The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-10-18

charged upon the divisions OF the line were al payable
In sterling, amounted 70 So eos 1907 the amount OF
providing for exchange OF the Buffalo bonds should be
SIS 500 70 complete the bond ds OF $40 600 O00
10 ~ spo.ra", sc,aaancv vhch cs a.
cleared up Al present The cert0cstesJof debsnture
total amount OF e. 500 900 bearng per interest
guaranteed BY the Consolidated Bank were issued IN
November 1894 . OF three years maturing the
18th OF November next and were secured by deposit
with Of several bonds and shares Of the
pany amounting in the whole TO the nominal value Of
$50 0S oo These certificates OF dsbenture did not how
ever IN any way constitute mortgage tho road and
the holders had to rely tho value Of the securities
deposited and the probable growth OF the railway The
total share capital Of the company 500 OOO but
enumerated security Of the certificates Of deben-
turo. There could be question that the line
was worth considerably more than the amount Of tho
divisional bond, and at the same time was not
worth the full amount OF all the claims against There
was NO other practicable way but TO have the railway
put into condition day BY day out Of It's own earnings
and there remained doubt that those would suffice TO
complete and repair the property The receiver bad
SsS ~ q n 70
ways, and the stagnation IN the petroleum trade, the
receipts Of the line for the six months only reached
65s 600 against 50 83S 702 for the corresponding
period OF 1885, and 81 1872 GA for 1865 and addition
TO this the receiver had had contend with
plee and dilapidated railway and absence Of any
capital fund collateral Ia the meantime,
very considerable and important renewals had been
effected out Of the net earnings The plan proposed by
the committee, after careful consideration 10 the
effect that they estimated the total OF completing
and repairing the line So 600 600 and the debt for
supplies and ike contingencies at 81 600 000 together
81, 600, 900; and assuming that this amount must be
taken from the earnings OF the line u would be
defer the interest the first divisional bonds for
two years, the second divisional bonds for
three years, and the consolidated bonds
for four years from tho 31st Of March last
II not proposed TO ask tho divisional holders
TO abate single shilling Of their debts-principa or
interest. Periods OF two three and four were
proposed because might be treated fairly certain
that ments Of interest conld then be resumed Their
expectation that the line would be far repaired
out of its earnings 10 be able to the interest
turing the first divisional bonds In 1869 and all
tho divisional mortgage bonds in 1870, and interest
thereafter the whole thirty millions OF bonded
debt And their recommendation that the deferred
coupons OF the consolidated bonds and the balance Of
the delcnture debt reduced by the securities in the
Bank OF England should be paid by per cent nrst
preference shares Those preferred shares should be
taken from the present share capital OF the company
and the company should guarantee that Of the first
earnings Of the line applicable to dividends there should
be first paid thereon before any other share received
anything, accumulatvo dividend OF per cent per
And they further suggested that other creditors
should be paid in five per cent second preference
accnmula've shares; 80 that In 1871 there might be
complete lne with but $50 600 600 OF bond debt and
share capital OF $50 600 000 earning interest upon all
Its bonds. II not also something towards its shares.
The committee consisted OF Colonel Sir w. Russell,
NJ p, chairman; Mr.. G. Bailey, NJ. p, Mr. T. Cave,
NJ. r., Mr. J. Fildes, M r., and MIR. +. W. Oewel, Of
Amsterdam.