Wilmington daily commercial., 1873-10-29
FIRST EDITION,
The wIImIHston and western Railroad.

/
| ITS FINANCIAL ooNDTrIoN-AoTIoN OF THE BOND
HoLDERs-coL. MooMR's PROPOSITION TO RE
ORGANIZE. ,.-...-A ..f.-.t,t
AS the action Of the meeting of Wilmington q
Western II. r. bondholders, aud the propDHition
approved by them, have been made public in a
garbled and inaccurate form, we take occasion
/ to state the facts concerning both, ara
lu The meeting was held on the 22nd inst. at the
Board of Ira 10 rooms, in this city, apd attended
by bondbolders representing about $290 900, out
OF the $500, 900, Of first mortgage debt. Two
| reports OF the committee appointed at'tbe meet
ing on September 29th were presented. The
first was signed by six out of eightio the eCom+
mttee; namely, Messrs William M. Candy. M.
M. Child, Jas. L. Devon, W. O. Sprnance, Ed
ward Belts and Thomas b. Smith. and recomep-
ded that IS months extension be given the VII
mington and Western r. II. Co., in order to see
whether, in thet time, it's condition should i'm
prove. as the present management expect It to
do. This report was also signed by George H
Bates, with the qualified recommendation that
years extension be granted.
II. =. McComb, the eighth member OF the
committee. made . report which endedSwith
proposition TO make an "amicable arrangement"
with the stock holders and unsecured debt hold
ers, to have the mortgage foreclosed and the
road sold to q new Organization to be established
on the following basis ~ ii n o.
/. That the new organization have stock
capital Of 5000, coo. and bond capital Of $780,
900, to cover o hne of road sextandihg from the
Delaware riverto Oxford on suoh other point
as may hereafter be settled upon. N M r..
2. That the first mortgage bondholders surren-
der their bonds and past due coupons, and re-
eeive inllea Thereof, 70 per csas: 10 the bohds
stock of the new company at par 81
8. That the floating debt cfsditeFa reeefse. In
discharge Of their debt and interest, 2b pei cent
of The stock Of the new company, ct par. ~
That the present stockholders feceive, fore
their present holding Of stock 2s per Ce6i> OF the
s. That's board Of directors be shosens who
shall taks the Remaining assets Of, bonds and
stock andHpply 90 much of them as may be me-
cessary 70 cenplete and equip the e3tension to
Oxford or 70 such Other point as may be decided
upon. e1a eE
Upon the snbmiszion Of these reports. .sems dis
cussion ensued, and finally, vote being taken,
the proposition of Col. McC6mb was adopted by
the meetingy and committee of seven of whieiI
he was made Chairman, was appointed 10 Under
take It's presentation to all the other parties in
terested, and report to q further meeting Of
bohdholders. This duty the Committee is now
engaged upon, having had e meeting With the
W. W Directors yesterday. -
. aT THE OPERATION OF THE PROPOSED PLAN
70 re-orgsnize win be apparent to any one
who attentively conedes it. The bond holders
are to be paid 75 per cent, in new bonds. This
willireduce the total OF their claim to 1876, 600,
and it is proposed to issue 5000, ,O0O, will leave
S225 900, of new bonds for sale to make the pro-
iected extensions. The bondholders are also to
nave 20 per cent. in new stock, which would
place in their hands 1925 900, of that.
The floating debt creditors, who have claims
to over SS0, ,000, to receive there
fore, receive about $40, 900, of it. They include,
it may be added, persons who have advanced
money to pay int crest to the bondholders, and
builders OF cars and locomotives who furnished
the rolling stock with which the road is being
operated. Ifs = .rtf I'D.
The present stockholders are to receive 25 per
cent. in new stock. As they now have certificates
for S250,O00. they will get in place of it, new
certificates for S62 500, having one.fourth as
much interest in the new organization as they
have in the present one.
The stock account OF the new organization will
them stand
~ ~. ,000
Present Stockholders. s.................. $1,000
Aolais .ss'sssssss'-s.s.s.ss .P1Oft tOUU
There are various opinions as to what is tho
best course for the bondholders to pursue, and
some express the conviction thata fair period of
delay. such as was Recommended by the commit \
tee, should be given, in ordeF to see what show
ing the road Ii able to make, Its first year,
railroad men declare, is no criterion to judge by.
One thing seems certain, that it will have very
damaging effect ON all public enterprises involy-
ing large capital, and will measnrab1y prevent
any ever b eihg undertaken in this city, hereaf-
larlif nd 10