The Wilmington morning star., 1947-05-21
MANAGEMENT
Continued From Page One)

participate in approval of the
plan. should be left for determina-
ton by the reorganization manag-
ers. who will also fix the effective
date.
Briefly stated, the merger plan
calls for Atlantic Coast Line to
take over all properties and assets
of Florida East Coast. The exist
ing SIP, 900, 900 first mortgage OBJ
legation of the Florida East Coast
will be paid in cash from the East
Coast treasury, and holders of
East Coast first and refunding
mortgage five per cent bonds, out
standing in the principal amount
of $45, 600, 600, and with $50, 900, 900
in matured interest in arrears, will
receive partial settlement in the
form of cash from Atlantic Coast
line securities.
The commission found that the
claims of East Coast stockholders
and of other unsecurer debtors
had mo value"
Atlantic Coast Line is now capt.
talized at approximately SIC, OO0,-
900 and the capitalization on the
newly acquired properties will be
limited to an additional $40, 500, 900.
$40, OOO, 900 Cash
Coast Line will put up 81, 125,-
600 in cash and issue divisional
first mortgage 3 IL per cent bonds,
divisional income-mortgage 4 IL
per cent bonds, and 81 dividend
preferred stock, and use Atlantic
Coast line common stock to pay
off the holders of secured CLAIMS.
Coast Line will assume all East
Coast equipment obligations, which
otherwise will not be disturbed.
Holders of East Coast first and
refunding bonds will receive this
settlement on the basis OF each
81. OOG bond and unpaid interest to
the effective date of the plan:
sol. 81 in cash, $500 of divisional
first mortgage bonds, SITS in d1-
visional income bonds, 5000 In "a
dividend preferred, and 1888 OF
present Atlantic Coast Line COM
mon stock, stated at $lOo per
share. =,
The commissions ruling said
that sit would not be compatible
with the public interest Tor the 81
Joe company to control the deb
tors property X x x since St. Joe
would be in a position, particularly
because of its large banking In
terests, to influence a great num-
Der Of shippers or receivers to
their shipments over any
connecting carrier which 1t may
wish to favor"
The commission said OF the ap-
proved plan:
.sThere will be a betterment OF
service to the public resulting from
a notification with the Coast Line
particularly with respect to:
Passenger service-in that loco
motive runs will be heightened,
equipment pooled, passenger tfa1'
fic offices consolidated, through
operation of dining cars effected,
advertising programs combined,
train personnel coordinated, inter
line tickets eliminated, and ADJUST
ment of ticket refund and baggage
claims simplified:
Freight Service
.sFreisht service-in that stop
page in transit privileges will be
facilitated, joint-line differentlals
over s~ingle-line hauls on certain
commodities eliminated. reciprocal
switching charges on shipments TO
and from industries located on the
debtors or Coast Lines tracks al
Jacksonville and South jackson
vile eliminated, the placing OF
diversion or reconsignment orders
made more convenient to shippers,
2 single operation of movement
! Of sugar cane into the sugar PLAN
at Clewiston effected, the Jack
sonville switching yards consolldat
ed with consequent savings In tlmf
now consumed in interchange AM
expedition of freight train move
ment in both directions, and tn
freight stations at Jacksonville
consolidated, affording more con
venience to shippers and receiver
of less-carload freight. X X
.The apprehensions Of the cit
zens and communities of the Eas
Coast of Florida that a merge
would adversely affect their In
t~erests are not justified since GA
it would be to the interest OF tn
Coast Line to serve all its terri
tory impartially, OBJ existin'
through routes via Jacksonvlll
would be maintained and &C. Will
the Coast line would attempt t
retain its long haul, its appeal t.
the public would be based prlmarl
" On the quality of its service
and the traffic relationships be
tween trunk-line carriers Wouls
prevent any abuse of power sci
as would be possible under con
troll of the debtors line by the st
Joe company.
The effect of the merger upor
the Southern Railway System ane
| seaboard Air Line Railroad com
nanv if any. would not adversely
affect the public Interest,"
SAME AT ANY AGE
GREENSBURG, Pa, W'D =