The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-02-13

OF bondhoders and creditors of the MAJ River aud
Lake Erie Railroad Company. without the necessity Of
having recourse TO litigation and the appointment of re-
ceiver the committee unanimously propose the following
arrangement
The holders of the following named securities. In
oeraon of the premises to surrender two coupons for
which coupons they shall receive stock Of the Company
at par said surrender to commence with those due in
December 1857. That for the coupons falling due in the
next three succeeding said surrender the holders
If the securities shall receive three and one half per
cent per the coupons falling due In those years,
by passing coupon each and the payment OF the
second in full on the surrender Of the two
Tie securities indicated follows to wit
900 900 bonds due 1866. ...... L coupon, SS5 900
700 600 bonds, due 1875. g 24500
224 600 dividend bonds. ..............1 1000
256, 900 S. c. Indiana r. r. bonds. 1900
?56 COO g c. K Ind. per cent stock Il 10000
100 900 Spring. Col. guaranteed bds.l 5000
Total. 81, 900
Multiplied by two, the number of coupons to be
Amount surrendered on half payment Of interest
lot uhree !eas..... ..................'.'. Z'oVoo
Total surrendered by bondholders s455 600
By enabling the company to control its pledged securi
ties, this process will place at the disposal OF the com
pany the following means, viz
Amount Of coupons surrendered, above s455 900
Bonds Of 1875, hsld as collateral, at par... $4,000
sandusky City and Ind Railroad bonis, at par. 1900
SaLcusky City per CT guarantee stock, at par. $4,000
Total 900
Applicable to the extngushment Of the following La
Past due l norg bonds, not including interest; s2ls 900
tloatiLg uept oOVOoo
Boat debt 49, 900
Tota ..................... 81 900 900
The difference between this and the amount Of debt
10 be ext1 guished expected to be realized by reduc
on to be made by the holders Of the floating debt hay
ing regard 10 the amount OF security held by each creditor
for his claim.
The capital the company for which certificates of stock
have been issued amounts to. 81 691 900
To which, if the foregoing arrangement be con
summated will be added stock to be issued to
the bondholders for the fret TIVE coupons sur
rendered neutrality-suspicious.. ........... isZooo
is further proposed by the committee to cut down the
The stock would then represent 81 43e, 545
Ire BONO OF i0o
Dividend bonds cue 1890 aud 1862 .......... $4,000
: c. amt lad Railroad NEUTRALITY-SUSPICIOUS.. $4,000
: c. aud Ind. per cent guar aneed stock 80. 100000
Springfield and Col. guaranteed bonds. 900
Thus making the reduced cost of the road ASS 54s
The permanent charge upon the income of the road will
Interes, 900 600 mortgage bonds. 900
Interest dividend bonds OBSERVATION-DISCLOSURES. 13A40
Interest on Indiana per cents. .......... 24,500
Dividend Indiana per cent stock. ........ $4,000
Interest on 5. and Col guaranteed bonds. 10000
Total. ,a4O
As a condition upon which the foregoing concessions
shall become binding upon the bondholders and stock
holders II understood and required that compromise
and settlement TO be made satisfactory TO committee
constituted for ha, purpose shall be assen,ed to by the
the holders Of dividend bonds falling due in 1850 so,
shall exchange them for bonds having long time 10
run, and that no interest whatever be paid upon oi
said bonds unit, they exchanged and is recon-
mended that the committed 10 which the adjustment OF
said floating debt and dividend bonds be referred shall
be named by this meeting Of bondholcers, by resolution
with powers 20 act finally.
The above plan some modification Of it. is believed
by your committee, will be promotye OF the future inter
ests Of all parties concerned 10 greater extent than any
plan which shall look resort either to the courts TO
the Legislature for relief The prominent and controlling
which have operated the minds Of the commit
tee briefly these dsturbs Of the ultimate le
gal rights the parties the arrangement il
tam IL operation, aud cheaper and nper than any
other mode suggested Above all to the corporation
privileges thai might not be left undisurbed should the
chatter be submitted 10 the Legislature Tor amendment
/ N, sPEtMAN,
WIN r. HoWES
The report was also accepted by the Boston meeting,
and the following supplementary instructions 10 the com
mtee named Va the report and az such asented to by
the committee making the report, were moved by Mr.
Sps man and ado pttd by the meeting.
In addition 70 the condition Of the report, 70 witthat
that The holders Of the floating debt shall make SUCH
Attachments from their demands shall appear in the
aggregate to committee appointed by the eondhoders
cessions made by the bondholers-the following conii
tons -
l. TIE directors OF the Mad River aud Lake Erie Rail.
road Company shall every month furnish statement Of
the affairs Of the company, which shall embrace the
ueasurers monthly trial balance list Of bills payable
and receivable the gross income euumeraue from what
sources the operating expenses In detail the amount OF
the pay rolls and number Of men enp yed aud such 9th
Il
ing q the operations Of the month, and shall cause this
monthly statement 70 be sent 10 Boston, aud 10 be deco
sed ia some place where Il may be open 10 the bond and
stockholders Tor inspection and examination.
2 The directors shall also make annually report OF
the dongs Of the past year agrceaby 10 the usual form
of such railroad reports giving full statements OF all mat
tiers Of interest tytho bond stockholders and shall
this report TO be printed and circulated in the usual
manner, al least ore week previous 10 the calling Of
meeting preparatory 20 the annual meeting.
A preparatory meeting OF bona and stockholders
shall be called by the directors Of the Mad River aud Lake
Eric Railroad Company, 10 the city of Boston, at least
twenty days previous 70 the annual meeting in August Of
each year, AT which meeting the annual report shall be
presented, and the President Of the company, some
person persons duly authorized By the Board OF d.
feclors shall be present TO give such nfOrmaton mag
be required 10 the end that stock aud bOu1hoders may
he instructed the exact pos ion and prospects of the
company that stockholders may be able by proxy
otherwise, 10 vote niegently ut the annual meeting
On motion Of Mr. Healey, was voted that the report
and supplement bo printed
un motion of Mr. D. A. Neal II vo.cd that the com
mee provided for consist Of three personsMessrs Fol
lett Spc man and HOwes-bcng the committee who drew
up the report
On motion Of Mr. Sa,ons,all, II voted that the com
mt'ec now appointed have full power W perfect the
rangemenis with all classes Of the creditors OF the road,
which are embodied In the report
Annual ReJDost n the Gso m n ps0ept OT