The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-02-28
MEMPHIS AND CHARLESTON.
Its Purchnse BY the Southern and Important
Additions TO That 81 stem.

is purchase hy the Southern and Important
Additions TO That sIstcn.
The Memphis and Charleston Railroad, which
has just been purchased by the Southern Rail-
way Company, is $50 miles long. extending
from Memphis to Chattanooga, 80 miles.
with twenty miles of branch lines. OF the
main line thirty.eight miles. from Chattanooga
to Stevenson. Ala, are operated under a traffic
agreement with the Nashville, Chattanooga and
st. Louis Railway Company. The Memphis
and Charleston was q portion of the old East
Tennessee, Virginia and Georgia system, and
now follows that property and becomes a part
OF the Southern Railway system, as was origi-
nally intended under the reorganization plan of
the Richmond midwest Point Terminal Railway
and Warehouse Company. Its acquisition by the
Southern gives to that company access to one
Of the most important gateways on the Missis-
sippi River, and q direct line of its own from
there to its ocean termini at Brunswick and
Norfolk, as well as to Washington. The direct
result will be increased revenue and important
econ omies of operation both for the Memphis
and Charleston and for the Southern Railway
Under the plan Of reorganization of the Mem.
phis and Charleston Railroad Company pro-
vision Is made for the immediate retirement or
the company. The. Southern Railway Com
and second divisional mortgages. The bonds to
be issued under the first mortgage will be known
as the Memphis division first mortgage lOOyear
gold bonds, and their Issue Is limited to SO, 0OO,.
DOC: U I this amount 50, Os3. 900 will be issued Inn
medintely for the retirement or acquisition OF all
Memphis and Charleston bonds now outstanding,
$l,417,0OO will be reserved for new construc.
ton and additional equipment. and 81. 500. 1000
f0r the construction OF q railroad between
Chattanooga, and Stevenson. Tenn. 1t is pro.
vided thar the ISSUE Of the bonds reserved for
new construction and equipment, aside from
the 81. 500. 900 named above. shall not exceed
100000 In any calendar year. These bonds
hear 4 per cent. interest until July !, 1901,
then Az per cent. to July ]. 1906. and 5 per
cent. thereafter. The second mortgage bonds
are the Memphis Division second mortgage 100
year 5 per cent. gold bonds, and the issue Is
limited to 81, 800. 900. OF these 81 500, 600 are
to be issued Immediately to the Southern Rail-
way Company TO reimburse 1t for expenditures
made in connection. with the purchase OF the
construction, additional equipment, and for the
purchase Of additional property, not more than
100000 to be so Issued In any one year.
The annual interest charges upon the old
bonds OF the company were $376,6S0. The an
nual interest charges upon the completion OF
the reorganization will be 1919. 800. The
earnings of the Memphis and Charleston Rail.
road under the receivership for the fiscal year
ended June 30 last were gross 81 $3.50, COL. and
net $335,O96. DeductinR from the last named
sum the amOint OF interest charges after re-
9rganization, a surplu, Of $58,776 is shown.
For the six months ended Dec. 81 last the gross
earnings increased 1874, 1907 over those OF the
same period of the previous year. and the net
earnings increased $50. 76s. Tho gross earn.
ings for January show an increase OF $55 OLE
over those OF January o. year ago,