The New York herald., 1875-11-10
NEW JERSEY SOUTHERN RAILROAD.

The first mortgage bondholders Of the New Jersey
Southern Railroad Company, Mr. William Walter Phelps
presiding held meeting at 120 Broadway yesterday to
consider plan for reorganization. The plan proposes
consolidation with other OF the roads running through
Southern New jersey. The second mortgage bond
holders of the New Jersey Southern Railroad to
change their bonds for common stock at par, the first
mortgage bondholders to buy in the New Jersey
Southern Railroad the purchase be made by
appointed under the first agreement, and the rcorgan
ization and consolidation to be carried out by
mittee appointed under the second agreement Il
Southern roads consolidated then the New Jer
sey Southern Railroad is to be reorganizcd with the
Long Branch and Shore Railroad the basis OF
the figures at which they to be represented in
the consultations and lastly the agreement for consol
idaton is continue in force until May, 1877 with
liberty to all parties extend tho further IL
proper
There was good deal Of opposition to this plan dur
ing the earlier stages of the meeting, and resolution
was offered asking for its disapproval Mr.. T. 5. Fer
nan offered the resolution and spoke in favor OF ta
adoption He claimed that it not for the interest
OF the bondholders to adopt any plan contemplating
consolidation with any other road than such as are
claimed TO be covered by the FIRST mortgage The first
mortgage for 81 600 900 the New Jersey Southern
Railroad covers that road from Port Monmouth the
Raran Bay, Atco, the Camden and Atlantic road;
the branch railroad from EatOntOWn 10 Long BrAnCns
and the branch from Manchester to Toms River To
this mortgage the New Jersey Southern Railroad
pledged most Of its capital stock and the stock Of the
Long Branch and South Shore road and all the stock
OF the Pemberton and New York branch. Mr.. Jay
| Gould president OF tho road when the
default occurred, and Mr. Fernan claimed that
IL was his (Mr Goud's) management that
cansed its insolvency. On the Goth OF May 1874,
he states special report was made, signed by Messrs
Abram S. Hewitt Drake Smith, G. De Forest Lord and
w. O Giles, accusing Mr. Gould Of running the road
bankruptcy by the purchase OF the Vineand and the
Smyrna Delaware Kent roads, because these
roads void OF merit and destitute Of resources For
these he thought the present plan should be
iected After considerable discussion in the course OF
which Mr. Gould made the subject of somo severe
attacks tho motion OF Mr. Fernan rejected
Another motion that IL not for the interest OF the
first mortgage bondholders 70 adopt any plan including
the consolidation OF any other road than is claimed TO
be covered by the FIRST mortgage, was adopted by ma
jny OF the number of persons present. but lost subse
quently when the votes taken on the amount
OF stock possessed. Then many Of the opponents
OF the original pan finding they could not prevent its
adoption left Subsequently the plan adopted, and
pointed trustees represent the different parties In in
erest proceed with the first part ofthe arrangement
Messrs Henry Day, William Walter Phelps J. w. Stir
ling and G. w. Huntington were next appointed to or
ganze and conduct the new corporation. On motion it
agreed recommend the purchase OF boat for the
purposes OF travel from the surplus funds in the hands
OF the Chancellor After agreeing to assessment Of
81 so on each bond Of $500 600 70 deray present
penses the meeting adjourned To carry out the pro-
posed plan holders or 500 900 par value of the
first mortgage bonds must agree to IL.