The Birmingham age-herald., 1914-04-03
REORGANIZATION OF
 4. B. & A. RAILROAD
 ABOUT COMPLETED
Will Be Known After Sale as Georgia, Alabama and Western-New Fi-
 nancial Backers

The reorganization of the Atlanta, Bir- mingham and Atlantic Railroad company
 has almost been perfected and with the
 formal sale of the properties under court
 order that line will be known as the Georgia, Alabama and Western railroad. There is considerable interest evidenced in Birmingham in connection with the
 reorganization and the formalities that
 will take place in Atlanta during the next few days will be attended by some local people, it is stated.
 There has been no announcement yet as to who will be president of the new line, but 1t is generally understood that Harry M. Atkinson, who was the organ izer, builder and president of the line, will retire and permit another to take up the work. He will remain financially in- terested in the properties, however
 Kidder. Peabody X Co.,, it is stated, have taken over the financing of the reorgani- zation, and it is therefore presumed that the old Colony Trust will no longer be the controlling financial factor in the AL lanta, Birmingham and Atlantic, or the new line.
 Capitalization of New Company
 The capitalization of the reorganized company will be $270oo,00O common stock, s3200,000 per cent non-cumulative pre- ferred stock, $30o, 900 general mortgage
 bonds and s400,00O equipment notes The
 gold bonds will be issued subsequent to the reorganization. It is the belief in lo- cal financial circles that the bondholders
 stockholders and others financially inter-
 ested in the Atlanta, Birmingham and At-
 lantic will lose heavily by the reorgani-
 zation.
 It is believed that with the reorganiza
 tion and new money. the new line will
 be enabled to initiate some of the better
 ments that have been delayed some time
 by reason of the receivrship.
 In reference to the rights of holders of
 Atlanta, Birmingham and Atlantic SC. curites, the following circular statement has been issued:
 ''The cash requirements of the plan are estimated to be &,259,300, which amount will be realized from the sale of the se- curities mentioned apove to Kidder, Pea body X Co. It is intended that the cash | raised will be distributed as follows: Three million dollars in part payment of receivers certificates and notes; slo5, ss1 in payment of receivers tax loans; Sl00, OO0 interest on receivers certificates and sun rdies; $120,0O0 in payment of certain equipment notes and bonds of the Atlau- ia, Birmingham and Atlantic Railrold company; $110,O00 for the bankers and m derwriters as part compensation and coni- mission and $l9o,420 for expenses of re- ceivership, making a total of s425g, l00. The amount of expenses cannot be accu- rof falN data inc hut fh.a fA1o ct toe that it is hoped that about s500,0o0 will pc left for the treasury of the company. The general committee will be allotted
 H,Sl5,000 par value common stock of the
 new company which they will use as far as possible to pay expenses of the reor- ganization, receivership.
 Holders of the certificates of deposits, bonds and joint notes nave the right to subscribe for preferred and common shares of the new company follows: Each holder of certificate os deposit rep resenting first gold coupon bonds of the Atlanta, Birmingham and Atlantic rail- road company for each 5000 of such bonds may subscribe for $160 par value preferred stock and 5000 common stock of the new company for s160 each holder
 of first collateral trust , per cent four year coupon gold notes of the Atlal !, Birmingham and Atlantic and Birming- ham Construction company for each $lCJ0 joint note may purchase $ls4.S9 preferred | and $S43.05 par value common stock of the
 new company for .$134.S9 cash; for each $l0o0 first mortgage } per cent bond Of i the Georgia Terminal company the holder
 may purchase sl60 preferred and sl150 par value common stock for s160 in cash for 1 each $1O0O first mortgage per cent bonds 1 of the Alabama Terminal Railroad coln- l pany the holder may subscribe to $160 pre- l ferred and 5000 par value common for $160 cash, and if and when the properties | of the Fitzgerald, Oclla and Broxton | Railroad company are acquired, each | holder of a certificate of deposit repre- | senting 6 per cent 30-year gold bonds of l this company will be entitled to receive | s700 par value common stock of the new
 company for each 5000 bond.
 'The holders of receivers certificates and obligations are to receive in paymen. of principal 40 per cent in bonds of the
 new company taken at 90 and 60 per cent | in cash"