Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1874-08-10
MONETARY AND COMMERCIAL.

| CHESAPEAKE AND ONO RAILRoAD.-Messrs
Fisk & Hatch, the financial agents of the Chesa-
fneake and Ohio Railroad, who, together with
president Huntington, made every effort to pre-
went the rosd from going to protest during the
Irsnic have prepared the following statement
lsnd plan OF settlement for submission to the
Ib,ndholdcrs and creltors
| l. That the holders OF the SIX per cent First
Mortgage Bonds fund their interest for two
wears from Nov. l, 1878, e., that falling due
!Nov. |, le73, May |, 1874, Nov. l, 1874 and
MAY l. 1875. into the seven per cent income
lbond> OF the ,mpany, al tue Fate OF So per cent
flor the income bonds.
! H. That the holders Of the I per cent mortgage
bonds fund IS per cent Of the principal Of their
bonds, and the interest for three years from
J~u. !, 1874, on the remaining Is per cent INTO
the income bonds at the same rate, viz 90 per
cent for the income bonds. By this means, IN
connection with tue proposal contained IN SEC
ton ", there will be recovered to the owner
ship and the control of the Company, Tor future
U.s. in eXtrnoing the line from the present east
ern terminus on the James river at klchMond,
down the peninsula t. deep water ON the Chcsa-
peake Bay, enlarging the equipment, and other
wise increasing the earning power OF the road,
something over So, GOO OOO OF the per cent mort
gage bonds now outstanding.
Ill That the creditors Of the Company hold
ing 6 per cent first mortgage bonds as collateral
security lake Inc same 10 ACCOUNT III luii sett!o
ment of their respective claims, and fund the IN
tere,t fer two yesrs from Nov. |, 1919, on the
bonds so taken into income bonds, Oh the same
terms MS other holders Of = per cent first mort
gage bonds.
jny the per cent mortgage bonds MS collateral
.arurity receive, in settlement of their claims,
income bonds at IS, for three-lourths OF the
smounts due them, and I per cent mortgage
hn,l> ut SIS for the remaining one fourth, with
md fIlr,I "a raj VSt
on the per cent mortgage bonds SO taken to
account for three years from jan. l, 1874, into
income bonds on the same terms US other hold
or. Of per cent mortgage bonds.
" That the creditors OF the Company holding
no security, receive in payment tor their claims,
income bonds at IS, with interest adjusted to
date of income bonds The iAcome bonds issued
in settlement, rs above, are datei Oct. l, 1870,
and are payable twenty years attrr date, with
interest AT the rate or per cent per annum, pay.
able out of the sur Illus income of the road, tue
interest to accumulate until paid With the
foregoing arrangement carried into elect by the
general assent thereto of the bondholders and
ere iitors, it is believed that the ultimate pay
mel.t of every dollar will be Insured.
The future financial plans OF the Company
with resp ct to its existing lndebtetnc $ IN view
OF when the propositions to tho bondhoders
and creators were made, may be briefly lndl-
Gated rs follows, viz:
First: To apply the surplus earnings Of the
road over operating expenses during tn" perlod
for which the in crest on the first mort age bonds
Is ,unded after paying off arrears Of labor, &c,
10 increasing the equipment and terminal faclll
ties and otherwise adding to the efficiency and
earning power of the road in ortor to give it the
necessary ca .,acity to earn the interest on the
bonds thereafter.
SECOND: To resume the regular payment of
interest on the first mortgage b nds on Nov. l,
1875.
Third: To resume payment Of interest on the
I per cent bon.s o Jan. l, 1877.
Four.n: TO begin paying the accumulated IN
terest on the income bonus rs soon rs there shall
be y Surplus income for that pup SO, and con-
tinuc until all arrears on the income bonds shall
be paid up, and to pay the interest thereon reg
larry thereafter.