New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-04-13
RAILROAD INTERESTS.
A SCHEME OF REORGANIZATION
"The Romans were Ike brothers,
In the brave days OF Old"

A SCHEME OF REORGANIZATION.
MEETING OF TIKI BONDHoIDFRs or The MONTCIAIR
RAnROAD-PIAN SUBMITTED BY THE HON ABRAN
s.. HEWITT AND HIS RESIGNATION FROM THE
TRUSTFEsHIP.
A meeting of the bOndholders of the Mont
clair Railroad held yesterday at No Ill Iberty-st
TO hear the report OF the trustees the subject OF the
condition of the road and consider the scheme OF
organization proposed. Smith Ely IT, presided, and W.
Ii. Mcdowell acted rs Secretary
The Hon. Abram Hewitt, one OF the trustees made
statement reviewing the troubles Of the road and the
measures he had taken to place its affairs basis
which would admit Of the contemplated reorganization
In conclusion he submitted the following plan, which
had approved by the committees of the fret and
second mortgage bondholders:
l. As soon as the deed Ia delivered under the second
mortgage sale organize corporation under the
general statutes Of New-Jersey with capital stock
2 The proceedings for foreclosure of the first mortgage
to he pressed a conclusion and the property to tie
tees acting under advice of the advisory committee
shall deem il expedeut not to make such purchase.
3. The Company TO make new first mortgage for
SsoOOOo OF bonds which to be used only in building
the road to Greenwood Lake aud Caldwell, paying Tor
the right of way, providing additional equipment and
for such other improvements as the directors may deem
further issue of 81 900 900 Of bonds in case the road
should be leased to responsible party at rental which
=. h ~ tned nv itb rcy n,nonv VI the net in
OF this sum to be divided between the stock
holders not to exceed per cent per the amount
OF stock $156O,00O, to he issued by the company
This additional clause Of $1O00O00 Is only TO be used
for extending improving, and mountaineering the rail
road, and only TO be issued at par in payment OF actual
cost expenditures previously made. -
4 The second mort gage 70 be made to cover 81
annual dividends exceeding Sig per cent. AZ the
directors shall declare out OF the net earnings As add
tonal security for these bonds 100000 OF capital stock
Is To be deposited with the trustees OF the said
with the b gnf to SUs ero u1 SM5
this capital shall be applied by the trustees 10
the payment Of the coupons on the bonds. In case or
vacancy in the B0aad of Trustees the bOndhOderR 10
elect trustee at meeting To be called for that pur
pose, any trustee may be removed by OF the
majority IN interest OF the bonds al meeting to be called
by officer any trustee OF the company at the re-
quest OF 800 600 OF the bonds
B. further OF ii $50 600 OF capital stock should
be made, hall of which, viz, S7SOoOO, should be dev
full payment Of the bonds and coupons aud the remain
ing $3.50 600 shall be delivered to the present first mort
gage b0ndholders pro rata In Of the undue con
pOns up to, and Including March 1879.
g. For the bonds and remaining coupons of the first
mortgage bOndhoders 81 900 Of the second mort
gage bonds ~ be given for each old 81 900 first mortgage
bonds
T. In the event all the old first mortgage bonds not
asserting this plan the right Is reserved 10 those who do
rata the amount which Will be due
10 the non-assentng D9ndholdeFs ana 10 Iae oOnus
which would have becn delivered 10 them.
All holders of existing bOndshrst and second mort
gagetO assessment or 0neh1 or one per cent on
the value Of the bonds before receiving the new stock
already paid To be credited IN pay nent OF
this assessment 49,
After reading the scheme for reorganization Mr. Hewitt
rendered his resignation Considerable debate
arose as the advisabty Of acting immediately upon
the plan for reorganization but IT finally concluded
that would be udcious TO refer the matter back
10 the Committee further consideration pro
posed notifications and the reconsideed report To be
submitted at a future meeting. L. Nyman Jones was
added Committee, and the meeting then adjourned
without accepting Mr.. Hewitts resignauon