The times., 1897-12-27
SOUTHERN TO ABSORB It
Memphis aud Charleston Will
BE Added TO the System.
RUMOR OF DEAL CONFIRMED
Direct Line From Washington to
Memphis, Tenn ni-CeTd.tions which
Tend TO Bring About the New
ation-irlpurtant Interests
CoIssoIidated-Gold Bonds.

An Official of the Southern Railway
Company " as seen by ii Times representa-
tive last night ia reference TO the report
that tue Memphis and Charleston Railway
isto come under the control of the southern,
and lie confilmel the report. he saiu
tiat the iass4ssfel 4yould be either by public
sale or a lease for long term OF wears.
The Southern has for some time past
operated its cars over the line, but It's
tenantCN has, ib-is undefs TODD, beeh
tbrastaned with notice TO terminate, ow-
ing to the fact that committee, headeu
NV Mr.. Si,non Borg OF New York, which,
it was reported, was likely TO secure
majority of the bonds Of the Memphis and
Cbarleston WAS -lle.ng urged 10 form a
roalition with another railway COMPANY,
which is supposed to be in a certain
degree antag onistic to the Southern
Now. ioweve,, comes the announcement
anloDc those interested that :he way has
been cleared for "A consolidation OF the
Borg interests with those of Morgan
Co. aud the passing of the Memphis anu
Charleston into the ownership OF the
Southern.
The ultimate result OF the disposition OF
the Men. nhis and Charleston road 20 The
Southern Railway Company will probably
be the realization of the plans oil those
who secured the charter OF the former
road, n,oie tlsan fifty years ago, which is
the construction of a railway tine hetWteh
Memphis Tenn, and Charleston, - u
the union of the Mississippi RIVER wl'h
the Atlantic ocean, at one of the finest
seap.tts on the Southern coast OF The
United States
The immediate effect OF the acquir ein mt
of the Memphis and Charleston VIII De 10
bring the mileage Of the Southern up 10
almost G.cuo miles. In The near tutGie
many tho usai ds, perhaps several ihiillohS'
of dollars will be expended in putting the
roadbec and equipment INTO perfect .ondi
tion.
The main line of the Memphis anu
Charleston extends from Memphis. Tenn,
10 Stevenson. Ala. 2T2 miles, anu IL has
branches amounting 10 frty-eighJ Hdes, a
total of $50 miles. Its traius haNe
entrance into and terminal Facilities IN
Chattanooga under an arrangement Win
the Nashville. ChattanoOta aud St Louis
Railway Company. whose tracks are nseG
un6pr a contract at a rental OF So.Dno per
month.
The Memphis ana Charleston Railroad
Company was chartered February :. sio'
and the road was opened July 4. l53S' Ia
July. S92. tle road went into the :iandSoI
receivers The company was loriIeFlS
controlled by the East Tennessee, virginia
ana Georgia Railroad Company, WHICH Is
now part OF the Southern Railway Com
pauy, but was excluded from the modified
pIaE OF Reorganization OF the Hichmond
..lsI "a t.- E,sFt-
ruary 90. 1894.
Under date of March ., S96, a plan Of
reorganization prepared by a comditee
representing the holdings of the .everal
classes of Z per cent bonds was promul-
gated. and has since been assen.ed To 10y
practically all of the several classes oi :
per &C mt bonds.
This plan provides for IN issue OF So
100000 first mort gage 1Oo-yelr gold
bonds to lear interest at per cent Per
anpun. for the five years from July !.
1896, to July /, 1901; 4 IL per cent Tor
the next five years, Al nd per sent 'feie-
after. Also Sc. ooG. goo non-CUmulativc
5per cent ircone bonds lor preferred stock,
a ma be decided and an fsslle of com
mon stock TO an amount not specified IN
the pIan The Tennessee iiea, iirst
mortgage and second mortgage bonds
with coupons 10 July /, 1896 atta"hed
viii receive per share SS 90 in new first
mortgage bonds nd $1,000 in income
bonds, while general mortgage bonds are
offered in exchange for every $1,000
new income bonds, 70 the amount oi
$1,000, hei;lg S1.2OO for the principal
and $500 lur overdue interest 10 July /,
1896.
These changes, if effected, will con
sumo 50, Os3, 200 OF the new first mort |
gage bonds a nd 81, O0S, ,Ooo income bonds, |
leaving a balance of l,3l6,0 900 uf the |
former, which IL is proposed 70 apply 10 |
the betterment OF the property, ahd S5SS, |
200 income bonds. which are Di:sred 70
stockholders paying a n assessment oi -
net share, at the rate of 81 o FOR every
share OF their holdings.
The plan also provides for leasing the
property for ninet y-nine years to the South |
ern Railway Company at rental equal |
to the fixed charges Of the company. and
for delivering to the Southern Railway |
Company the entire common stock Of the |
new company in consideration VI the |
guarantee and release of all claims by |
the Southern Railway Company against !
the Memphis and Charleston Railway Com |
pany.
In pursuance OF this plan, foreclosure |
proceedings were begun in July. 1896, and |
February Il. 1897, a decree was issued |
ordering the sale of the road within /
thirty Gays after Match i, 1897. An ap- |
peal from this decision was granted, and |
the final order of sale was not made |
until recently.
The Southern Railway Company was |
chartered February 20 1894, and the com |
,z.g1J Jt,r,a -
latter date the Richmond and DanTine |
Railroad was sold under foreclosure. and |
by the purchaser turned over to this com. |
pany. The operation OF the leased and |
controlled lines OF the Richmond and Lam |
Vile was assumed by this Company at |
the same time. The other lines Wefc ac- |
qnired at different times and under vas.uus /
Conditions
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