The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-04-26
GEN. THOMAS TALKS.
His Plan of Reorganization in General
Terms.

Terms.
Gen. Samuel Thomas has been inter
viewed in New York on the subject
of a plan of reorganization for the
Central road. There is one thing in
the way of reorganization, he
said, and that is the attitude of the
stockholders OF the Southwestern rail
road. They seem to be disinclined to do
anything.
II have taken pains" said Gen.
Thomas. Ito see all the men who have
any control of the Southwestern railroad
in this city, but l can get no response
from them. They seem inclined to con-
tinue litigation, and TO desire to take
steps to sever all connection with the
Central. We have offered them a guar
antee dividend of per cent. on their
stock as basis of settlement-to settle
all litigation and put an end to all dis
sension. This is the very best that can
be done, and save anything for the stock
holders, and why they didn't accept it I
am at loss to see. l wish some one
would promise to do near so well for the
stockholders of the Central.
"The plan I PROPOSE" said Gen.
Thomas, lis simply to let those who now
own the Central continue to own it. We
propose to practically put it on its feet
again with reduced indebtedness, caused
principally by reducing the rentals on
leased roads and reducing the interest on
its security to basis that will be easily
earned by the road saving whatever
there is in the property over and above
the fixed charges now and hereafter
to the stockholders. am sure it
is the only plan that will be sue
cessful, and if itIfails the road will be
s)ld to the highest bidder and some one
will purchase it who can then carry out
plans without consulting many who are
now really entitled to be consulted and
ought to be. The truth is, l think, some
of the parties who are now hanging back
and trying to keep the Southwestern
people out of our reorganization would
rather see both roads go under the ham
mer than to see any kind Of reorganiza-
tion of either"
What do you propose to do with the
Indebtedness of the Central2" was
asked.
That has been practically all turned
over to our committee We have it well
in hand and under our control The
floating Indebtedness, the tripartite bonds
and all the underlying sec, urities amount
ing to over Sl5, 000,0 900, wi Il be wiped out
on an agreement in writing. For this in
debtness new consolidated per cent.
bond will be issued. The terms for the ex-
change have been agreed upon. In fact,
everything, as said before is practically
settled but the Southwestern matter.
If they hold out, we are at our rows
end"
Gen. Thomas expressed his belief that
Justice Jackson's decision in regard to
the South Westerns liability on the tri-
partite bonds would be approved. He
also referred to the Southwestern's en-
dorsement on the Montgomery and Eu-
faula road, and also said if the South
western proposed to do business indie
pendent of the Central it will have to
have rolling stock and equipment.
In regard to the Southwestern Gen
Thomas added. "They will start house
keeping with bonded Indebtedness of
from So ,000, GOO to 100000, without any
connections at Macon or Albany. They
viii have to earn the interest on this be-
fore the stockholders get a cent.
Il am surprised that our proposition to
take a guarantee of per cent on their
stock was not promptly accepted. Some
of them whom have talked to seem to
have an idea that they can make more out
of the road by taking it out and running
it alone"
II think, " said General Thomas, there
has been a great deal of side playing
about this matter, both with the Central
and Southwestern, looking to the future
control OF these properties. don't want
10 nave an Julug W 10 WIN Jue manage
ment ] haven't the time, but am inter-
ested in having fair settlement and will
do all l can to have it settled so as to
save all l can for the people who own the
road" So
''What do you propose to do with the
holders of debentures2"
They will simply come in as preferred
If the road earns more
than the interest on the bonds there will
be enough to pay them per cent. on
their preferred stock, which will !
lie exchanged dollar for dollar for the GER !
tihcates or debentures, as you people call !
them.
The plan.I have leaves the property in |
the hands of the present owners and cuts |
the rental of the Southwestern railroad |
from TO per cent. with guarantee of |
payment. | don't know of any other plan |
that has been matured. / don't believe |
there is any other plan, and l believe If |
the road is not reorgauized on this plan it
will not be reorganized at all, but will be /
sold to the highest bidder. This, think,
would be O great hardsbip,' !