The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-03-02
A NEW PLAN FOR TERMINAL.
The ReOrganizeTS Modify Their First
Plan.

Participating in the New Scheme.
The Macon and Northern Road One
of Those on the List.
New York March 1.-The Drexel, Nor
gan * Co. Richmond Terminal reorgani-
zation committee have picked their flint
and determined to try it again. After
business hours to-day the committee is
sued a new pamphlet entitled "Plan of
REORGANIZATION as Modified
The notifications are numerous, but
not radical. The committee admits the
tmpossibility of carrying out the original
plan. but insists that with alter atoms
now recommended, auccessful reOrganiza-
ton will be promptly accomplished, and
70 the inestimable advantage of all con
cerued The changes now contemplated
have, according to the committee, been
made imperative by the disastrous
financial conditions which have
prevailed throughout the country ever
since the original plan was published and
the consequent great decrease in earnings
of the railroads included in it. Among
important changes now proposed is the
leaving out of the Cincinnati Exten-
sion. the Memphis and Charleston, and
some other lesser lines. The assessment
on Terminal common stock is reduced
IRON Sl2.50 10 $40 and a reduction in the
assessment on East Tennessee common
stock is also made.
THE RECoMPENsE FOR ASSESSMENTS.
Again, whereas the original plan pro-
yided that new preferred stock should be
given dollar for dollar for assessments, it
is now proposed to give 70 per cent. in
preferred stock and 25 per cent. in bonds
for such assessments.
A temporary scaling down of fixed
charges from the amount estimated under
the old plan is to be effected by requiring
various securityholders to fund into pre-
ferred stock some coupons of the new
bonds they receive The maiority of the
present underlying bondholders will be
required to make this concession.
The new system under the reorganiZa-
ton as now proposed, will embrace about
1900 miles, and the aggregate new CAPT
talization on it will be S10l, 000, 900 of
bonds, 5000, 600 of preferred and $780,
100000 of common stock.
The committee reports great
progress in all formal legal proceedings,
such as foreclosures, etc, necessary to
the reorganization plan.
1t appears that the notifications of the
plan now urged are just and reasonable,
and what is more, to the purpose if they
are not adopted reorganization will be i'm
practicable and the valuable properties
embraced in the plan will drift into ruinous
CQaOS, from WHICH IL WILL DG exceedingly
difficult, if ever possible, to deliver them
1t is, therefore, devoutly to be hoped that
all parties in interest will cooperate
heartily under the revived plan and that
reorganization mag proceed swiftly and
successfully.
The guarantee syndicate, which was
such an important feature of the original
pan, has, itself. been modified, though by
no means dissolved, as has been susDected
c-il1 nd Mt "a
of SlO,50OOOO in cash to insure the success
Of the modified plan.
sIGNERs OF THE PLAN.
The amended plan of reorganization is
signed by c. H. Coster, George S. Her
man. and Anthony j. Thomas, as a COM
mittee of reorganization. The original
plan excluded the East Tennessee, Vir-
gnia and Georgia. Cincinnati ex-
tension the Memphis and Charles
ton, and the Mobile and Birmingham
railroads. and the new plan excludes the
Chester and Lenoir, the Cheraw and
chester, the Spartanburg, Union of
Columbia, the Richmond and Mecklen-
burg, the Northeastern Of Georgia, the
AshevlIe and Spartanburg, and the
Macon and Northern railroads.
The committee says that al
though about 95 per cent. of the Richmond
Terminal stock has been assessed and the
"'0I 99llISLV 81 lar Us called mas Deen palQ,
ana also, though 10 a lesser extent, on
the East Tennessee, Virginia and Georgia
STOCKS, general feeling has prevailed
mat IN view of the change in the tinan-
cal conditions the committee should fairly
euoedYOr to tighten the assessment and
10 allow bonds for some portion thereof.
AN ASSESSMENT REDUCED.
IL has, therefore, reduced the assess
meHyS on Richmond Terminal common
and Last Tennessee common by 20 per
cent, IN amount, and instead of allowing
therefore, on preferred stock, it allows
Ior the amount Of all assessments on the
ne" OASIS, oae-fourth in bonds bearing
interest IRON Jan l, 1896, and three.
IodftIs in preferred stock trust
GeFuhcates. AS the assessments on East
tennessee first and second preferred,
originally fixed, were comparatively
Hgnt, they are not reduced in amount;
t ou1, IKE the others, they are allowed one
tsoury4 IN bonds and three-fourths in pre-
leiIed stock trustee certificates. The re-
UutJl0n IN the assessment represents
nearly the amount of money which
mas been received from earnings
ana applied to the payment of claims
when matured prior to the receivership
gu gu "Alch mad to be provided for out of
tHe assessment money. That portion of
nG uoaIlng debt, which is fully secured,
Hmul le PAID or purchased, principal and
- unrest III iuli, and the emergency loan
WI WI oe purchased or exchanged, principal
@u0 interest, IN the new bonds.
MUST PAY UP OR BE EXCLUDED.
AS the stocks or the Richmond Fermi- |
Ia ana Last Tennessee companies al |
re.uy On deposit, and on which assess !
- -l-. TO the extent already called have ,
',9' "eeh pad, the amount of such former
us "t-S WIN interest at u per cent. per an
I'm nom The date of call must be paid /
Q fa, oI oeiofe March 20, 1894, or such de-
tf"oI'e1 stocks will likewise be excluded
0 s The plan as now modified
r the uncdlled assessments, as
n ag9;.: modified, a further and
l'1'y'oHdl call is now made for IL IS per .
n stte on Richmond Terminal common
go fI95 per share of East Tennessee
T',--Nou stock, s. 80 per share on East
,,'l'S'ee second preferred stock, IS
4 nus ms per share on East Tennessee first
ra tsIi1l'ed stock, and the same must be
II al the Office OF Drexel,
To,-th " Co, % Wall street, /
CIV lotk, on or before March 20, 1894, /
r'l' s-4ment TO be rcceipted for on the
he. L'Al]atOn certificates, which must
4 N. -ISenUed for the purpose. The re-
4 In 1'-,'er OF the assessment win be called
Nia"ao equal installments payable on .
'1' - 1874, and July 20, 1894.
MUST COME IN OR BE SOLD OUT.
4 f. Ia case Of non-aceeptance of this modi- 7
/. L. I