The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-11-16

The Electric Railway Reorganization
Plan Announced.

A New Issue of 5 Per Cent. Bonds to
Take up the s25o,ooo Per Cents. of
the Electric Railway, the $3.50, 900 Of
Savannah Street Railway Bonds and
the $500, 900 Of Consolidated Bonds.
The Latter Only Get 20 Per Cent. of
Face Value.
The plan of reorganization of the Elec-
trio Railway Company has been agreed
upon. and a committee appointed to carry
IL into effect The committee consists Of
j. S. Collins, H. c. Cunningham, J. r. An
derson, W. X. Wilkinson Jacob Paulsen,
r. A. Hicks, W. J. Lindsay. and W. d.
Simkins. The committee has fun power
10 carry out the plan Of reorganization
which has been agreed to by large ma
Jority Of the security holders of every
class.
An agreement has been made with the
Oglethorpe Savings and Trust Company to
act as trustee for the purpose of making
the exchange Of securities provided for
IN the agreement. The plan provides for
retiring all existing issues of bonds, and
in lieu thereof, TO issue $500 600 per cent.
first mortgage consolidated bonds upon the
entire consolidated properties. These
bonds are distributed as follows:
The holders of the $3.50, 600 of first mort
gage 6 per cent. gold bonds of the Elec-
trio Railway Company receive in exchange
an equal amount of bonds of the new
issue, and q per cent. of the par value
of their stock bonds in the stock of the
Brush Electric Light and Power Company,
of which the Eleceric railway holds sl25
OOO They also receive 20 per cent of the
par value of their bonds in capital stock
of the Electric Railway Company.
The holders of the first mortgage 6
per cent bonds of the Savannah Street
Railway Company viii receive in exchange
for their bonds an equal amount of the
new per cent bonds. This issue amounts
to S250,OO0
The holders of the 100000 consolidated
bonds of the Electric Railway Company,
which were issued at the time of the con-
solidation, will receive in exchange Is
per cent of the par value of their bonds
in bonds of the new issue.
This will leave $4,000 of the new issue
of bonds in the treasury, together with
$62 500 of Brush Electric stock which will
be used to pay off the floating debt of the
Electric Railway Company, which is
about $4,000. The company also possesses
certain unincumbered lands in the south
ern part of the city, and several other
small assets which can be used for this
purpose if necessary. The issue of stock
rmains the same, $500 900. The Savannah
Real Estate Loan and Building Company
owns a controlling interest in this stock
The trustees will be ready next week to
receive the deposits and issue negotiable
certificates for the same, which will be
used until such time as the new
bonds shall have been printed and
are ready to be issued. The certificates
are now being printed by the Morning
News. The plan of reorganization has
met with a very flattering reception. Out
of 100000 of bonds ofthe three classes
all except about $4,000 have already
signed the agreement and large por-
ton of the remainder are expected to
sign shortly. The Electric railway people
apparently fare a little better in the re-
organization than the bondholders of the
Savannah Street railroad. The former
were in somewhat better position than
the latter, however, as they were the
owners of the $l25,00O of Brush Electric
stock
The information as to the plan of reor-
ganization was given by Mr.. w w Mac
| kali, who had charge of the preparation of
! the plan, together with some of the
larger bondholders of the company. The
intention of the reorganization, Mr. Mac
kali said, is to complete the consolidation
| of the property intended when the Elec-
/ trio Railway Company and the Savan-
| nah Street railroad are united under one
! control