune, particularly when
it is Borne in mind that the event is
the most notable that has taken place
In the history of American railroads,
and tbatits bearing upon every South
ern business interest Is of vital import
ance.
The Southern hallway Company op.
crates $500 miles Of railroad and about
loo miles of water line. With the ex-
ception Of 49I miles all the system is
owned by the company, and the here
tofore complicated and expensive plan
OF control by majorities, wholly i'm.
practicable and unfortunate in It's op-
Grafton and sure to make enemies
among the minorities, is done away
with. The old Richmond Terminal
Company did not own any railroad at
all, and the much Vaunted (but intrin
sically worthless) Richmond and Dan
Vile owned only 145 miles. The rest
OF the Richmond and Danville 81 s. tenn
was made up of some thirty separate
companies, ranging In length from six
to e52 miles. Efficiency and economy
were impossible on this basis, which
also afforded good opportunity for Oh.
Jectionable methods of accounting.
The organization of the East Tennes-
see was more compact, but it, too, left
much to be desired.
AS result of the reorganization over
thirty corporations, whose affairs and
securities were interlocked in every
conceivable way, and in almost hope
\ lesS confusion, are united in one COM
pany. Thirty Boards Of Directors and
thirty sets Of separate accounts disap-
pear simultaneously. The original plan
was dated May l, 1893. it was issued OH
May 23, 1893, and the response Of Sc
curity holders was prompt, and by tho
middle of June. 1893, success was as
,sured so far as their corporation was
concerned.
The summer and autumn Of 1893 par,
alyZed the South, in common with tho
rest Of the country, and TailI Dad earn
ings shrunk greatly. New conditions
and new complications we're presented,
and the problem became one of dealing
with bankrupt receivers as well as
bankrupt corporations. by strenuous
efforts everything was held together,
and as soon as possible some amend
ments to the original plan were pro-
mulgated, mainly to solve the financial
problems Of the receiverships, and also
to cut down the interest charges OF the
reorganizad company pending a return
to normal conditions.
These amendments were made public
on March 1, 1894. and they were so rea.
sOnable in character that they were
quickly accepted by the security hold
f9rs, and the reorganization was at once
pushed forward with such rap1dity that
within four months tho new company
was formed, and now, within two
months more, the last Of the property
comes into Its possession-1,5 800 miles
of railroad which, exactly six months
ago, had almost dropped to pieces, and
which but for the strong hands that
held the properties together during all
the financial troubles, would have drop
ped to pieces, are now brought into one
compact and efficient company.
The new company is organized under
charter granted by the Legislature Of
Virginia, supplemented by its conform
ity to the laws Of all the O,ber States
In which 1t owns property.
The reorganization has involved two
trustees sales, yiZ.:
Richmond and West Point Terminal
Railway and Warehouse Company.
trustees sale under 6 per cent col.
lateral mortgage.
trustees sale under 5 per cent. col
lateral mortgage.
one receivers sale, VIZ.
Richmond and West Point Terminal
Hallway and Warehouse Company.
Zen foreclosure sales, viz, covering
Richmond and DanvillG and its leased
lines.
East Tennessee, Virginia and Geor-
gia (under two mOrtgages).
Charlotte Columbia and Augusta.
Columbia and Greenville.
Louisville Southern.
Georgia Pacific.
Western North Carolina
. NorthWestern North Carolina.
Oxford and Clarksvive.
Clarksville and North Carolina
Six conveyances without YorocIoauro
viz: '''o
Atlantic, Tennessee and Ohio.
Richmond, York River and CSeaa.
peake. "'
Washington, Ohio and Western.
Piedmont.
Statesville and Western.
Oxford and Henderson.
And we understand that sOme half
dozen Minor sales and as many more
conveyances of other kinds are now in
progress In order to perfect tho work
ties now merged into tho Southerr
Railway Company were covered by