Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-06-18
MOVE TO DISMISS
S. A. L. FORECLOSURE

IL Is probable that a move will be
made here shortly TO have petition for
foreclosure dismissed which is on file in
the United States court against the Sea-
board Air Line railway.
Randolph & Brown. lawyers for the
Seaboard. have not received Information
OF such a move. and are proceeding now
in a direction that would end In fore
closure for the road. They would not
be surprised 10 learn that the foreclosure
petition was TO be dismissed. .-s.-- ..
According TO information from New
York. a committee from the Seaboard
which has been at work for the purpose
OF recognizing the road. has unofhcially
announced that this REORGANIZATION can
be effected without foreclosure.
II Is here and in Virginia that receiver
ship proceedings were begun against the
Seaboard. and that foreclosure was pc
titioned. II would be here that the pc
tition would be made TO have the fore
closure petition set aside.
The committee on reorganization Is SAID
to have agreed on the following impor-
tant points: ---.
The present first mortgage TO secure
ss5.OO00 900, per cent bonds. Of which sl2,-
1900 are outstanding, remains undis-
turbed.
No assessment on common or preferred
shares.
The sale OF $4,000, OOO per cent income
bonds OF a total issue of S25.O0O,00O at 20,
the proceeds OF which, amounting TO 49,
OO0.O viii be used TO pay off the re-
ceiver's certificates and floating debt.
Payment Of defaulted interest on first
mortgage bonds will be made out of the
funds now I'm the hands of the receiver.
Creation OF a supplemental mortgage
10 secure an issue Of S125. 00O. 900, per cent
unified and refunding bonds.
The retirement OF collateral trust three
year and ten-year per cent bonds at or
before maturity.
Merging OF Atlanta & Birmingham and
Florida & West Coast and other subsid-
iary lines. except the Macon. Dublin &
Savannah with the Seaboard Air line.
Reduction Of annual fixed charges from
s4.2l2. 800 10 $2.So5.000, a saving OF Is per
cent
Exchange OF general mortgage pei
cent bonds of 1907 for income bonds, dob
lar for dollar.
Return of Seaboard Air Line railway
and subsidiary companies now In hands
OF receivers to stockholders by January
l. 1910.
The $1,000. 600 income bonds which it il
proposed to sell will be underwritten BY
syndicate and bondholders will have
OA sAuSNAAbAAb pAO AANo ~ " -
the issue The proceeds of the sale OF
these bonds will be sufficient to redeem
the 81 $4,000 OF receivers certificates, the
$4,000 of two-year notes and the 1913
600 floating debt and will provide In ad-
dition 10000 cash for other purposes.
OF the new mortgages to secure an Is
sue OF S125. 100000 4 per cent unified and
refunding bonds the plan provides for the
setting aside OF So. $4,000 to retire under
lying bonds amounting to $50. 10000 first
mortgage bonds outstanding amounting
TO 1927 900. three-year and ten-year col
lateral trust per cent bonds amounting
10 Sl4,651 900 and car trusts amounting
to 100000 There Wal be set aside also
81 600 for the purpose of retiring at ma
turity the bonds OF the Atlanta and
Birmingham and the Florida and West
Coast Railroad companies.
1t has been estimated that the net
earnings of the company for the calendar
year 1909 will be upward of 5000, 900
which is approximately $4,000 more than
the amount necessary to pay the fixed
interest charges called for in the reor-
ganiZation plan.