The Sun.
London, England, 1870-05-28 00:00:00

THE ATLANTIC AND GREAT WESTERN
RAILWAY.
OFFICIAL SCHEME FOR REORGANISATION.

FORECLOSURE AND SALE OF THE LINE TO TRUSTEES,

Foreclosure, under the Consolidated Mortgage, to be prose-
cuted, and Decrees for sale obtained, and the Railway, with its
rolling stock, leases, franchises, sold ; and to be bought by
General George B. McClellan, William Butler Duncan, Esq.
(Messrs. Duncan, Sherman, and Co.), and the Hon. Allen G.
Thurman (United States Senator from Ohio), as Trustees and
Agents for the purchase of the property on behalf of the Credi-
tors, and for its reorganisation under the scheme herewith.
The Trustees to organise a new Company, under the title of
"The Atlantic and Great Western Railroad Company."
During the time required to complete the reorganisation the
Trustees may appoint Managers to conduct the affairs of the
Railroad, and appoint a Provisional Board of Directors until the
Board of the new Company is regularly elected.
The Trustees to cause to be executednew Mortgages, as herein-
after mentioned, to a Trust Company in America, and to have all
the new securities prepared and forwarded to their Agents in
London for issue, in accordance with this Scheme aud Agree-
ment.
All existing Bonds, Coupons, Certificates of Debenture and In-
debtedness, Shares, and other securities, to be lodged, if re-
quired, with the Agents of the Trustees in England, who are to
give Certificates acknowledging the receipt of the securities, to
be held for the purpose of this Scheme. Application will be made
to the Stock Exchange to recognise these Certificates, to be dealt
in as representing the original documents, pending their exchange
into the new securities when ready for issue.
Holders of Divisional Bonds who may prefer to retain them
until the new Bonds are ready for issue, may do so, but all over-
due Coupons up to and including Ist July, 1870, should be de-
posited with the Bankers on signing the contract and assent, and
the Bonds stamped to that effect.
Scrip for the new securities will be issued in exchange for the
Bankers' receipts as soon as the necessary legal formalities will
permit.
The Trustees to take such legal or other measures as may be
found necessary to carry out this Scheme.
A form of Contract and Assent to be prepared for signature.
The New Securities are to be issued in the following order :-
1. First General Mortgage Bonds for $10,500,000, or such
amount as may be required for the purposes hereinafter men-
tioned, secured by a First Mortgage of the whole line of road,
franchises, rolling stock, and property of whatsoever nature or
kind.

These bonds are to be sterling bonds, bearing interest at the
rate of seven per cent. per annum, payable in gold, half-yearly,
for a term of thirty years, with the option reserved to pay them
off at any time after ten years ; but a default in payment of two
consecutive half-year's coupons shall render the whole of the
bond and interest due and payable, and in such an event thirty
per cent. of the whole issue of these bonds shall have the absolute
power of foreclosure. These bonds are to be exchanged for the
present first Divisional Bonds and overdue coupons thereon. And
also for twenty-five per cent. of the Certificates of Debenture of
1864. _ _

2. Second General Mortgage Bonds for $7,000,000, for such
amount as may be required for the purposes hereinafter men-
tioned, secured by a second mortgage of the whole line of road,
franchises, rolling stock, and property of whatsoever nature or
kind.

These bonds are to be sterling bonds, bearing interest at the
rate of seven per cent, per annum, payable in gold half-yearly,
for a term of thirty years, with the same conditions as to the
payment of interest and principal and power of foreclosure as
are to appertain to the First Mortgage Bonds. These bonds are
to be exchanged for the Second Divisional Bonds and overdue
coupons thereon, for twenty-five per cent. further of the Certi-
ficates of Debenture of 1864; and for all coupons due prior to
January 17, 1867, heretofore not duly paid.

„
3. Third. General Mortgage Bonds for $22,500,000, or such
amount as may be required for the purposes hereinafter men-
tioned, secured by a Third Mortgage on the whole line of road,
franchises, rolling stock, and property of whatsoever nature or
kind. _

These Bonds are to be sterling Bonds, bearing interest at the rate
of seven per cent. per annum, in gold, payable half-yearly, for a
term of thirty years, provided such interest, or any part thereof,
be earned during the year, but not to be accumulative. These
Bonds are to be exchanged for the Consolidated Bonds, for
Twenty-five per cent. of the Certificates of Debenture of 1864,
and for Twenty-five per cent. of the Certificates of Debenture of
1868._

4. Five per cent. Preference Shares to be given for the overdue
Coupons of the Consolidated Bonds, matured since 17th January,
1867, and for Twenty-five per Cent. of the Certificates of Deben-
ture of 1868.

b. Ordinary Shares to be given for Twenty-five per Cent. of the
Certificates of Debenture of 1864, and for Fifty per Cent of the
Certificates of Debenture of 1868.

The Securities of the Atlantic and Great Western Railway, after
conversion, will be cancellee by the Trustees, and the numbers,
amounts, and description published at stated periods, but the
Certificates of Debenture of 1864 will be cancelled only when the
proportionate amount of collaterals are duly withdrawn from
the Trust, when both will be cancelled.