The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-03-27
TO REoRGANIzE AT ONCE:
HOW THE ELECTRIC RAILWAY
PROPOSES To ARRANGE ITS
DEBT.

DEBT.
The Brush Electric Light stock Now
in the Treasury Released by Judge
Speer, One Half 10 BE Divided Be
tween the Old Electric Railway
BondhoIders and the Other Half
TO BE Used in DefrayinE the Debt.
It VIII he Pledged for Loans and
sold on Gradually 50 as to Not
Break the Marketable Exchange
of Bonds 10 Begin AT Once.
Receivers John R. Young and ]. S. Col
Inns. ana Mr.. W. G. Charlton
Of counsel for the Electric rail-
way. returned yesterday morn
ing from Macon. where they procured
an order from Judge speer permitting the
Electric Railway Company to carry out
its plan Of reorganization as submitted
20 him and TO make the necessary con-
tracts and agreements.
AS stated in yesterdays Morning News
an order was issued by Judge speer en-
March Il. requiring the receivers of the
Electric railway to make answer show
ing cause why the prayer of II. A. Peveay
for a reorganization and rehabilitation of
the property should not be granted. The
receivers made their answers to the court
in Macon Monday. Their answers agree
with the prayer OF the petitioner and
show why reorganization should be accom-
plished.
The plan OF reorganization Is the same IS
that announced sometime ago. The mort
gage Indebtedness Of the two properties.
the Electric railway and the Savannah
Street railway. is to be consolidated and
the floating Indebtedness is to be pro-
vided for. partly in cash and partly by
securities. The present bonded Indebted
ness is S25O,OOQ of Electric railway s per
cents, $4,000 Of Savannah Street railway
per cents, and 100000 Of consolidated
mortgage bonds at per cent. The latter
were issued at the time of the consoli-
dalton and have never received any in
terest. The new bonded indebtedness will
be 100000 at per cent. which will make
the fixed charges of the company $4,000.
The chief advantage Of the plan of re-
organization is that it releases the $685.
000 of Brush electric light stock and makes
II available for the purposes of the reor-
ganization and for meeting the liabilities
of the company. Judge Speer's order re-
leases this stock as requested. By the
plan of reorganization the holders of the
$3.50 900 Of original Electric railway bonds
get half of this stock, the stock having
been one of the assets of the company
before the consolidation with the Savan-
nah street railway. The other s62 500 of
Brush stock will be used to raise money
with which to meet the floating debt of
the company.
The petition of the Electric Railway
Company to Judge Speer says: 1T is pro-
posed by said plan to provide for the
general Indebtedness of the company,
partly by making settlement in cash,
partly by paying or securing with the
proposed new bonds and partly by payl
ing and securing with the Brush stock
and by using the net earnings of the COM
pany over and above its operating ex-
penses during the current year, during
which time the plan relieves the COM
pany of all interest charges for this pur-
pose"
Part OF the indebtedness to be paid In
cash consists of notes aggregating $13, 227,
on which individual accommodation IN
dorsements were made for the benefit of
the company. This is stated as a prefer
entail debt. as the money raised upon
these Endorsements. was used by the com
pany in January, 1894, for the payment
of interest coupons upon its bonds.
Receiver Young's answer states that
while the bonded Indebtedness and fixed
charges are greater than the earnings
of the property warrant at this time they
are justified in part by the fact that the
interest of one year is written off from the
lien upon the property, thereby enabling
the company to use its net earnings for
that period in betterments or in liquidation
of debts which otherwise might constitute
aFa.n Ia 4 HNuW 10
and in part by the possibility of such an
increase in earnings during the year as
will enable the company to meet Its fixed
charges. In his answer Receiver Young
requests that the court in granting the
prayer of the petitioners will require
the company to turn over to the receivers
out of the proceeds from the Brush stock
the sum of 81, 1876 TO be applied to the debts
and expenses OF the receivership, taxes
due and payable and fees of complain
ants counsel. This request Is granted in
the order of the court
Attached to the receivers answer is
schedule of the indebtedness of the Elec-
trio Railway Company with explanatory
notes. The schedule is as follows:
Creditors for whom present provision
is made:
A. Claims, etc, proposed to be
paid in cash at once, expenses
of receivership suit. court costs,
receivers debts and expenses
and outstanding receivers GER
tificates ACKNOWLEDGEMENTS. 5.S55 90
Taxes due and payable. 1000 90
Sundry creditors and claims.
judgment liens. interest notes,
etc ...............,............ ls,S0S 90
s26, ASS 90
b. Creditors who agree to take
bonds in payment. S,7SS II
c. Creditors who grant extension