The New York herald., 1870-04-04
NEW HERALD, MONDAY. APRIL 4 ls7o.gRlPLn SHEET

ana Saginaw Rairoad ~ Lansing and with tho
Grand river Valley Railroad al Charlotte.
TnH ATLANTIC AND GREAT WESTERN HALLWAY
MUDDLE.
The details Of the plan TOR reorganization OF the
analH Of the Atlantic and Great Western Railway
under tho management Of General Mcclellan and 8.
i. M. Barlow are given at length In pamphlet
issued to :he stockholders and boudhodets BY the
president, James NcHeary. The plan u is ioi0ws:--
Inc principle OF the scheme Is that the earning
powers ef tue Atlantic and Great Western equal
70 its engagements; but that these powers have
revenues have been diverted from their just appro.
priau0d. Ia arranging the niiars Of railway over
Oey .es length extending through three nde-
and which has been dscfed!ted for several years
by incessant speculative hostliltles IT Is inlp0s.
slole 70 project ever, abstract rghtal rights were
Invaded Dy tue wanton suspension Of payments in
january, 1867 they can only Oe protected ~ the
tent tia. the uccun mated complications Will pcr
mlt, ana advised by emneat counsel the plan here.
with has been adopted as one most likely to meet
with general acceptance. we Lave endeavored so
to arrange prioriIes ana equities as Will. In the
shortest possible tine do justice 10 all. Considering
the large revenues ackn0w lodged to have been
serve Ms lie as corporation, II IL not
the future 100 Literally 10 rely on Its restoration 70
s0lvency and independent management for q rapid
Increase OF its nelravenues Tue u after or sterling
pay nients on some Of the bonus appears kelv to
be settled by an early restoration OF gold currency
the United states that was considered unnecessary
70 cucumber tue scheme W tn d temporary arrange
ment bui, desirOus 10 preserve tue extreme rhls OF
every crell ~ reserved for future cOnsidera-
ton. II is proposed TO make foreclosure and sale
10 trustees tGenerai George b. Mcclellan and s. L. III.
Barlow, ESD, OF New YORK; who undertake, on CON-
petlOn OF the necessary arfangenienfS to form new
company under similar tile. aud to issue new 80.
cures III tne folio wing Order:-A first general mort
gage over the whole line OF road aud property
VIII be created, large enough 10 enable an issue OF
bonds at par to be exchanged Tor the rst divisional
bonds ana overdue coupons, and also for twenty
five per cent OF the certificates Oi debenture Of 1854
SECOND general mortgage over the whole line wal
be createO large enough to enable an Issue OF bonds
at par, to be exchanged for the second divisional
bonas and overdue coupons, and for twenty-five per
cent tner OF the amount OF the certificates OF de-
to suspension. Under tlis arrangement the a,vi.
siona. bondhoiders are apparently gamers; they re.
cetyc general mortgage o0nds covering tue Whole
property Of the company instead OF portion only,
as ut present twnich gives some compen.
satton by increased security for any tenn
all parties gamers by relieving the road from the
conflicting claims US to prforities. Which have been
years. A third general mortgage over the Whole
line Will be created, III order To secure the principal
OF the consolidated bonds and twenty-five per cent
OF the unsecured certincates Of deocnSure OF 1868
held by general creditors. But III order 60 prevent
the possibility OF fresh disasters It proposed nas
the third mortgage bonds shall receive seven per
cent interest only II earued within the year but as
much as is earned Will be divided. Whie this plan
\ suggested as necessary measure Of precaution
1t that after the first year the seven per
cent Will be regularly PAID and that IN brief period
the interest on The preference shares following the
common shares receive handsome dlvloends.
For the overdue coupons OF the oOn.
sOlldated bonds shares Will be issued.
The certificates OF deoenture OF 1894 will receive
onelourGh OF their par value flrst general mort
gage bonds and One-fourth IN second general mort.
gage bonds and the punctual payment Of the inter-
est these Two classes OF bonds Is made absolute;
In addition to tho fifty per cent OF their par value
thus arranged. the certificates OF debenture Of lSG4
wil receive twenty-five per cent further OF
their par value In i've per cent preference
shares, to follow immediately alter the
third mortgages have received their seven
per cent, and for the remaining fourth OF the
certificates OF debeDture Of 1864 common snarcs will
be issued Therefore the debentures Of 1864 viii re.
ceive par In the new securities after which further
been provided for, IN ADDITION to the one and q
quarter per cent already divided by the trus ees.
The debenture of lSC3 or tho open creditors" " Will
third mortgage bonds, 0ne-f0arth IN five per cent
preference SHARES and the balance In common
shares.