New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-02-14
REORGANIZATION OF THE MIDLAND.


PLAN OF REoRoANHA roN-vIEws or ABRAM 8.
HEWITT
A large number of bondhOlders, under the
first mortgage, OF the New York, Oswego and Midland
Railroad, have responded 70 the call to communicate
their and the number OF the bonds held by then
to Aleu- Stephens Co., and It Is probable that the
number will be sufficiently large TO warrant inc
holding OF meeting for consultation In reference TO the
best methods of protecting their interests In the event
OF the sale Of the road under foreclosure suit now
pending There o general feeling Of opposition among
70 the plan OF reorganization proposed Dy
the Committee and published In THB TRIBUNE Tue
principal objections 10 the paD as stated to TRIBUNE
reporter who has consulted with large number are ~
follows
The provision that the new company shall MAKE
perpetual lease of the Montclair Railway, paying as
the interest the t260O 600 Of first and second
mortgage bonds of such railway company and on such
additional amount of securities ms shall be necessary 70
the completion of the railway TO The New YORK
line aud to the Hudson RIVER and that the pay
men of this rental shall be occurred upon the propey
of the New.York Midland Railway; inns tnsy na say
IN the interest OF tho Montciair Division, and which
sSss nS S 70 ,S0 e INDIANA '"'
Tney say, further that the socaled first MORTGAGE
bonds the proceeds OF when are TO he applied to the
building OF the railway from Middletown to the june
ton with the Montclair Railway at the New-Jersey
state line TO pay rentals the leased lines to Utica
and Rome, and to the payment OF the just CHARGES
attending the reOrgamzion these bonds to be entitled
to priority Of lien under the mortgage. This, they
saw Sl eonstitate in reality second morssge' l@ay
ucdLy third IN value They also say that the provision
Tor the issue OF sG0OCO oi bonds, 10 De spPuea III
securing suitable terminal fdclnies on tue huoson
Rver, opposite the City OF New-York ls IN TIE Interest
OF lac Montclar road.
TIE second Tor az some of the bondhoders claim, the
fourth cohsuha"teu 1orteato pohus arc W w. 10
S9ahSen 70 o v tiIIand Cmn,ny Tor the western
Extension equipment and consolidated bonds III pay
Of outstanding coupons OF each Tor secured creu-
ors OF the 0ne OF the objections ~ TINS Is tns
tho Western Extension never cen pay Tor ts coDsfno
equality with those holding hen on the NAN me-
rne plan e0htempiates m.r.easo az VIZ io o. "a 100
of $40 GOO mile Exceptions thls. and IL IA
s.id t.'t tue now Oonds WIN nave % per eet msa %
,h n,, ~ c'rsfv studied iG will be- found tual there
viii De d mortgage Of $1,000 per mile.
There are many other objections most OF which, how
ever hinge on those recited. One bondholder said:
Altbousn have some second mortgage bonds, I be
eve that first means first and that thc integrity Oh heso
nr.t holsee BONUS s,Vuu w ed i honabold
err shouId h va anything 10 do with building the ont
clair aud Wes,ern connections.
Another oondhOluer sal l. appears ,oao ,no lntca
on nar Win later ana unsecured creditors OF the Com
pany DON'T now tins can be done wSnout the con
sent OF the nfet motlRage pQnunollefs. q, .r o, .,
, S 90 ar,, Pyin,'',n a, the r,,bts ~ The
, s np" , 70 81, a Iii ns ~ 80 .,d
hrst NOR Isato as "o.i Ss eoo iait", au
uo NV v ~ the int.rst of the boiers or secora
mems, sVoohnVIoin an "a ;r 800 ~ wva,
uNenee Is 10 oe paceu ~ ANA sennrS, "f n%st hpns
"o Nv prSeelNlue lAo pii' Ny 90, ,' 10 80,
ana VI eaon W iss pie "" W. VIM end"g tho road 10
Inc wnt t o 70 place Inc road on its
buh1io' All " o wan. W w 10 70 80
Io'1 anu w 49,, ,a toa,t ,Dau tSt hands nnt can.
, "iI py conrt would sustain adding so
nol uhuei e'ahu thl' any ooul' "V ' o y, ~
per ott " se 49, ,n 1 ~ st to ns second mnrgave
pr'T u, S Sn t, a' iars, GItrr,s,s "
Mr. HEwIITs VIEWS
Theee statements gwen the views of those
o'' W." W ,r, ,o i,s 90
the Creultora Oomm"oe' Inc iop'iV0' oS"0u o'
NJ ha n
win, il as we'll acounnted with its condition and pros
"oo,s % anv ono Tho ohiect,ons were n,peated to
| him and ls opinion as to their validity was asked
"i" o"" MO 'p 90 " - ' - :, 49,
MI he"'t saiu s'"'' '"ousn INV ~ VI wy
Committee, he had examined the pan anu III met DIS
mira annr.val ue beheved that ,ts adoption would
nos, snhervo tho ,o,oross of the b,pdnolders OF the
D''' ' - - -. =, - -,
hrs class well as the other creditors. IL wac trde
that would be liens the road prior TO the
frat that the wesern extension was Mt pres-
ni'' '.,' 49, 49, oan,a,r,,,,oo 80
eDt OF no value, and that the plan contemplated ex'on
stone as we'll az maintenance but the question Tor the
nondhodoro 10 aoo IVA. ho 20 nes, 20 ut,ze rho prop-
a 49, 90 nnonos,ionahly ,heir. n the road
yere sola and ,hev wero mt in possession, what
would thew do with it, Although it had boon run as
economically az possible he himself having refused
take any pay for his services ~ nld noC paip rnhn
rAp.n n, o. ,'v 800. hands IL wu,nd run Cooper a
Hewitt with all Their capital IN very short time
the bogdh0lHers sn1u CONS i'o % 70 NJ o
terr ppeTy remueratye tney would nave to extend
the road to N5wYork either by purchase, lease or oud
m2 woald nave ~ procure terminal facilities Oh the
Hudson river IL carrying out any plan winch they
mIgnt adopt tBey wound naye money "a morl-
gage covering Inc new road Qi built ny then) and the
oId They would nave 10 mortgage their property
other borrowers 40 that mortgage would have
priority over all other liens He 0ld not bodeVe That
ANY connection cOuIl Be made with the Hudson
rnno,lto N.w-Y.rk by the Midland road
mora advantageous terms than by the proposed
cease OF the Montolair and the building Vf the
step necessary 70 make ts0 piVpe b, w.
trade could be secured Ii the were
Butt Dc 1OuuO not 10 DC Ndluc-