The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-03-06
The NEW PLAN ABOUT READY.
ITS DETAILS PRESENTED TO CEN
TRIAL DEBENTURE HOLDERS
HERE.

tnnt statements Concerning the
Modified PIan-The Fixed Charges
Much less Than in the Plan Orig
inaIIy Prepared-Three CInsses of
Income Bonds Provided for in the
New scheme.
1t has been understood for some days
that the Thomas Ryan pIaniof reorgs MIA
ton for the Central railroad was being
modified The modification. it is under
stod. is about complete and the plan will
Doe announced in a short time. probably
within the next week or ten days.
Hon. ". y. Harden. who has been In
New York in conference with the parties
interested in the reorganization scheme.
returned to Savannah yesterday. He was
asked last night about his trip and what
Information he had in reference TO the
new plan
~ was requested by telegraph
10 come 70 New York" he said,
Ito confer with certain gen
tlemen with reference to some changes
contemplated in the plan Of reorganization
already prepared by them. That plan
provided for it's own modification, and
matur. thought had convinced those most
interested that the amount OF fixed changes
then formulated, made it quite likely that
that reorganized system would be unable
90 carry its burden, and. in case of de-
fault in the payment Of any portion of
such charges it would be In the power OF
even the junior security holders to fore
close and again break up the system;
which would be fatal to al except the SEN
Tor securities. IL was therefore necessary to
make some changes. and it was desired to
consult all interests and satisfy all Sc
curity holders as far as possible. When
the modified plan was submitted to me
objected to certain portions of 1t as unfair
20 the junior security holders and sug-
gested certain changes. The suggestions
were adopted and the modified plan was
changed accordingly. OF course, the only
changes, which could be made were in the
treatment Of the junior securities. The
secured debt must be paid in full, prin-
cipal and interest and interest upon ac-
crued interest; the unsecured debt must be
paid as fully as possible. and in accordance
with the legal priorities. and, therefore,
the bonds Of the Savannah and Western,
Chattanooga, Rome and Columbus, and
Macon and Northern railroads. guaranteed
by the Central railroad, must be recog-
nized in fun up to the actual value of the
mortgaged roads respectively, and the
deficit should be recognized by the guar
rantOr (the Central railroad) as any other
unsecured debt. This upon the view that
the guaranty Of the Central railroad
is valid and binding, which is yet an
open question With this deficit came the
debentures and then the minority stock
Are you willing to give the figures of
the plan so far as the junior securities
are concerned2"
There is no real reason why I should
not except that the plan in detail will be
very shortly published. and do not care
to anticipate that publication; but win
be very glad to give such figures to any
one holding junior securities, and, at the
same time, explain to him why the figures
are as they are. / care to say now why
that the plan, as it now stands, is, in my
opinion, by far the fairest that has vet
been prepared, and seems entirely feast
Bile. The fixed charges are nearly $1,000
600 less than they now are, and much
smaller than under any plan heretofore
presented. and can with certainty be paid
out Of the current income; and in no event
can the debentures and minority stock be
obliterated. and they are in every re-
spect in better shape than ever
before since reorganization became
necessary The guaranteed bonds
also get all that they are entitled to in
good conscience. OF course, there will be
some dissatisfaction, but If those who
are dissatisfied with their apportionment
can show the reorganizers how they can
be given more without disturbing the le-
bdA BAtbiAAtGo anu IlSulS OF OlneESs / am
satisfied that the reorganizers will be
glad to be able to comply with the wishes
failing in such showing, they should, in
reason, be satisfied with the best possi-
bic. even though it be less than their de-
sires"
Did you in your conference represent
any special interests?'
Il cannot say that I did. was called
on as being the only lawyer on the pro-
tective committee Of debenture holders
and therefore in a position to consider
all sides of the question, so far as the
debentures were concerned. But it was
| fully understood by all that my views
were my personal views only. and that
had neither the disposition nor the power
to represent any one except myself But
l undertook to lay the facts and figures
before that protective committee for it to
take such course as 1t thought proper"
How is 1t expected to carry out the
plan?"
The Mercantile Trust Company. which
! still holds very large amount of the Sc
curities deposited with it under the Hol-
| Inns plan, will be the common agent of
all concerned for the deposit and exchange
of securities"
do you wish to say an thing further?,
"Only that I am assured, and believe.
/ from the circumstances known to me.
! that the plan viii be shortly published.
| and will be carried through as rapidly as
] interests Will
! concur, but the plan is expected to sue
! coed without reference to recalcitrants -
/ The members of the committee of de-
! bentTe holders We're called together yes
/ terday and Judge Harden presented the
/ details of the modified plan for the Cen
| trails reorganization to them They will
report as to whether the plan is accepta-
! BILE to them to-day.
Some of the details of the modified
! plan were picked up last evening. That
part of it which is of special interest to
! the people of Georgia is that which re-
lates to the debentures and minority
stock In the plan as it was originally
prepared and partially published
the fixed charges We're $500
600 and they increased $4,000 until the
amount reached S. 10000 There were
two classes of income bonds, A and b.
1 The debenture holders got bonds and
the minority stockholders b bonds.
Under the modified plan the fixed
/ charges are a little above 81 SOC. O0O and
| they do not increase. There are three
classes of income bonds. They are des-
| ignated as the first preferred. second
preferred, and third preferred The first
ana second preferred are distributed
among the bondholders and the debenture
holders. The third preferred 90 to the