The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-07-03
THE PLAN WELL ENDORSED
General Approval Of the Central'S New
Reorganization Scheme.

hNVA SunlLutlOu DNululOs
Only Case Where the Stock of an In
solvent Railroad Has Been Cared for
Without an Assessment or Without
Being Wiped out-Director Mills
Thinks the Junior Securities Have
Been Treated With Much Considera-
tion-A Belief That the Property
Will in Time Earn Enough to Allow
the Stock to Participate.
The new reorganization plan of the
Central railroad properties, as far as it
has been given out for publication, was
the topic of general discussion on almost
all sides yesterday, The publication Of
the statement given by Mr.. Conner was
read with interest everywhere and many
favorable comments were made upon it.
A large number of gentlemen interested
in the property and its establishment on
paying basis called on Receiver Conner
and expressed their approval Of the plan
and what he had succeeded in accom-
plishing That he has done a great deal
for the securities held in this section
there can be no doubt, and there is no
uOuOb budb IL IS dppItCldltu lIt pldA'do
outlined. meets with general approval,
which is no doubt source Of much graf
ification to the receiver as he has labOred,
with the point in view, as much as any
thing else. Of protecting the junior
securities That he has succeeded in do
ing this as well as could be done there IS
no doubt.
WHAT a DIRECTOR THINKS.
Director George J. Mills of the Central
II has % he'd q
work, as well, he thinks, as it could pos
sibly have been done
As for the stock. " said Mr.. Mills, sit
is certainly no worse off under the pro
posed plan than it is now, and there VIII
be some chance for il, whereas, before
this plan was announced, II had, to all
appearances, no show whatever. With
no cutting of rates, and with harmony
with the Richmond and Danville which
will be under the same management as
the East Tennessee, there Is no telling
what may be accomplished. IT is on this
to great extent that an increased earn
ing power must depend, and there is no
doubt, with such an agreement that the
Central's earning power will be increased.
If it is possible to make 81 800, 600, as we
have done this year, the earning power of
the property must be increased with no
cutting Of rates or Legitimate methods
of business and an army of soliciting
agents discharged. Under these circum-
stances there must be something for the
stock some Of these days.
"ln my opinion the Danville will endea
vor TO protect its majority stock, as
il is an important asset of the Southern
Railway Company l think, under the
circums tances, il anything, the roads Of
this company would throw business into
the Central instead of detracting it, for
the very reason that its stock is at stake.
THE PRopERTY's EARNING POWER.
81 am of the opinion that these condi-
tiOns Will yery much increase the earning
power of the property Under the plan
il has to earn for the first two years
SO, 500 600 before the debcntures can par
t1clpate Deducttrom this the income from
securities Sl7O, 600, and it is only neces-
sary for the property to earn from opera
tiOns 81 $50 600 in order that the interest
on the income bonds can be paid. If 1t
earns from operations more than this
amount in the first two years, the stock
would be able TO participate. The deben
lures come in next TO the mortgage in
debtedness, that is out Of class a Of the
income bonds, which would allow them
to participate, even though that full
amount We're not earned.
Bad as this year has been the road
has shown itself able to take care of its
mortgages under the new plan. and there
is little doubt that il can do more when
business is improved. prominent rail
road man said TO me he was confident
that earnings would be enormous with a
harmonious agreement between the big
roads in this section such as is being ar
ranged.
f. Il think the debentures have been roy
ally treated II seems TO me that the
committee has received all it can expect
and that there is no use for it to attempt
~ rraf ~ ~ hi