The Savannah morning news., 1902-05-13
TERMS OF The DEAL
HOW THE ATLANTIC COAST LINE
GETS THE PLANT SYSTEM.
STOCK IS GIVEN FOR STOCK.
HOLDERS OF s., F. a w. STOCK GET
STOCK IN CONSOLIDATION.


900 Shares of Preferred and Com
mon Stocks, +. - w. Preferred
stock viii Be Exchanged for so
Per Cent. of Their Par Value in
Common stock of the Consolidated
COmpany-S., f. a w. Common
viii Get 20 Per Cent. of Common.
$, F. & w. and A. c. L. StOckhOld-
ers Ratified the AEreement-Plant
System Will Probably Be Operated
independently of Coast Line.
The agreement for the merger Of the
Plant System of Railways with the At
lantic Coast Line Railway Company
was ratified yesterday by meetings of
the stockholders of the Savannah, Flor
ida and Western Railway in Savannah
and of the Atlantic Coast Line in Rich
mond. The merger will actually take
place on July /.
President r. G. Erwin and Secretary
r. B. Smith of the Plant System at
tended the Savannah meeting, which
was held at 10 o'clock at the general
Offices of the company. The agreement
between the boards of directors of the
two companies was submitted. 1t re-
ceived the approval of the stockholders
and was ratified.
The Agreement.
The articles of agreement, consolida-
ton and merger of the Atlantic Coast
Line Railroad Company and the Sa-
vannah, Florida and Western Railway
Company bears the date of April 10,
1902. After setting forth the various
TO- H. -
by the Atlantic Coast Line, and the
various lines aggregating 1913 miles,
owned by the Savannah, Florida and
Western, to be included in the merger,
and recitng that the laws of the sew
eral states through which the lines
run do not preclude their consolida-
ton that they are not parallel nor
competing lines. but form a continu-
GUS railroad with one another, that the
consolidation would promote the inter-
ests of the public by increasing tacili-
ties, that the public policy of the sew
eral states encourage the merger; that
the directors of the two companies
have decided to enter into it, the agree
ment leads up to the mode of carrying
into effect the consolidation.
To BE the A. {. l..
The union viii be into the Atlantic
Coast Line Railroad Company the
agreement shows, which will continue
as the name of the consolidated COM
pany. Richmond will continue to be
the principal Office or place of BUSH
ness OF the company. There will be
twelve directors of the consolidated
company. and the officers win be
president, three or more vice presi-
dents, a secretary, one or more assist
ant secretaries. a treasurer and one or
more assistant treasurers, the office of
secretary and treasurer being filled by
the same or different persons, as the
board OF directors may deem best.
The present directors and officers of
the Coast Line Company will be the
first directors and officers of the
consolidated company. They are as
follows: Michael jenkins, Baltimore,
Md; Waldo Newcomer, Baltimore Md;
FREDERICK W. Scott, Richmond; Daniel
w. Lassiter, Petersburg; George How
ard, Tarboro. n. c.; Edwin b. Borden.
Goldsboro, n. c.; Henry Walters, Bal
timore: Warren @. Elliott, Whining
ton; John w. Norwood Wilmington
n. c.; Henry b. Short, Lake Wacca-
NAV, S. c., and James j. Lucas, So
ciety Hill S. (.
COnst Lines Officers.
The officers are Warren G. Elliott,
president; Henry Walters, first vice
president; Alexander Hamilton, Pc
Gadsden, Charleston, third vice presi-
dent; James +. Post, Wilmington, sec
rotary and treasury. on June 16 the
election for new boards is to be held at
Richmond.
The consolidated company will take
the property of each company and be-
come responsible for all debts and liza
bilties. The capital stock of the con-
solidated company will be 100000
shares of par value of 500. of which
i1SS,000 will be preferred, the dividends
not to exceed 5- per cent. non cumula-
tive, and 231 900 common stock.
The consolidated company may in
crease the stock not exceeding, 81, 000,-
600. Present holders of the A. c. l..
will retain shares of preferred and
common stock as they now outstand
as preferred and common stock of the
consolidated company. Holders of the
preferred stock of the Savannah,
Florida and Western win receive 80
per cent. of the par value of their re-
spective holdings in the common stock
of the consolidated company at par.
The holders of the common stock of
the Savannah, Florida and Western
will receive % per cent of the par
value of their respective holdings in
the common stock of the consolidated
company at par.
Any holders of the preferred or COM
mon stock of the Savannah, Florida
and Western who may refuse to con-
vert it on these terms will be paid for
1t at an agreed valuation in 4 per cent.
mortgage bonds of the consolidated
company or in cash, or if no agree
ment can be reached, at such price as
the law may determine.
The agreement is signed by the
president and the boards Of directors
of the Atlantic Coast Line Railway
Company and the Savannah, Florida
and Western Railway Company.
MIR. Erwin's Statement.
President Erwin was seen after the
meeting and asked about the report
that he would be made president of the
consolidated company. He was non
committal, in a measure, neither say
be the president. Il can only say what
said some time ago." said Mr. Erwin,
land that is that l purpose taking a
rest for time after the consolidation
has been physically effected. which will
be on July l During the summer l
will be looking after matters in con-
nection with the consolidation and the
winding up of the Savannah, Florida
and Westerns affairs. and will also find
opportunity for relaxation from bust
ness. No, ] do not expect to take a
trip to Europe"
Mr.. Erwin said that nothing definite
had been decided about the physical
operation of the Plant System after
July 1. nor had he heard any discus
sion as TO who the officers of the COM
pany will be. 1t seemed to be his idea