The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-06-06
CENTRAL'S NEW SECURITIES.
THE PLAN DRAWN Up BY MEsSRs.
RYAN AND THOMAS.

Mortgages, $4,000, GOO First Prefer
cncc Income Bonds, 3S,5OO,OOO See
ond Incomes, Sf,OOO.O0O Third In
come, and S5,OOO,OOO Common
stock.
New York, June 5.-Thomas +. Ryan
ard Samuel Thomas formally announced
this afternoon the plan which they have
drawn up for the purchase Of the prop
critics OF the Central Railroad and Bank
ms Company of Georgia.
The plan contomplates the sale to n
new company to be called the Central Of
Georgia Railroad Company of all the
properties of the present corporation by
the purchasers under foreclosure of their
tripartite or consolidated mortgage, or
both. and oe the securities pledged for
the floating debt.
The company viii issue the following
securities:
CA) SZOOO,oOO first mortgage nfty-year .
per cent. gold bonds. which shall be a
FIRST lien on the main line from Atlanta
to Savannah, including the AIiledgcvile
branch, and upon the equipment and the
equity in the steamship properties.
O5) s1S,OoOOOO consolidated 5O-year gold
bonds, which shall be . second lien on
the main line and a first lien on the Mont
gomcry and Eufaula railway, and sec
oud lien on the Mobile and Girard rail-
way This issue may be increased 81, 600, e.
600 at the rate of not more than $500, GOO
a year for bettermeats. 1t may be in
creased to S2O0OO,OOo if the above men
toned S1OOOOOO first mortgage bonds are
not issued.
CO. S4,OOO,OOO 5O-year. per cent general
mortgage gold bonds, which shall be
first lien on the Savannah and Western
and Macon and Northern, and may be
increased 81, 900, 900 a the rate of not more
than S200OOO a year, for betterments.
OD) S5,0O0,000 50-year first preference
income bonds, which shall be lien on
tho Savannah and Western, Chattanooga,
Rorae and Columbus, Macon and North
ern, and Savannah and Atlantic railroads,
and third lien on the main line and
second lien on the lease holds, securi-
ties and equities of properties acquired
BY the new company. These bonds are
non-cumuative, and are 10 bear interest
lot exceeding per cent in any one year.
)ayabie out Of the net earnings.
(E) SS,510,000 second preference income
bonds, similar to the f1rsts, except that
they are junior in lien and receive interest
in any year only after the hrsts shall have
received their fun per cent.
C') Sl,O0O000 third preference incomes
similar to the above. except in point of lien
and in that they receive interest only after
per cent. has been paid each on the first
and second incomes.
(G.) $5.000,000 common stock.
In the distribution of the new securities
an opportunity will be given TO the Mont
gomery and Eufaula first mortgage bond
holders to exchange their bonds al par
for the new consolidated bonds and re-
soive the past due interest thereon in cash.
For the Savannah and Western first
mortgage bonds and unpaid coupons, the
holders will receive $500 in new general
mortgage bonds, $3.50 in first preference in
come bonds and $3.50 in second preference
income bonds. In other words, 70 per cent
OF their principal viii be offered to these
bondholders in securities which are Sc
cured on the property on which their bonds
were issued.
The first mortgage bondholders of the
Chattanooga, Rome and Columbus will get
$500 in first preference income bonds and
700 in second preference income bonds for
each 81 600 bonds.
Macon and Northern first mortgage
bondholders will receive $3.50 in new gem
eral mortgage bonds, $500 in first prefer
ence income bonds and $3.50 in second pre-
ference income bonds.
Columbus and Rome first mortgage
bonds will receive $500 in first preference
and $500 in second preference income bonds.
Savannah and Atlantic first mortgage
bonds will receive par in a second prefer
ence income bonds.
For the certificates of indebtedness,
par in second preference income bonds
will be given
Third preference income bonds at par
will be given for the 1880 shares Of !he
nrorfo (tar1fy. NJ ST.
hands of the public.
The purchasers under the foreclosure sale
agree to free the property of the Savan-
rah and Western and the Chattanooga,
Rome and Columbus from amy claims of
indebtedness to the Georgia Central and
also to pay the underlying bonds issued
by the Columbus and Western Railroad
Company of SS00,o90 and the Rome ana
Carrollton bonds of $4,000. They will
also pay all expenses of the reorganiza-
uon, all the secured floating debt OF the
Georgia Central tripartite bonds with in
terest and the ascertained bonds of the
receiverships
The Mercantile Trust Company of New
York will act as the common agent tor
the deposit and exchange Of securities IN
carrying out the plan.
The plan has been underwritten by a
strong syndicate. It Is approved by the
holders OF a majority of the capital stock
Of the company, by the committee of the
holders OF certificates of Indebtedness, by
lhe underwriters of the proposed first
mortgage bonds of the new company to be
used in taking up the present tripartite
ponds and by the committee representing
the first mortgage bondholders of the Mo-
oile and Girard Railroad Company.
Under the plan the fixed charges will be
reduced to $l,Sl5150 per year and will not
Increase, except from the small additional
issue provided for bctterments, if such is
sue should be made.
Judge w. D. Harden of Savannah. who
represents the holders of certificates OF
Indebtedness ana is chairman of that COM
mlttee is now in New York. and says: Il
nave no doubt but that the plan will meet
with the approval of every one who has
not an AK to grind in addition to the mere
redemption of the property. have talked
very extensively with holders of the pei
cent. certificates OF Indebtedness, the mi
H9riiy STOCKHOLDERS and 4 good many hpl-
uerS of the Savannah and Western bonds,
ana with the exception Of such holders OF
the latter as are bound by their agreement
raIfe 7