Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1876-03-09
THE PADUCAH AND MEMPHIS r. B.

TIE PADUOAH AND MEMPHIS z. B
We understand that the Memphis and
Paducah Railroad Company has been
~reorganized, or is about to be, and that
there is a prospect of an early compile.
ton Of the road. The company having
defaulted in the payment Of interest an
application was made by the trustees
named in the mortgage to the United
States Circuit Court, and the road passed
into the hands of Mr.. C. H. Allen as re
c%eiver, by an order OF this court issued
on the 9th Of July, 1916. Since that
time the officers OF the road have been in
constant communication aud negotiation
withthe holders ofthe first mortsge bonds
aud other creditors of the company
They have at length succeeded in making
an agreement with the first mortgage
b~ondholders, which has been already
signed by more than three.fourths in
interest. The plan has been approved
by all the bondhelders who have been
seen, and it has also been signed by
nearly all the stockholders Of the Padu-
can and Gulf Railroad Company, they
agreeing TO surrender their claim for
first mortgage bonds aud to take second
mortgage and income bonds for the
same, thereby enabling the company to
issue and use preferred first mortgage
bonds for the completion Of the line.
The first mortgage b~ordholders, repre-
senting 1851 bonds, agree after the
road is recognized to receive 1851
bonds Of q new mortgage, amount.
ing to $4,000, 900 in exchange for
the old, all coupons to be cut
of to the LIST Of August, 1880, aud for
the amount Of interest they are to re-
ceive 3 second mortgage and income
bond. not bearing interest however, uEtil
the earnings OF the road can be so ap-
piled. This leaves $l,490, 900 frat mort
gage bonds to be used, with the earnings
Of the road which will constantly In
crease, for its completion. The unse-
curedopendebt creditors who would have
been entirely cut of without some ar
rsngement like this are to receive sec.
ond mortgage income bends at eighty
cents on the dollar for the amount Of
their claims. The interests Of all con-
cerned seem to have been protected as
far as possible and the equities OF all
parties respected. The different classes
Of creditors will be protected in the same
order Of priority and proportion
in which they originally stood
The prominent features in this plan Of
settlement are; First, ~stipulstions look
ing to aud providing for the completion
Of the road; second, the security Of the
bondholders who could have foreclosed
the road at any time; third, the protec
ton Of the general or unsecured credi-
tors; fourth, Stipulations looking to the
ultimate security Of tue stockholders
The settlement was arrived at after a
full and free conference, and with the
hearty asSpt of all Immediately con-
cerned. Above all this it strikes us that
the concdA ence Of the stockholders.
creditors pnd bondholders not only pro-
notes tfkir individual interests but
subserves che welfare Of the gen.
eral puHiA and more especially the
people ofIMemphis and along the line
Work will hgin early in the spring, and
before the end Of the year the gap of
6fty.seven miles will be closed, and the
Memphis and Paducah railroad will be-.
come a part OF a grand trunk line from
New Orleans to New York via Louis
vile. The importance Of this road has
been overlooked. When completed and
all the connections are made it will af
ford Memphis the only grand through
trunk line that we can hope to see for
years to come. We congratulate the
stockholders along the line upon the pro-
lection Of their rights and all concerned
upon the prospect Of an early compile.
ton Of the road. 1t has been managed
very skillfully and j%udiciously by Mr..
Allen, the receiver, who will be con.
tinued in control. He has given general
satisfaction to those interested in the
road, and has populsrized the manage
ment with employees, people and every
body, which is a great point gained
Confidence ono restored, difference
adjusted and the road completed, a pros
porous future for it is assured.