The morning news., 1894-11-03
The CENTRAL'S NEW PLAN.
The Southern Railway Company 10 Get
ali the New Stock.

How They VIII Be Distributed-Ex-
peoted That 1t Will Be Declared Effeo-
tive About Jan. 1, as There Seems
Little Doubt About Its Being Ac-
oepted-HoIders of Stock and Junior
Securities Fortunate - Mr.. Conner
Thinks the Plan Good One.
An outline of the new reorganization
plan of the Central railroad reached the
city yesterday in the New York Herald
of Nov. l. This outline is practically the
same as that first published in the Morn
ing News at the time when Receiver
Conner returned from New York after
consultation with those interested in the
plan. about three months ago.
The only new feature in this outline is
the change in the issue of stock which is
to be made s., 900, 900 instead of 81, 500, 900
the present amount, and all of which is to
be given to the Southern Railway Com
pany, now the majority stoc1holder, while
as will be seen, the minority stockholders
will be given income bonds of series B,
which will draw interest before the stock
will receive any dividends.
1t seems that it was deemed best to put
all the stock with the Southern Railway
Company this being the majority stock
holder. It's control could be no more
complete with all the stock than it would
be under the present conditions, and 1t
has been arranged to give the minority
stockholders what may prove to be a much
better and more valuable security.
Receiver Conner has information that
the plan is now in the hands Of the
printers and that it will probably be sent
out to those interested within few days.
He feels confident that the plan will 20
through, and looks upon ii as perhaps
the best that could have been offered. He
received a telegram from Capt. r. Somers
Hayes on his return from Atlanta yes
terday morning stating that the reorgan-
ization plan was progressing satisfactor-
lily and that nearly all the contracts had
been signed.
The Herald, Receiver Conner says,
makes a mistake in saying that the Cen
trail is to be taken in by the Southern.
1t has been stated all along, and the in
tention still is to operate the road inde-
pendently of the Southern Railway. 1t
will be reOrganized as a separate prop
erty and it will be operated as such.
The impression in New York is that
there seems to be no doubt about the final
of the Southern has been arranged for
through Messrs. DreXel, Morgan &, Co.
The negotiations have been chiefly with
Mr.. c. H. Coster, who represented Presi-
dent Samuel Spencer of the Southern COM
pany, and the whole plan it may be said,
has the approval of Mr.. Spencer. The ar
rangement is that Meesrs. Samuel Thomas
and Thomas +. Ryan, who will bring out
the plan, shall buy in the property at the
foreclosure sale, under the tripartite
bonds for the new company.
The Southern company will give up it's
holdings of old Georgia Central stock in
exchange for the entire issue Of stock in
the new company which will be reduced
to $5000,000, thus giving it undisputed con-
troll of the new company.
The Southern owns $4, 4,220 900 of the out
standing 81, 500 900 old stock of the Georgia
Central In view of the extensive scaling
down of interest the Southern company
will get a much more valuable asset
The other stockholders of the Georgia
Central win receive b income bonds as
compensation for their holdings, which
they would have lost anyway by process
of foreclosure.
The new securities are to be issued as
follows
1.-SIOO,OO0 of first mortgage fifty year
per cent. gold bonds. which shall be Il
first lien on the main line from Atlanta to
Savannah and an equity in the Ocean
Steamship Company.
2.-$l3 000, 600 of consolidated fifty year
per cent bonds, which shall be a second
lien on the main line and lien on the
leasehold securities owned by the Cen
tral, subject to all the existing liens; a
first lien on the Montgomery and Eufaula
and a second lien on the Mobile and ,Ii-
rard. The mortgage may be increased
2,WOW0, but not more than $500,0O0 a year
and solely for improvements and better
ments.
S.-s10oOO,oOO general nfty-year first
mortgage bonds, to be a first lien on the
Savannah and Western, Chattanooga.
Rome and Columbus and Macon and
Northern, and a third lien on the main
line and second on the leaseholds and
equities; to bear interest at the rate of
2la per cent. for the first two years from
Jan. l, 1895, and to increase thereafter at
the rate of one-half of per cent. until 3
per cent. is reached.
4-$350O,000 A income bonds and s75OO -
600 B income bonds, each issue to bear r
per cent, non-cumulatiye, to be of eo1laI
value, and the b bonds not to draw in
terest until per cent. has been paid on
the A bonds.
5.-$5,OOO.OOO of common stock to be de-
livered to the Southern Railway Com
pany,
6.-The Ocean Steamship Companz.'s
S,0o0,00O first mortgage skies, $3.50 600 col
lateral trust fives and the Mobile and Gil
rard N,OOO,000 frsts to remain UNCHANGED.
The S0oOC0) new first mortgage
bonds Will be used to pay off the old 7
per cent tripartite bonds, the Mutual Life
insurance Company being at the head of
the syndicate that takes the new bonds
The $lS,000000 new consolidated bonds
will be used to pay off upward Of $1,000 COO
floating debt, g. 100000 Montgomery and
Eufaula first mortgage per cent. bonds.
receivers certificates, reorganization ex-
penses and several minor items, amount
ing to $l,50000) more-or upward of So
600, 900 all told.
Il was these floating liabilities that con-
stituted the difficult problem Of the plan.
The transaction will be conducted, prob
ably, through the Mercantile Trust Com
pany. The chief members of the syndi-
cate are the Mutual Life Insurance Com
pany Mercantile Trust Company, Kuhn.
Loeb g. CO, and r. T. Wilson & CO.
The Southwestern railroad will be re-
leased from its obligations on the tripar-
lite bonds and also it's endorsement of the
Montgomery and Eufaula. through the
payment Of the latter, and II win be
leased in perpetulty at the rate of s per
cent per annum. The Augusta and Savan-