The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-10-08
THE NEW JERSEY MIDLAND.

RAILROAD TO PURCHASE THE PROPERTY
COMMISSIONERS FORM OF RECONSTRUCTION
Yesterday meeting OF the bondholders and others
interested in the above company took place at Broad
way and Fulton street in this city plan TO reorgan-
ze the company submitted upon the receipt OF
which a discussion took place. and the meeting finally
adjourned without definite action The synopsis ofthia
report is however, Of enough interest present to our
readers its salient features. II appears that
MOUNTAIN RAILROAD COMPANY
of New Jersey-a corporation duly organized pursuant
to the terms OF its charter and the several
Legislature of the State of New Jersey amendatory
hereot-is engaged in constructing its railway from
Delaware River at Portland the Water Gap where
IL will nersect the South Mountain Railroad Company
of Pennsylvania, the Belvedere Railroad Company
of New Jersey and the Delaware, Lackawanna and
Western Railroad Company, to Dcckertown-a point
on the New Jersey Midland Railway distance OF
about forty miles, for the purpose Of making connu-
line from Harrisburg, Pa, to Poughkeepsie, N Y.
This road Will open new and much needed route to
the coal fields OF Pennsylvania; will make market for
the large deposits OF iron ore oil New Jersey situated
upon the New Jersey Midland with the furnaces in
Pennsylvania, besides largely esseng the cost of fuel
to the New Jersey Midland and the manufacturing in
teress situated near It,
The South Mountain and Boston Railroad Company
propose to acquire by purchase at the foreclosure SALE
the New Jersey Midland Railway Company with all its
property franchises privileges and powers.
Tho South Mountain and Boston Railroad Company
agree TO complete their line from the Delaware River 10
Deckertown by the LIST OF June 1876 operate and
tain the and perform all other acts usually per-
formed by railroad companies.
For tho purpose of purchasing the New Jersey Mid
land Railway Conipany's 'hrst,o ''sccond and ICON
soidated' mortgage bonds issued, sold and outsand
ing well as all coupons upon said bonds due and
paid to August 1876 also stock OF said company the
South Mountain and Boston Railroad Company wish to
issue its several bonds and stocks in certain denom
nations and amounts, giving TO each bondnoder all his
rights and priorities held by him in said road
before foreclosure sale.
The South Mountain and Boston Railroad Company,
Of New Jersey, will issue said purchased road their
first mortgage bonds in two series, "A" and 9B
foows:-
II win issue OF series DAP 81 600 900 of bonds bear
ing date August l. 1885, having thirty years to rum
and in denominations of $1,000 $500 and 500,
with semiannual coupons attached, payable in gold
OF the United States at the rate OF per
per annum. This series of
BONDS WILL ExCHANGEABLE
for one-third of the amount OF first mortgage bonds
outstanding and held by each holder OF the present
New Jersey Midland Railway Company's first mortgage
bonds
The company will issue of its first mortgage bonds
series ''B,n 600 dated August l, 1876 payable
in thirty years, in denominations Of $1,000, $500 and
500, with semi-annua coupons attached, payable at
the rate of per cent per annum in gold coin of
the United States, with the following conditions printed
across the face Of the FIRST six years coupons num-
bered from to H. usive:-"Privllegod
CoMPANY's SCRIP,
as per terms of purchase"
This series Of bonds will be exchangeabe for the bal
ance twohrds of the holders Of the present outstand
ing first mortgage bonds OF the present New Jersey
Midland Railway Company. The said South Noun
tain and Boston Railroad Company will is
sue their income bonds, which bonds shall
be mortgage upon all prior incomes
ofthe road after payments OF interests upon the first
mortgage series 'An and "B in amounts sufficient to
take up the due and unpaid coupons up August l,
1876 the So 600 600 first mortgage bonds of SAID pur
chased road outstanding also the six years privileged
coupons series "B" of said South Mountain and Bos-
ton Railroad Company's first mortgage bonds. The
said company will also issue an amount of its income
bonds sufficient to provide and take up the recelvers
certificates" the UNPAID employees, claims for rights
way and all other debts the said New Jersey Mid
land as shall be adudged by the Court standing ahead
of the first mortgage bonds of said purchased road at
the date of said foreclosure SALE amounting TO the sum
of g..
