Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-10-28
SOUTHERN RAILWAY HAS
NEW FINANCIAL PLAN
Special Meeting OF Stockholders to
BE Called Shortly to Pass
ON Bond Issue.
PROVIDES FOR IMPROVEMENTS
Will Exchange Development and Gen.
cral Mortgage 4 Per Cent Bonds
for New i1s Per Cent Issue in
Lettcred Series as Needed.

Plans for the permanent financing
or the Southern Railway Company,
which were discussed at the animal
meeting Of the Stockholders in this
city on October -. have been pruc-
tically completed by tho roads board
or directors. \ special meeting of the
stockholders has been called TO APP.
prove tho sanction OF the plan worked
out by the directors. providing for the
creation of new rcfundinS and i'm
provement mortgage. The meeting will
De held In Richmond, January D.
Plans outlined by the directors in
cIudc proposal TO exchange the de
NeIopmcnt ana general mortgage per
cent bonds Of the road for the new pro-
posed mortgages bonds. which will pay
4l-2 per cent. The Southern's new
refundinG and Improvement mortgage
VIII secure it is said. AN issue of gold
bonds limited TO $500. o0O. 900 TO be is
sued from time TO time In lcttcrcd Sc
ries. MATURING on such dates not later
thew, l%o:hber !. 1899. with interest at
such rates as may be fixed by the
board OF directors with respect to each
series.
President Fairfax Harrison. in let
ter to stockholders. said that sincc 1906
financial conditions have so changed
that the development and general mort
gage per cent bonds 10 not now pro-
vide, and have not for several wears
velopr1ent OF tho property. There hah
been a decline in bonds on the market
Tor seI.ral years. which is due to the
general demand for "A higher return
upon Invested capital. Mr.. Harrison
said, and not to lack OF soundness in
the compnny's financial position.
HEAVY DISCOUNTS HAVE
PREVENTED CALL or BONDS
The heavy discount which we would
IN cali Of
per cent bonds at any time within
the last several years has prevented
any such sales. he said. "In consc-
quencc, the most necessary improve.
ments have been betrayed by current
funds out Of treasury cash, and by re-
sort TO short-tcrm loans. and other
income producing improvements need
Ell Tor the efficient and economical
handling OF the growing traffic of the
South have had 20 be postponed"
Under the plans worked out by the
board Of directors there will be issued
presently sfl.333,Cf0 series "A" IL.
per cent bonds under this mortgage 10
retire like amount of DEVELOPMENT
anu general mortgage per cent bonds
outstanding: s3i,25a.0O0 series "R" ,
per cent bonds to be delivered :n,o the
companE's treasury In exchange for
Si.,t3c.poo development and general
mortgage bonds now held by the com
pany whics nave been issued for i'm
pr"vcments and acquisitions heretofore
maze.
deserved for future Issue: TO refund
outstanding bonded debt. other than
ueNc!opnieht nrd general mortgage
boHGS above provided for. Si7g..y, 900
10 fctire from time - time the proror-
ZION charGcab1. 10 capital of .uuin
mcht trus; obligations OUTSTANDING on
july J. 1915. Sio,i6l 600: to acquire our
b'lhuhH stock of certain leased ana
other linen s20,oc0.ocv. from time 10
tin" during the life OF the MORTGAGE
Tor additions. Settcrmcnts ana ncauIsi.
lions Sl33.ste. naa