The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-07-01
THE CENTRAL'S NEW PLAN
Has Been FaVOTably Received, and Is
Sure TO Go Through.

Proportions in Which the New Sc
curities viii Be Distributed Every
body Seems Satisfied Mr.. Conner
Has Done Great Work for the Prop
erty-Row Will the Reorganization
Be Carried Oute
The funding plan for the reorganization
of the Central railroad properties, as
published in yesterdays MoRNING News.
was generally commented upon yesterday
by those interested in the roads affairs.
and, so far as can be learned all the com
ments are favorable
If the rest of the plan, or the appor-
tionment Of the new securities among the
present security holders, is as happily
made, there will be little doubt about the
plan going through with rush The
holders of the old securities have been
informed in a general way what they will
get, but as yet the statement of definite
proportions has not been given out.
1t is considered that the plan is based
on an annual earning capacity Of about
S2,000,0O0. This would give the certif-
Gates of indebtedness a good show TO Sc
cure interest, as it would have plenty Of
room for the income bonds to share in the
earnings, and that is what the debenture
holders expect to get.
SOME MISTAKES IN THE FIGURES.
The figures sent out from New York TO
the Associated Press contained some
errors, which were generally noticed and
commented upon.
Besides the issue of S70O0,000 first
mortgage per cent bonds, the issue of
consolidated bonds contemplated is Sl3,-
600, 600 instead of { 300 900 and the issue
of guaranteed bonds graduated from ?
per cent. to increase onc-half Of / per
cent. each year is TO be $1,000, 900 instead
of 81 100000 as stated. The issue ofithese
amounts is required in order to pay off
the Indebtedness of the road This would
put mortgaged Indebtedness Of $780,
200 on the property on which ulti-
mately an interest Of per cent is to be
paid, making a total in fixed charges of
81 ,500,0 600 The first year these charges
would be only 81 ,250. 600, as the $1,000. 900
second mortgage is to bear . per cent,
increasing by One-half of per cent. each
year
After the first mortgage of 1000 600,
ana the two second mortgages amounting
to 1923, 600 900, would come the $4,000. 600
income bonds, which the plan proposes,
and then the Sl50000OO common stock
The interest on the income bonds would
of course, depend on the power Of the
property TO earn more than the amount Of
the fixed charges on the first and second
mortgages OF course, il is expected to
make the Southwestern and Augusta and
Savannah earn enough. or more than
enough, to pay the per cent. TO be guar
anteed the stock Of those roads, amount
ing TO $3.50 600 in the case of the first. and
500, 600 in that of the latter
MUCH INTEREST IN THE PROPOSITION.
Much interest centers in the manner in
which IL is proposed TO appOrtiOn these
new securities in exchange for the old.
The plan, so far as published, is
taking well" said Director George j.
Mills of the Central. The interest now
attaches largely to the proposed division
of the new securities We want TO know
Just what the debeutures are going to re
ceive. | am informed that they will be
given income bonds, and that the ex-
change will probably be made dollar for
dollar The tripartito bonds and inter
est viii take up -, 900 of the first
mortgage. and there remains 81 300, 600
first mortgage bonds to be disposed Of
Perhaps they are TO 20 to the holders of
the floating debt, together with graded
bonds, to make up the difference.
There is no doubt about the South
western being well satisfied with the
proposition offered. With the road en-
tirely freed from debt a guarantee of
per cent is all the stockholders could ask.
Both the Southwestern and the Augusta
and Savannah, under these conditions.
would be free, and if any breach of the
contract should arise they would be free
TO withdraw unincumbered. l know of a
good many who are buying Southwestern
stock right along They have confidence
III IL and believe ii Will pay.
THE COMMON STOCK
81 believe il is intended togive the COM
mon stock a good footing. and that il will
receive a good exchange in the new COM
mon stock to be issued The market in