New-York tribune., 1874-02-09
RITLROAD REORG4NIzATT0N.


OPPOSITION or HOLDERS Oh FIRSr MORTGAGE boNpS
TO THE NEW PIAN-OBJEClIoNs I'D THE LhA'h
TO THE LONG BRANCH And sEA SiioRt CoNTNN,
Among tho large number OF defaultlng rail-
roads which undergoing process ol leorsah
zation, the bOndhOders OF Which are taxing Proiu
mary steps 10 REORGANIZATION by which their rights
shalt be protected. ia the New-Jersey Southern FOR
some days past an advertisement has appeared in the
leading ncwspapers Of NewYoTk. Boston, Trenton and
PbadeIpha calling upon holders OF first mortgage bonds
OF this road desiring TO unite with large combination
of bondholders their mutual advantage, TO cOnhu
noate their addresses aud the amount OF bohue heu oy
them 70 Lord Day Lord OF No 10 wililam-' or 10 D.
Augustus John Of counsel for the bondhoders com
miee OF no &c Exchangeplace. in this city Ihe iact'
in connection with the movement OF the bondhoders
Indicated above as gathered by TRIBUNE reporter are
substantially "A follows:
the New,Jersey Southern Railroad proper e1t@nu'
from Port Monmouth 10 Atsion. about b8i miles, WIN
branches from Atson to Atco, si miles from Eatohse
20 Port Monmouth. 10 miles, and from Manchesln 10
Toms River 7, mes. on this road there is first
mortaage for s2.OOO.OOO. The Long Branch ana sea
shore Railroad connects from Sandy Hook to Long
Rraneb IA miles, and there is branch
from Writings Junction to Pemberon's Junction
lst ,miies. These owned by independent corpora
ons but their stock held by the NewJersey southern
Company. The latter Company also hold by lease
the Yiueland Railroad from AtsiOn to Bay siGe'
46s miles; the branch from Toms River TO
Barnegat Junction, - miles; the Maryland
and Delaware Railroad, 81 miles, and the
Kent County (Idl Railroad, % miles. This gives the
main line and branches length OF l75t miles, incuuhe
the leased extensions of 50 miles. According to the last
published report the Company owned % locomotives, 6l
passenger cars 10 baggage matt aud express cars lou
freight box cars, aud 300 stock and platform cars
on Jan. l. 1873 the NewJeIsey Southern Railroad
lfad SlD yyni
terms OF its first mortgage payable toward sink
ing fund for the ultimate redemption OF that debt soon
after this plan proposed to the creditors ot the
road secured and unsecured, for an entire roorganla
ton of the Company, including ts leased ana connecting
lines. The Company to have capital STOCK oi
o. and funded debt OF S7Ooo0OO secured by ahs
mortgage at per cent the whole consolidated ROAD
and the bonds we're to dated April 1873 and TO be
payable oct l. 1903, with interest semrannuay These
bonds were TO be exchanged for all the bonds Of the sew
eral companies winch should thus become cohsohda'eu
INTO the New-Jerscy Southern without any provision
being made Tor adjusting those various lines aceordm2
TO their different prOriiies; and there was further
provision for issuing iOOO additional shares ofstock
Tie new consolidated bonds were issued and enod"
were made TO induce bondhoders OF all classes TO take
Them IN exchange for the old this they deoued TO DO
Ou Nov l. 1873, hegCOmpany deiaulted on the semi
annual interest and the l0h OF hat month inc Con
tee reprcseutng certain OF the creditors, and con
and s. NJ Ml. revised their former plan, as Indicated
BY an address TO the creditors Of all classes VI which
the following are the important features;
Since our interview with yOu the NewJersey southern
Rulroad has made default IN the payment OF lle ~
ycmber coupons OF the first mori gage bonds, amount
ing 10 sOOU This has made the holders ol these Ouu
equally anxious with You To have thc company pacel
in position to enable II To meet at "a snort dae AZ
possible, its indebtedness, and 70 secure lhe SAINT ~
largest holders of bonds and stock. thc bondnoders re-
frrIed TO generously made proposition lo puI an thc
large on A secure footing II gives pleasure 10 ask
your TO the Arrangement proposed because we
believe very much better than The one that we haI
ori sage security on the consolidated rOiis at rare o
$26Coo per mile much more speedily thah al nr't pro
firsi: The consolidation OF the several railroad. he.