The income bonds will bear date of August l. 1876
payable fifteen years after date and shall be entitled to
all income of the road up TO per cent currency
per annum after payment OF the two series OF the rss
be entitled for each 500 at all elections Of
the company when the same has been registered upon
the books OF the company.
The south Mountain and Boston Railroad Company
will issue its preferred STOCK in amounts to exchange
dollar for dollar of the second mortgage bonds of the
New Jersey Midland Railway Company, with all unpaid
coupons up TO August l, 1876
Said company will issue preferred stock to the consol
dated mortgage holders to the amount Of bonds SO
lateral will issue stock only for the amount due with
interest to August ], 1876.
Said company will also issue preferred stock to all
floating debt creditors with interest due thereon up to
August /, 1876
The preferred stock shall be entitled to all income OF
the road per cent after all interest has been
paid the first and income bonds that precede said stock
The SAID purchasing road will issue OF its common
Stock share for share In the said Now Jersey Midland,
which shall be entitled to all dividends after payment
OF all claims that precede it-viz, the first mortgage
and income bonds and preferred stock and each share
Of 500 shall be entitled TO one vote at all elections Of
the company.
In consideration Of the acceptance of the foregoing
proposition by the bondhoders Of the New Jersey Mid
land Railway Company, the South Mountain and Boston
Railroad Company will assume TO protect and pay all
receivers certificates unpaid employees rights Of way
and such other claims as shall be adjudged
by the Court prior liens upon said
road ahead Of its several mortgages; and
the said purchasing road to further assure the bond
holders Of their good faith and full intent to carry out
said agreement they further agree to deposit with the
Farmers Loan and Trust Company, Of New York city,
5000 900 Of the first mortgage bonds of the South
Mountain Railroad Company of Pennsylvania as a
guarantee for the faithful performance of said agree
ment.
South Mountain and Boston Railroad from Delaware
River to Deckerown, ~ j., and in order that the
pany may be enabled to complete It's road by June /,
II the bondholders of the New Jersey Midland agree
to the foregoing they to send in their approval to
the Commissioner A. L. Hatch, No. So William street,
with the following blank signed
NEW JERSEY MIDLAND RAILROAD COMPANY
Form No. l.
A. L. HATCH Commissioner for Recognizing the New
Jersey Midland Railway Company, 81 William street,
DEAR SIR, - Of -, State OF -, am the holder
OF - nTSt mortgage DOnuS, uenOmlnatons - anu
numbered - and of - second mortgage bonds, de-
nominations - and numbered -, aud OF -
consolidated mortgage bonds, denominations -
and numbered -, do hereby accept the propo
sition OF the South Mountain and Boston Railroad
Company dated September l, 1875 and desire my bonds
to be 50 recorded by you, and viii furthermore deposit
my bonds with the Farmers Loan and Trust Company
OF New York city, when you so request as desire
them DO represented in the purchase BY the said road
the foreclosure sae also desire to appoint said Trust
Company my true and lawful agent attorney and
proxy.
Dated -, 1877. Signed -.
Witnessed, -. [Seall
Spaces conseoutvey filed with residence
total number Of bonds held description OF bonds FIRST
ond consolidated denomination $780, $500 $1,000 num-
Der of each, date and witness.l
The foregoing proposition would seem TO give bond
holders all rights covered by their original securities
and is Endorsed by letter from Mr. G. A. Wortendyke
the President OF the New Jersey Midland Company in
letter to s. f. 0lmstead and others. 1t is to By hoped
that at length something may be done TO relieve tho
hundreds Of sufferers by the troubles in this corpora
ton.
PRODUCE EXCHANGE.