The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-05-20
COMING INTO SAVANNAH.
Arrangements Made in the sans Re-
organization Plan 20 Extend It
Here.


Here.
With the publication Of the reorganiza-
tion plan for the Savannah. Americas
and Montgomery railroad. the talk about
the building OF a seventy-five miles extern
sion into this city. from Lyons. the pres
ent eastern extremity Of the line, has been
resumed, and IL is now stated with some
authority that The new company will pro-
coed at once to make arrangements for
the work
The main line OF the road. from Mont
gomcry, Ala, to Lyons, is 265 miles long,
and with the proposed extension the com
pany would have $40 miles. ArrEng cments
for making this extension arc being made
in the new plan OF reorganization, and the
securities are being issued on this basis.
The bonds TO be issued under the plan viii
cover this proposed y mile extension, in
GLIDING the road bed. all rolling stock and
terminals Of the entire line.
The securities 10 be issued are first 81
10000 first preference per cent. 80 year
gold bonds, or 5000 per mile on $40 miles
main lire completed road. After these
viii come S3060.O00 first consolidated mort
gage 5 per cent. 30 year gold bonds, the
issue 10 be limited to $1,000 per mile of
road. but $1,000 additional per mile viii be
issued. TO be held by the trustee Tor the
y
hrst mortgage preference fves at 1O5. with
accrued interest. Any deficiency in the
payment Of interest on the consolidated
mortgage bonds Is authorized to be met
in the first three or FIVE years Of their life
by ten-ycar per cent certificates Of in
dcbtedncss. The issue OF preferred G per
cent stock is TO be limited to $4,000 per
mile. or SO. 10000. and that Of common stock
to $4,000 per mile, or a total Of $500, 900.
An equitable disposition of these securities
has been arranged by the committee.
The fixed charges on the property, under
this plan. are reduced to S255.000, which
is go per month and $3.50 per mile per
annum. The plan, as will be seen, makes
provision for the extension into Savan-
nah and The estimated cost of this inn
provement Is 100000. or something over
50. 900 per mile. With regard to this ex-
tension. the circular letter giving the
statement Of the reorganization plan says:
"In carrying through the reorganization
of the Savannah, Americas and MOntgOm-
cry railway. If II should be found best
TO acquire the hfty-eight miles OF the Sa-
vannah and Western railway between Ly-
ons and Meldrim by perpetual lease or by
traffic contract instead of by purchasing
it outright or by paralleling ii, the Savan-
nah, Americas and Montgomery railway
would have to raise 100000 less. and the
syndicate or old bondholders in that event
would be called upon to pay only 81 Us, 900,
instead Of sl,67500O. The mileage of the
new system would then be about 2S5 miles
in stead of $40 miles. OF course, there
would be "A proportionately smaller amount
of new securities issued in consequence
of the reduced mileage. but these dir
erences would not materially affect the
amount of new securities which IL Is pro-
posed to give to the holders of the present
Savannah, Americas and Montgomery
railway first mortgage bonds, or the
bonus which It is proposed to give to the
parties purchasing the new preference
mortgage bonds at par. Even under this
arrangement, there would me ample funds
left in the treasury for improvements,
betterments and future needs"