The Highland weekly news. [volume] (Hillsborough [Hillsboro], Highland County, Ohio) 1853-1886, 1875-12-23
sborough Highland County, Ohio, Thursday 23 1875
c. g. o. r. r.
Plan for Reorganiza tion.

The Richmond (Va.) Enquirer, Q
Dec. 11th, contains very importan
article to the bondholders and othe
creditors of the Chesapeake & Obi,
R. R., as well as to the public gene
rally, who are interested in the futur
of that great enterprise. AS mos
of our readers will remember, r Re
ceiver was appointed some week.
ago, by whom the road is to be solo
in January, under a decree of fore
closure obtained by portion of tht
first mortgage bondholders. The
Enquirer states that some of the
heaviest bondbolders in New York
among them Mr.. Huntington, Presi
dent of the road, have promulgated
a comprehensive plan for the pur
chase and reorganization of the road
which seems to protect the interests
of all parties as far as possible, and
provides for the early completion oi
the western connections of the road,
the want of which has been the great
cause of its present financial Difficult
ties. The main features of the plan
are as follows:
New bonds are TO be issued in lieu
of the old ones-a LIST mortgage bond
to bear interest at 6 per cent, and
having 80 years to run; interest paid
in gold; amount of bonds, ST, ,00O,-
900. On S15,OOO,OOO of these bonds
the interest for the first three years
shall be paid in first preferred stock;
for the fourth year 8 per ct. in gold
and 5th year 4 per cent. in gold, the
balance in each case being payable
in first preferred stock; thereafter
the interest to be paid in full in gold.
The amount of new I'd mortgage
bonds will be S10,0OO,00O, having 40
years to run, with interest at 6 per
ct. in currency; payable for the first
six years in second preferred stock;
in the seventh year 2 per ct. curren-
cy and 4 per ct. second prefd. stock;
eighth year 4 per ct. currency and 2
per Ct second pref'd. stock; thereaf-
ter in currency.
The first preferred stock is to be
entitled to dividends at 7 per ct. and
the second preferred stock to divi-
dends at 6 per ct. per annum. The
common stock to be issued to the
amount of that now outstanding.
Holders of the old 6 per ct. mort
gage bonds will receive 80 per ct. in
the new first mortgage bonds and 10
per ct. in the new second mortgage
bonds. Holders of the old 7 per Ct.
mortgage bonds will receive 124 per
ct. in the new first mortgage bonds,
70 Sc per ct. in the new I'd mortgage
bonds, and 168 per ct. in the I'd pre-
ferred stock.
This plan, it is stated, does not in
crease the aggregate mortgage debt
of the. road beyond that now out
standing, avoids conflicting and ex-
pensive litigation and unnecessary
delay in the courts, by making fair
provision for all existing interests,
and aims to place the affairs of the
road upon a sound basis, and pro-
mote a vigorous development of its
resources at an early day. 1t allows
time for the development of its bust
ness, for the completion of its con-
nections, and secures the sale and
purchase of all the property and fran
chises of the company as an entirety,
and makes an equitable settlement
between existing liens.
We sincerely hope the above plan
may be carried into effect, as it GER
tainly seems feasible, as well as Just
to all parties concerned; and its sue
cessful execution would seem to in
sure the building of the western con-
nections of the road at an early day,
in which event we have good reason
to believe that Hillsboro will yet be
able in some way to secure the long
desired connection with the Chesa-
peake & Ohio road.
It is we'll known that Mr. Hunt
ington, the President of the G. & o.
road, has expressed his decided pref
erence of the route already surveyed
by the Southern Ohio r. r. Co. via
Hillsboro, as being the best for both
the Cincinnati and Chicago connec
tions of his road, and should the pro
posed plan of reorganization succeed
we may reasonably expect that he
will use his influence to have that
route adopted.
A few weeks at most will probably
settle the future policy of the G. 6
o. road, and we shall await the re
suit with great interest.