New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-06-08
RAILROAD RECONSTRUCTION
A SCHEME TO MAKE OVER ATLANTIC AID
GREAT WESTERN.


PLANS OF JAMES MHENGY AID HIS ASSOCIATION
PROPOSITION TO POmCLCsE THE MORTGAGES
AND SELL TIE PROPERTY-THE BROAD GAUGR
TO BE MADE HARBOw--ABBASGFMENTs Con-
CERNING THE sECURITIES-THE LEASED LINES
POWERS or DIRECTORS.
a copy Of the scheme of reorganization Of
the Atlantic and Great Western Railway Company,
proposed by James McHenry and his assocat has een
received in this city Tho main points Of this fol-
lows:
Foreclosure under the first or second mortgages 10 ia
prosecute d. and DEGREES sOr sale obtained, ana The rail.
road with It's rolling stock, leases franchises. 70 be Sold
AMI TO be bought by sir Geoge Ialfonr, h = BY ~ r.,
Hugh Frazer Sdndenan aud Peter Iurc'iInan, I'll Of
ran"ty on brhf Of e Creditors and for IT, reoreapla
ton under the scheme. form 81 contract and
to b prepared signature The trustees to organic
new COMPANY under tho title Of Tie Atlantic aud Great
may adopt. The trustees 10 have all the new securities
prepared issue, accordance with the scheme and
All existing bonds coupons shares AMI other securi-
lies Dc lodged II required, with lie trustees In In
Lland. who to give certificates acknowledging the re-
ccpt Of the me, 10 be held for Tie purposes OF tho
scheme Apple alton viii be made to the stock Exchange
recognize ~ certificates 80 be dealt in rcprscnt
ing the original documcnts iendng their exchange INTO
tho securities OF the new company The tI, 10 Lac
may think necessary 10 carry on tins scheme.
Ihe scasme proposed r. 70 ioU0"s: ,., ..,, A.
direct and absolute management Of the proprieDrs
through delegation 81 directors III L0n9on, WAC Sian
have Iu control the expenditures AMI policy ~ the
Company ai iat transfer and gistcr books be kept
Secono mat there shall be no power create bonds
mortgages, or obligations, or otherwise increase the capt
a or tine company nor u grant any iea5c oi ~. ~hple
any parts of the property Dor ~ accept any lase of
any oder III road without no consent Of majority Of
The Stockholders voting personally OF By proxy ai meet
ing lawfully convened, at not less than tbiIty days
notice in three London daily newspapers.
Third That the nee revenues Of the road shall bc
med t" london monthly ann e4S NY, q
reports from the executive ofccr- prepared ia the teL
iig5Die ,SIn Z l9risd y I:nssa Ia way. 81, ,,-
ure and reconstruction Of me Company, 10y hc election
OF 9lrcctor thc gauge o. inc ME r changed me caPi-
tai being raised b. Of first charge over the whole
FiTTh That the nominal par value and guarantees OF
existing securities b. maintained but that the annual
charges for Interest capital DC governed by the not
SIN: That tn frst mortgage bonds. with coupons
capitalized to Jan 1870 be convert into first prefer
!Is with per cent increasing to per cent Each SlO0
nominal value To- have one vote.
iserenH: That the second mortgage bonds. with
pons capitalized to the lat March, 1876 be converted
into second preference shares with interest from lst
March, 1876 commencing AZ per cent. and Increasing
to 5 per cent. Each 500 nominal value 10 have one
Ei,Lm: That the third mortgage bonds be converted
nio third prcftrcnre shares with interest commencing
Al l. per and increasing 10 per cent. Each 800
nominal yalue TO have one vote.
NinM: That the existing preference shares be Gu
vorted into fourth preference shores, with Interest COM
mencing at i2 per cent and Increasing 10 per cent
Each 500 nominal value TO have one vote.
Tenh That the common shares be converted into an
equal amount of common shares OF the new Company
Each $500 nominal value 10 have one vote.
ElerenA: That the rental of the leased lines in 1871
and ST.} modified To- allow OF the reduction ~ interest
on the bonds shall be tie first charge the boa- II
tc Com ANY, ar the new dehent're stock or Other NV
security be- sslled raising additional capital Tbs
overdue coupons will be paid in cash 20 asserting bond
holders ar ar the OlsiiCuii0u Of the Company.
Leased ine bonds 1872 10 receive per cent r-r
annum $40 ana 1877, increasing to 6pcr cent Leased
lines Don1s of 37J 10 rocc'c por cent per anda fof
1876 and 1877, increasing 10 81 per cent
Interest and dividends the above securities 10 be at
the minimum rates specified, until the leased lines bonds
aud the scYcIal preference shares receive such rates
They shall then Increase succession net earnings
pcri nj tbc rate per cent additional t. the .ased
Inca bonds aud the first and ond preference ana half
OF one per the rd and fourth preference shares
i'm order " priority untl tie maximum IL rcchd Al
interea and dividends 10 be payable Ou OF tie net earn
ingS of the year only.
Power reserved TO the directors OF the reconstructed
bompany to create bonds stoch or shares. leat ing
first charge the whole property Ia provide iO Inc
cost OF max ny the road of gauge ana the pay
IN. nj or exchange of that portion o first DOfigag" bonds
called Ohio bonds, due 1T April next, Amounting TO
S2AlG 600 currency, for the payment OF the OytrdGe
DETERMINATION stock and interest, for tie pawn nj OK
float debts ana loans against securities and Oi other
necessary prpOscs-nOt exceeding SsOCoOjO, 10 be Is
sued rs required and the directors shn have power 20
arrange and settle the above according 10 their dscr
ton.