tween Sandy HOOK and the Chesapeake Bay. completing
our connections between Baltimore and Norfolk.
secondly: The ownership OF the respective railroads
organizcd under the general railroad laws of New
jersey by foreclosure sale uneer the hfNt rI"lt-
gage) SAID corporation Ia be- called Tie NeW-hork %
adelphna ana Baltimore Railroad IonpIhy' WIN
T5irdiy FSr ihe purpose Of providing for the pay
ment exchange OF the existing bonded lndcDcune
Of the NeWJerscy southern EillroaI' me pNrGha,e o.
ness. well the completion ot the r11d ~ II pro
posed TO execute one mortgage OF sHVVJo Ntrn VIII
cover q road 800 miles IN length with ai IT. appur-
teuauces and equipments. II Il proposed To pay the
floating debt OF The COMPANY a. the sauie sh,ll W "i
justed by he committee appointed iOr that purpose III
said mortgage bOuds az par
It's represented that only few Of the holders Of first
mortgage bonds have assented TO this plan. Many OBJ
cc that by scheme holders OF Old second mortgage
bonds aud also unsecured creditors OF the Company
TO share in the distribution Of the Committees oonsOli
dated bonds upon the basis with themselves, thus
depreciang their securities. The holders OF these first
mortgage DOnus; 10 Ilso huno.I naNe
combined for the purpose OF protecting their
interests, and desire TO procure sale
OF the road IN satisfaction Of their claims foreclosure
SUIT been begun by the trustees OF the hrs mort
gage OF $2,OO0OOJ OF bonds and Is proceeding
In their names These trustees are George t. Upton ot
Boston and benjamin Williamson, ex- Chancellor oi New
Jersey. Although receiver could have been appointed
appointed receiver in other proceeding, brought In be
half OF small crcdi,Or-a former empl0ye or the Com
pany-whOse claim IL sad 10 DC less lhSn soUl. ms
action brought undor tho "InsOyeat Corporations
act" NewJersey. The receiver has taken possession
OF the road, ana returned an inventory OF the Hdbt
property, rolling stock 6c which according 10 his esti
male valued at little less than S500C0J After taking
possession, the receiver entered into preliminary ar
rangements for lease OF the road ana all tue rolling
stock and equipments TO the Long Branch aud shorc
Railroad stock of which was formerly uuders OJd 20
belong 10 the NcWJersov SOuthern Railroad, but OF
which Jay Gould now President by Tic terms ot the
proposed lease have Of the
New Jersey Southern Railroad dnd all It's rolling stock
ana equipments for term Of nine months from Feb.
l. 1874 upon the following terms: They were 10 keep
the road and rolling stock good repair 2 To settle
up the back pay of tho laborcrs and cmpoye' Oh the
line net earnings II at all events at
the expiration OF the lease, ON Now /, loii.
The objection of the bOndhOlders e. the lease s tha II
turns over 10 the Long Branch and Sea Shore road the
hole rolling stock the most profitable period OF tho
year, the Summer months TO be returned IN the Fall,
out any compensation. and without any advantage 70
the bOndhOldcrs also the lease Itself Is not acconpa
med by any security even for The Que performance oi
road and rolling stock kept Ia repair.
10 Obtain unity action for the simple purpose pro-
ecting their interests and securing their property
They have no disposition to impair the validity OF other
what ls their own from use by othcr persons Tor
their own advantage.
THE COURTS.