Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-06-08
GEORGIA CENTRAL PLAN.
Launched with the hacking Oh
strong Syndicate.
CNew York Sun)

Messrs Thomas +. Ryan ana Samuel
Thomas made an official announcement
Yesterday of their plan for the reorsanl-
cation OF the Central Railroad ana BANK
ing Company OF Georgia.
THE details of the plan were printed in
detail in the Sun some weeks ago. III
proyides for the sale Of the properties
under foreclosure Of the consolidated or
trinartIte mortgages on both and the sale
NJ the securities pledged for the floating
debt. The purchasers will organize new
company. 10 be called the Central Rail-
way Company Of Georgia.
The new company will be authorized 10
issue 100000 first mortgage 5O-year D
ner cent. gold bonds, 100000 consoli-
dated mortgage 50-year per cent gold
bonds. 100000 50-year 4 per cent. general
mortgage gold bonds, 100000 first per-
ference income bonds, $4,000 second pre-
ference income bonds, 100000 third pre-
ference income bonds, and S,OcO,O0V OF
common stock.
The ocean steamship first mortgage
bonds. amounting TO 100000, and the col
lateral trust mortgage OF HSSVVo VIII
remain undsturbed. The Mobile ana Iii
rard mortgage is TO be forecloseu. anu
the bonds exchanged at par into per
cent. bonds under a new mortgage LOT
81. 900 900.
OF the securities Of the new company
the Savannah and Western first mortgage
bondholders are TO receive for each N,Vo
bond 300 In new general mortgage bonds,
800 in new first preference income ana
500 in second preference income bonds.
The Chattanooga. Rome. and Columbus
first mortgage bondholders are 10 re-
ceive 500 in first preference incomes ana
$500 in second preference incomes FOR each
81 900 bond. The Macon and Northern
a., COZ
gage bonds, 500 In first preference in
comes, and $3.50 In second preference IN
comes.
Columbus and Rome first mortgage
bonds are 10 receive 500 in first prefer
ence incomes and 500 In second prefer
ence incomes Savannah and Atlantic
first mortgage bonds are to be exchanged
OF par for second preference income bonds
and holders of debentures known
as certificates of indebtedness will re-
ceive par in the second preference In
comes. For the $500 shares of COM
mon stock in the hands Of the public
third preference insome bonds will be
given at par.
The purchasers under the foreclosure
sale will agree To free the property OF the
Savannah and Western and the Chatts-
nooga, Rome and Columbus from any
claims of Indebtedness to the Georgia
Central, and also TO pay the underlying
bonds issued by the Columbus and West
ern Railroad Company Of $4,000 and the
Rome and Carrollton bonds of $4,000.
They will also pay all the expenses OF
the reorganization. all of the secured
floating debt of the Georgia Central tri-
partite bonds. with interest, and the as
certained debts Of the receiverships.
The Mercantile Trust Company, of New
York, will act as the common agent for
the deposit and exchange of securities in
carrying out the plan.
The plan has been underwritten by
strong syndicate. and its success Is
thereby considered assured. II is fur
thermore approved by the holders of a
majority Of the capital stock of the COM
pany, by the committee Of the
holders OF certificates Of Indebtedness. by
the underwater OF the proposed first
mortgage bonds OF the new company 10
be used in taking up the present tripartite
bonds. and by the committee represent
ing the first mortgage bondholders of the
Mobile and Girard Railroad Company.
Under the plan the fixed charges will
be reduced TO N.g5lJ0 a year, and will
not increase except from the small addi-
tional issue provided for betterments, IL
such issue should be made
Judge W. ID. Harden, OF Savannah, who
represents the holders Of certificates OF
Indebtedness and is chairman OF that
committee, Is now in New York, and
says: II have no doubt but that the plan
will meet with the appreciation OF every
one who has not an axe TO grind IN
addition TO the mere redemption OF the
property / have talked very extensively
with holders of the 6 per cent. certificates
OF Indebtedness. the minority stockhold-
ers, and with a good many holders OF
< axraF raah a,a1
the exception of such holders of the lat
ter as are bound by their agreement with
the pooling syndicate. | have heard no
objection. but IL is universally agreed to
be the fairest plan. What / have said
applies also 10 holders or Southwestern
stock and holders Of large amounts OF
Augusta and Savannah stock"
General Sam Thomas said: "The plan
has received the long and careful con-
sideeton OF the receivers. and of the
largest security holders and it is un-
doubtedly fair and just TO all classes OF
stocks and bonds. The more IL is studied
the more II will commend itself. II will
without doubt be accepted, and II will
place the old Georgia Central on a new
footing, creditable and financially sound.
1t must be expected that some parties
will be disappointed. but their croaking
Will not prevent the plan from being
accepted"
Mr.. Thomas F. Ryan said: I'VE expect
no opposition from the security holders
OF the Georgia Central, who have only
the interest OF the property 10 serve.
There may be some from parties VINO
hope TO obtain personal gain other than
that 10 which they are entitled as Sc
curity-hoders."
member of the Richmond Terminal
Reorganization Committee said that the
plan met with the cordial approval OF that
committee and OF the Southern Railway
Company. This means, of course, the
plan is also practically endorsed and Will
be supported by Messrs. J. p. Morgan *
Co A member OF that firm said that the
plan appealed TO them because OF the
reduction Of the fixed charges TO an
amount that the recognized system can
PROFESSIONALLY earn.