The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-02-24
THE PLAN NOT ABANDONED.
THE PROPOSED FIXED CHARGES
on THE CENTRAL To BE Ma
TERIALLY REDUCED.

Security Holders ThOught the Pro-
posed Fixed Charges on the Prop
erty Too High in View OF the Gen
eral Depression, and They VIII he
Reduced TO. About 81 100000, at
which They viii Remain station
airy Instead of AdVancing-The
Plan Has a strong Backing and
the Property IL Believed Fully
Able to Earn That Amount.
The plan OF reorganization Of the Cen
tral railroad properties generally known
as the Thomas and Ryan plan, it seems
has not been abandoned, but efforts are
being made TO modify it so that it will
be entirely acceptable to those who will
underwrite the bonds to be issued under
the new arrangement.
Receiver Il. NJ. Conner returned yester-
day morning from New York, where he
has been for the last week studying
the situation. AIr. A. r. Lawton, Jr.,
counsel for the receivers, is still in New
York city. Mr.. Conner takes a very cheer
ful view Of the situation and believes
that everything viii work out satlsfac-
torily to the security holders within
short time.
The plan Of reorganization as outlined
some time ago." Receiver Conner said,
has not been abandoned, but 1t will be
modified. The details of the modification
have not been worked out as yet, but
the general idea is instead OF having
the fixed charges advance, to have them
remain stationary, and they Will be re-
duced TO about 81 10000 per annuJa. The
distribution of the securities 10 be issued
viii be fair. just and equitable as among
all the security holders concerned.
1t has been thought by the people in
terested in the property all around that
in view of the general depression through
out the country, the fixed charges as con-
templated in the plan as it was first out
lined, would be too high and more than
would be prudent to put upon the prop
erty. so they viii be reduced to about
the amount have named"
The plan under the notifications which
It l. proposed to make viii, 1t is said,
receive all the backing financial and
otherwise that is necessary. The high
standing financial Institutions which it
is understood viii be at the back Of II
ars the Mutual Life, Equitable Life,
New York Life Insurance companies of
New York, the New York Guaranty and
Indemnity Co., the Mercantile Trust Co.
and the floating debt holders generally.
1t is understood that j. p. Morgan &
Co. viii not put any obstacles in the way
of the plan.
It is pretty well assured that the proper
ty will be reorganized this year. 1t will
take some little time, of course, to bring
about an agreement satisfactory to all
the interests, but it is be-
Ieved the notifications in the
plan contemplated can be effected within
the next few months at least. after which
the proper legal steps can be taken to
bring about the sale and reorganization Of
the road.
The fixed charges. under the plan as it
has been outlined. would have started
at S1,900000, and they were to have in
creased at the rate Of $4,000 year for
five years, reaching g. $50, 900. at which fig
ure they were to have remained had that
plan gone through. This, ii was believed,
as Mr.. Conner stated, was somewhat too
heavy for the property to bear in view
Of the general depression existing in bus
mess affairs throughout the country
Some of those who are backing the plan
were DESTROYS that the basis should be an
absolutely certain one, in so far as it is
possible to make II so, and that there
should be no doubt about the payment OF
the fixed charges. 1t Is believed with a
reduction of the proposed fixed charges
TO the figure named, about sl,SOO,O00, the
property will experience no difficulties
whatever in promptly meeting them.
So far as the Southwestern and Augusta
and Savannah railroads are concerned, no
| changes whatever in the allowances to
| them under the plan as formerly outlined
/ are contemplated, and they will not be
! included in the notifications that are TO
! be made. Neither are any changes con-
| templated in the manner in which the
road is to be managed and operated, nor
with its relations to the Southern. the
/ holder of the majority stock, which have
/ already been stated in the outline of the
! plan given.