The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-07-15
cENTRAL'S MODIFIED PLAN.
a BETTER SHOWING FOR THE
~ STOCK AND DESBENTUREs.

The savannah and Western offered
Much BETTER Tcrms-The Absolute
a.xed Charges 10 BE Increased by
$4,000. but About $4,000 Is
Taken on the Prospective Charges
On the Income BOnds-Ihe EXten-
sion of Time 10 July 20 VIII he the
Inst the Committee VIII Grant.
The modified form of the Central rail
roads plan of reorganization, which IS
inst announced, and which has been de-
cIared operative by the committee, gives
both the stock and certificates Of in
debtedness considerable more advantage
than they had before the agreement with
the savannah and Western railroad was
finally reached.
Under the modified plan the 100000
4 Der cent. mortgage is done away with
entirely. and q $4,000 per cent mort
eage will be issued in its place, which
win be on the same footing as the CON
soIldaeed mortgage, making the issue Of
consolidated mortgage bonds not more
than a6,50000O at the outside, instead of
Sis.OOO0O. as was at first contemplated.
The first preferred income bonds are re-
duoed from S5.OOO,OOo 10 $4,000 and the
second pre- TERED income bonds are re-
dueed from SS,5OO.OOO to S6,5OO,OOO.
As will be seen, the change from
100000 per cent. mortgage 10 a $500
oO0 per cent. mortgage VIII
Increase the absolute fixed charg-
IS on the property BY 49,
900, making them about Sl,S3o,NO on al me
securities to be Issued TO take up the
present MORTGAGES. Interest charges
amounting to $4,000 are removed from the
first incomes, however, and interest,"
charges of $4,000 from the second IN
comes.
When the increase Of $4,000 in the abso-
lutte fixed charges is considered, now
ever IL win be seen that the deben-
tures which are given second preferred
bonds will be benefited by the removal
of $4,000 net in interest charges, whlcH
R-ouId have come ahead of them under
the old arrangement, while the stock
for which third preferred income bonds
are TO be given IS benefited by the remoVal
from ahead OF them Of 100000 net IN IN
terest charges. This viii make de-
cided change for the better in two classes
of the junior securities.
The notifications i'll the plan have been
due 10 the facts that new offers have been
made to the Savannah and Western and
railroads and that THE Chattanooga, Home
and Columbus and Macon and Northern
railroads have refused 10 accept the terms
offered them, and will not come into the
plan
The Savannah and Western bondhold-
ers have been given So per cent. OF the
consolidated per cent, mortgage bonds,
IS per cent. in first preferred income bonds
and % per cent. in second preferred i'll
come bonds, instead of 30 in per cents.
and 80 in first income bonds, which was
the former offer made them. They have
accepted this last offer, and their prop
erty will remain with the Central rail-
road
The Savannah and Atl antic has been
made quite a liberal offer. as compared
with what was formerly offered. The
latest offer is 90 per cent. in FIRST pre-
ferred and 50 per cent. in second pre-
ferred income bonds. The bondholdefs
of the road have not acted on this modi-
fcation, but 1t is believed that there win
be no doubt about their accepting 1T.
The advertisement with regard to the
deposits Of securities with the Mercantile
Trust Company will be hanged to-day,
and Judge William d. Har den, who repre-
sents the reorganization committee here,
has been requested 10 give this notice.
1t is announced that this lis positively the
last extension of time that will be grant
ed, and the committee win give notice
that 1t VIII reserve the IiBuL aILer july
25 to which date the time has
been extended, to charge a deposit fee or
10 reject them altogether. The time will
be extended to July %, and all holders of
securities are expected to have them in
the hands of the Mercantile Trust Com
pany within that time if they expect to
enter the plan. Those holding Savannah
and Western bonds, however, viii deposit
them with the Borg protective committee
in New York, this arrangement being
made in order TO keep all Of the Savan-
nah and Western bonds together.
Mr. A. r. Lawton, Jr, win 90 to New
York to-day for the purpose of consulting
with the attorneys and arranging for a
speedy application to the courts and the
securing of a decree of stSle. 1t is expect
ed that Mr.. Henry Crawford, the at
torney for the committee, and Mr.. Thomas
T. Ryan, who has been working on the
plan with Gen. Thomas, will be in Savan-
nah within the next week or ten days
When they come 1t is likely that some ar
arrangement will be made for the deposit.
ing of small holdings of stock and deben-
lures without the expense of orders OF
court and court costs