The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-03-02
THE RICHMOND TERMINALCO
CHANGES PROPOSED ~ THE SCHEME
or REORG4NIzdTION

Assortment on tn. stock Reduced to sto
East Tennessee Assessments Also RE
auced-Ths UndrrwrIuna SyadIeste Cut
Down-Bsndhoidsr- Asked to Fund Cou
por,-The New rInn We'll Received
The Reorganization COMMITTEES announced
yesterday afternoon the notifications which
they have decided to mako IN the plan for the
reorganization Of the Richmond and West
Point Terminal Railway and Warehouse Com.
pany. The phlet Issued by the committee
gives full explanation OF the reasons for the
proposed changes. ana OF tho theory upon
which they were made.
The great falling on OF earnings In this past
eight months lie pointed out, and the fact that
earnings are still at very low level. with no
INN Mediate prospect OF . return to the figures
OF = year ago. on which the original plan was
based. It is. therefore. necessary TO provide
for additional indebtedness. as we'll MS for
future needs until earnings shall improve. To
do this surrender IL asked OF all back inter-
est, and all coupons for year or two me on
many Of the new securities going to properties
which cannot make good the arrears OF Income
slrsady accrued.
The m odihed plan embraces about 1900
miles. and the securities to be issued are adj
justed TO this new mileage. The amounts out
standing after reorganization. are estimated
at S1Ul, 900 600 bonds. $4,000. OOO preferred
stock. and $40. 1900. 90 common stock. The
fixed charges are scaled down to 81. 100. 900 in
1894 and 81 100000 In 1895. In 1890 and
attervard theT are restored to their level
under the original plan. The committee be-
lisve that these figures arc safe. and that sub
stantial earnings are likely to accrue for the
preferred stock.
The Temporary scaling down OF fixed charges
IL done By requiring various security holders
TO fund coupons on the new bonds accruing to
them and In most instances to tako preferred
stock for the coupons funded. Among those
called upon are Richmond Terminal tie. Rich
mond and Danvllle 5s. the Northwestern North
Carolina. the Oxford and GAINESVILLE. the
GAINESVILLE and North Carolina. Charlotte. Co.
lumbis and Augusta 0s. and the East Tenn.s-
see. Virginia and Georgia general mortgage
and first extension mortgage. The Last Ten.
nessoc. Virvinia and Georgia improvementand
equipment mortgage gets bonds for the
amount OF Its new coupons and for the interest
which was 70 be paid II in cash The Richmond
and Dsnvile debenture Us. which were not
disturbed in the original Ian. now surrender
the coupons from Oct. 1882. to Oct l. 1885.
mittee agree ny to make the debenturs mort
gage which is now an income mortgage Mt u
lotte. Columbia and Augusta % mortgage rs
fund three coupons into preferred stock.
Richm ond Terminal stock. $40 on Fast Ten.
hh .,s virginia and Georgia common stock.
mia and Georsia ir. IT. and second pTeferrsi
stock remains unchanged. Instead OF giving
only preferred stock for the am unt OF the as
the committee says that It recognizes the in.
sxpedieney under present con dltions OF call
months ago. and 1t gives bonds for one. quar-
ter Of the new assessment and preferred stock
tSs sesT cash sS5S5toT Snss "Ss
above the assessments to carry out the plan
and provide for the impIovements and new
has necessitated n corresponding reduction In
the amount Of common stock Of the new COM
place OF non5deposltIng stockholders is cam |
celled, and all the stockholders who nave not |
. iready deposited their stock are ruled out |
The Emergency Loan gets principal and In.
ba nsd az rev G6nGs ana the Heating debt will
The Richmond. York River and Chess Deake is |
for negotiation. An offer OF new
ably considered by most Of the bond aud
The committee expresses itself as conf
IDENTITY as before regarding the ultimate value |
are. well advanced. and that with the changes
Indicated above the reorganization can DO |
's 81 10. G@t psGm ns :s.,.m.r. .,
Terminal, % on East Tennessee common,
III,
sailed rs March 20 Gxiord and TlSrEsviie'
North Carolina and Danyille. and Western
bonds which are the only ones on which
be deposited BY the same date. The commit
zee makes further advance for interest on
Sio rsts snd L9asyIo a sGutssr and bo G55ssn
vss done last July.
The committed announces its intention to
@ GhmOSa sPmna IS IS srs sS
,Ii{ wound Up and all IT'S assets are owned
ne Richmond and Danyille is expected in
sw days. A decree for the East TshnessesIs
,ral in It's terms. has already been secured Tor
,hsped for quick and successful work, Ample
equipment and other improvements. which
viii add largely to earnings as well as diiIuse
:on large amount OF money throughout the
President Oloott Of the Central Trust Com
urity holders should be satisfied with the
modified plan, as Il was based on the lowest
:n sa%n HnF sS 81 a.: D.CPsrSi
lar an, Is fair and squad. aud win be an imme;
sSse S h r.. ns ys, sSgtheFn RsEo9d
'st out Of the woods. ON a sound basis, with
yer s.. o00; 600 IN its treasury and with fIed
ropeSie thss. 1s d.SrsseG P Pi%ss OF Ths
tree win take ,t much more favorable
ave passed through all the misfortunes
ossible to overtake a railroad company in
ne OF The T worst panies this country has ever
nterested parties. and their tTus value de-
sloped; No fear can exist as to exposures to
ONE; there can be none. Investors can take |
old Of these southern securities with more
onhdence. now that they know all the facts |
nd possibilities. than they can any others on
ne market II should be remembered also
hat these southern properties for the hrst |
ims In their existence are back ed by wealthy
lture management"
Mr.. IL. {. fahnestoek OF tho First National
ank said;
u" have carefully read the revised plan and
10 changes made bJ the com I'm ittes with A |
lew to ADAPTING It to the changed CONNER
al situation. lt seems To me to 10 abso-
ltelJ sound. and l cannot see any escape
ON the conclusion SO fOTcibly stated In the !
rst pages OF the plan. Ii is obvious that A RS
rganization upon the basis of earnings OF the
rsyious year would have broken down under
70 stress OF the general shrnkaEs, OF the Z
Ear lSA In the disposition to deal as ,
GENEROUSLY as possible with all the
ibordinAts lines Of TIE system. a NUM- I
81 Of roads wers first Included which a
Ut not indispensable. and therefore could not ]
! given guarantee. The omi ssion OF these