Daily Democrat and news. [volume] (Davenport, Iowa) 1859-1864, 1859-12-13


OF Tho most important Inks in the line
ofralwsy cemmunication between Dav-
enport andlhe eaatern cities. Its future,
more than its present, connection with
the local interests Of this portion Of the
Northwest makes every subject involving
its prosperity matter Of consideration
with rs. The financial affairs of the
consolidated company have been, and
are now, in an embarrassed condition.
BY an order made by the Circuit Court
Of the United States for the Northern
District of Ohio, JAMES II. EDGERros.
Esq, has been appointed REcEIvER,
with power to take possession Of, con-
troll and operate said road from Pitts
burg 10 Chicago" and he has given no.
tice accordingly.
We have great confidence in the
financial skill Of J. EDGAR THOMPSON,
Esq., the President of the road, and be-
lieve that, if the parties interested will
second his suggestions, the improvement
will be ultimately relieved from the
present difficulties which surround it,
The Pittsburg Chronicle says. that it
discerns from circular that the first
mortgage bonds Of this road, including
interest on them falling due before Janu-
airy 1st., 1861, amounts to SIS, 100000;
other bonds, including bridge bonds,
Sinking Fund bonds-issued for all cou-
pons except those of First Mortgage
Bonds-and interest to above date,
amounts to Sc, 800, or total amount
of bonds issued and to be issued to fund
all Indebtedness, $1l,sl6,50O. Mr..
Thomson's project proposes, in substance,
to fund the interest coupons on the
First Mortgage bonds till July lst., 1861
and also all the first mortgages on the
three consolidated lines into first gen.
eral mortgage on the whole line for So
100000, this to include 100000 ten
per cent. Sinking Fund bonds issued for
the payment Of coupons Of the First
Mortgage bonds. Next, all tho other
issues are to be merged into second
general mortgage on the whole line.-
The total amount of all bon d issued and
required to be issued to fund all indebt-
edness 10 as stated above, 81 $4,000.
The earnings of the road under its
present efficient and economical man.
agement, are steadily increasing, while
its Roadway and Rolling Stock are be-
ing placed in a condition second to no
leading thoroughfare in the country. We
therefore commend Mr.. Thompson's cx-
position and explanation of his plan to
the careful consideration of our readers.
The following is that portion OF the
circular referred to, in which Mr.. Thomp-
son explains his plan for extrlcating tho
company, and readjusting the debt:
The above plan for the REIMBURSEMENT
ofthc debt Of the Plt.sburg, Fort Wayne
and Chicago Rsilrosd Company-which
is at present secured BY no less than ten
distinct mortgages, has been arranged,
after consultation with the representa-
tive. Of large amount Of its bonds. II
accepted it will remove the embarrass-
mehts Of the company, and at once give
vitality to ills securities without the cost,
delays and uncertainty attending the
litigation which the numerous classes of
creditors, chiefly the result of the con.
solidation Of three distinct companies
must inevitably produce. The existing
first mortgages are upon separate divis
ions Of the road, and executed to differ
ent tru tees. The first issued is upon
the road from Pntsburg to Massilon-
covering line both in Pennsylvania and
Ohio. The second from N!assilon to
Crestline, in Ohio only. The third from
Crestline to Fort Wayne, in Ohio and
Indiana; and the fourth from Fort
Wayne to Chicago, in Indiana and Iii
nois.
These mortgages differ materially in
their conditions, and do not seem to
fully meet the requirements of the laws
of some Of the states traveTscd, as now
understood. 1t proposedto cover these
defects by giving to these bond-holders
a general mortgage over the vhole road,
that will place in their hands without
litigation, the most summary process for
enforcing the payment ofintcrest. It il
also proposed to make these bonds irrc-
decmable except by purchase in the open
market. This feature, when the email
AuIount Of debt to remain upon the
whole road 10 considered, will be found
of great value. 1t will be similar in it,
effect on this security to that upon IN
irredeemable ground rent in Philadel-
phia, which commands q premium of
about 20 per cent. over one that 10 re
decmable, upon property Of equal value.
The advantages OF this arrangement
is to fully justify the second class Of
bondhoders and tho company, in asking
q concession upon the part Of the first
mortgage bondholders, Of one per cent.
interest from the commencement, Of cash
payments. Its effect, if carried out, will
doubtless, be to advance the ma, ket value
OF their securities from so and 60 per cent.
their present rate. to so per cent, and
upwards Is it's advantages become fully