New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-06-08
BURLINGTON AND MINNESOTA RAILWAY


WHAT THE BoNDHOIDFRs' COMMITTEE PROPOSE TO
Do-cHARGEs AGAINST THE BLAIR PARTY.
The troubles in the Burlington, Cedar Rap
ids and Minnesota Railway Company have been
planned in THE TRIBUNE, which Gavo few days
ago OF the circular issued by Mr. Blair who
has had charge of the road Frederick Taylor Chairman
Of the Committee Of Bondhodcr, has prepared circular
addressed the bon holders ia answer To tho assertions
OF Mr. Blair III this the following statements made,
with others
Having been unable after Mr. Blair had been in charge
of the road several weeks, to ascertain any thing - 70
ia, policy OF the new Board Of Mangelncit called
upon MesSrs. Taylor DOdgn VINO GecilLed 10 ihfASa
any information Later Mr.. Blair called upon me he
denounced the previous management o the Company
ana declared the roo WIN ~ VI, '.'' w =. "a - A..
less condition. He pronounced all the secrtirs 81 ne
Company worthless, and stated enphaicily tHdI me
Main Line aud Milwaukee Extension bonds were H0ith
no more than those ~ the Pacific Division He advised
that the holders surrender their bonds and take CONSOLE
IA statement TO the bonthodcrs In a few days Nhis
waiting the statement. received Letter from hIo
presenting most d.scOurgng exhibit of the COmpanys
All. irs Not .nrely sasf ii with Mr.. Bairs statements
each by himself, to examine tie road. Their rcioris.
agreeing each win the other, entirely contradctcd hr'
Inquiry the motive Of Mr PATS aud h. III Fl n;.
tain iron company. IN which Mcssrs Blur anl Taylor
large stoc&ho!Jers held notes OF t!e u g. E' ~.
ComIdny for several hundred thousand dollars, With
Pacific Extension bonds collateral security. The
Cunpanys financial condition made the notes Naiueess
o T few nils Of unfinished road and arc worth but
yrry Little Upon this showing some holders Vt
Nan i ,eTm nI sonsern the ft Of Mr. ars
large interest III the DOatng debt, and OF hs holding no
bonds xcep those which had been issued upon the Pa
cic Division that he not the prop custodian OF
their interests, the more especially since ne nu orocea
the idea OF a sOlidatcd bond, which mi-bt mean ne
placing Of his poor bonds on an eludy WIKI ou b'V
Mr. Blair proposes that the present holders OF all Tho
bonds consent to surrender Their bonds, aui - a,eN
in lieu consolidated bonds and preferred stock. Now
this arrangement is what we are deermei possible,
10 prevent. The Nam Line and Milwaukee ExtehsSn
bonds are good bonds and represent vade Inc Fseas
been issued 10 the extent Of IL 5000 upon "a miles o.
unfinished road, and are comparatively worthless An
alynntagcous TO him and his friends, giving them goed
bonds and preferred stock for their worthless b9ndH
But IL would he outrage upon Tho Main Line anu an
waiLoe bondholders To show DIR BARS plan OF reer-
ganization be ~ deuson and snare quote from nv
circular: Tint a consolidated seven per Ia
currency mortgage be made on ne % nss
ana given pro the holders OF the bonds AFTER me
relative value OF each shall have been aJdSiea ,es
be then given the balance due on the original bond
together with all interest on deferred coupons tn My;
1877" According 10 Mr.. BlalTs circular the boRsea
debt of the main line is with ntorestl SAY $4,000 peg
mile Tho bonded debt or lie Pacific Extension WIZ
$4,000 OF bonded Indebtedness representing ono ms
the main nne. would receive $4,000 o. nTsi n9Is
preferred stock The holder OF $4,000 oi bonded r
debeines representing ono mile OF .he anhlsae
bonds covering the whole road and S7OOO0 OF proiefr
stock Mr.. iaIr and his friends hold gas nave Ooeh ~
forllcd) 100000 Paciuc Division bonds. =, IA
II the road be reorganized upon this plan, ne ans
hs friends would receive In place OF the ~sOoVoV soi
less Pacific Extension bonds 100000 ol gouu ppnas'
unnn gp of al the property ofthe Company,
aud 500 900 preferred stock This proerd st9sh Ss
dyidcnds would rely upon the earnings or ne tacins
Division only, but it would claim share Tor an uio W
Mi tAe earnings of the whole ROAD The question sus
ssts ITSELF 10 Main Line b0nlholer, II the Main Line
cannot earn enough pay the interest upon al Tue pns
now issued upon it, why should he ai ide whi Tue 'i'n
Ic Jos or may hereafter with the hoder o bonds
an thc Pacific Divisions One more consideration .
have been informed that Mr. Blar ana is lIvhus ow
Ia l1r
of he present capital stock of the road Adito this oo
mon stok say 100000 preferred stock ahI pesr la
,mud Thai every share OF stock carries vote Is liz
cIit 10 determine whether tie present hOhdlohcig,
Mssrs Rnr * Co. would control the road IN utiie
tion should be eff ctrd upon MI Dali pS".t
Nc Blair proposes that the Farmers Loan "ua "a
Cin,ny h. made trustee for all tho various
TIn Farmers Loan AMI Trust Company Is ana Las wv
the trustee of the Pacific. , -, ,..,a. niyisiea
MIR T,ylor further states that the Pacific pi' Va
bon,s hnyc been oyerssucd 20 the extent OF $500 a
mllc aud that It Is the intention oi tho oo"'"o
ouSt Mr.. Blair.