New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-06-20
RAILROAD REoRGANIZATIOY.
A DIVISION OF OPINION AMONG THE oswEGo MID
LAND BoNDHOLDERs.

A DIVISION OF OPINION AMONG THE oswEGo MID
LAND BoNDHoLDERs.
The first mortgage bondholders Of the New
York and Oswego Midland Raj held meeting
yesterday afternoon at the Cooper L. ate. The secre
tary read the report OF the Committee Of Investigation
The result, according 10 the Committee, has been to
confirm and sanction the report OF the receiver pre-
sented to the bondholders May Is. The Committee
are satisfied that the management OF the road by the
exhibits great improvement over that OF the
previous Administrations the Committee ask special
attention the receivers certificates Issued by order
under sanction OF the Court as lien prior to the first
mortgage The legality of the issue has been seriously
questioned mainly the ground that there be
such thing as a first mortgage or first en If a Court
can so easily create lien ahead OF it,
The disturbances along the line gave warning to
that unless the wages due to the abores
by means secured serious interruption TO the
business of the road would DO the consequence. In
settling by the issue OF receivers certificates
the Court and receivers have benefited instead OF in
tured the bondho Gprs and the formal recognition of
the certificates is advised will give much slti>ac
ton along the line OF the road, alay hostile feeling
and enable and others holding them TO realize
fair price for the certificates, where they are now
much reduced In value. The coal traffic upon the leased
lines is already quite important and shows
steady increase. THIS Committee therefore recommend
the recognition of the receivers certificates issued In
pay ment cost OF these lesser Ines and believe
their issue fully justified 10y the circumstances Of
the On the entire limo Of the road tne costs
not in of It's earnings The increase OF trains
made during May to meet the Summer business has ths
far resulted in material Increase OF receipts. Tie
plan rrOrglnizitIou must provide for the receivers
certificates ami haDeS, the costs OF the foreclosure
suits and the eApcnses OF reorganization, lDcudng the
cOnSel and trIsU fees and Oner charge. A. Mcss-s.
Hewitt aud Stevens who have had thr Management OF
road during tdo pane had devtcJ their time anu
managed the road that II did lose money, the
Committee advise the bOndhOders 10 request the
tinuluce OF these gentlemen In Office AT least I'LL the
is 1n,r1il. or
"A conference with me Committee OF second mOgig
DOndhOldcrs the hope was expressed D. them That In
drafting plan OF re0rsanzltIon the junior Interests
would he required to contribute In cdsl the same
percentage prior Interests aud that tnClr ritlO OF
contribution would reduced proportion to their
remOteuesS from carly benefits.
The Committee, l.. ii. Meyers. IT,. Drier, and C. ID.
Perkins, discia Gcd ". a. ,cvens disagreed Win
tbe rruort of inc COMMITTEE ami presented his views nm
"A long report. He claimed that the receivers report
created strong DOUBT as 10 whether tao MANAGEMENT
exhibits any improvement over that OF the previous ad
nisraOAs, aud denied that the MANAGERS lost 5000
per day, the Committee had reported. During the
entiro scdi year, said he the road was unfinished ANA
IN two parts AMI afforded direct communication
with NcEYOIk Ulrf he receiver, 10 mas always been
continuous route dOrlnS connection from AL points
TO NewYOIk, ana III t1s RESPECT II Is better able to
at the same time could DC managed AT greater
prOnt business dOIe than could ever have been
done before could earn more, alu al leSs expense
He ndd grave dodDts a. 10 tr WISDOM Oh the Issue on
OF receivers certificates, ana he urged the
boudhOlders - recognize them. He recommended
the acceptance OF the resignation of Mr. Hewitt ~ re-
ceyrr, the securing nj man III his place educated
railroad business IL also recommended that those
present should oSdnzo as convention ana form some
plan of all the bOuduOliCrs He urged that
committee elodld DC appointed to pniehasc tho road
A very animated discussion followed, but decision
committee report 10 a future meeting plan project
Ing the Of tne creditors in the reorganization
should Dc empowered o. M Tdc iGc iOiiD"IhS
Comnittee was appJlht,d: H. H. MEYER. CHAIRMAN; j.
OF Pn aiephId c. L. Perkins OF New YORK. In DrIer OF
New-York, Newton Chase oi Hartford.