New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-12-23
A NEW FUNDING SCHEME OF THE CEN,
TRIAL RAILROAD OF NEW-JERSEY.


To the Stockholders and B0RdhoIders: The
Central Railroad Company OF New-Jersey have deter
mined issue certificates Of indebtedness to an amount
not 10 exceed S3000000, in sums OF 800, @0OOi ana
81 600 each PAYABLE in ten years. and bearing interest
nt 7per cent per annum payable sem-annuay on the
first day of March aud September in each year
The Certificates viii be secured by deposting with the
Guarantee Trust and Safe Deposit Company OF Phiade
phia consolidated mortgage bonds OF the Lehgn ana
Wilkesbarre Coal Company, now owned and guaranteed
S GeP bg R vsr1 @ % RI ne
They may be converted at the option OF the holders
into the said consolidated mortgage bonds at par, upon
equitable adjustment Of interest," when presented IN
sums Of not less than $1,000 .a
The company the right 10 redeem the certih-
Gates of indebtedness at any time previous TO maturity
the payment OF five per cent premium aud the accfued
The company win receive these certificates Of indebt
edncss in payment of 20 cent 81 any freight que
them, not including freight and charges colectaole Tor
None of the bonds recently issued, known the ten
been will he used except collateral security Tor
loans They were not intended for sale or allotment
and will be Cancelled as soon as the necessity Iof tne
The negotiation of the proposed loan will place the
company in easy financial position, and will IL Is be-
eved greatly enhance the value OF the stock and secu
No sacrifices have made in raising money and 20
higher of interest than seven per cent has been PAID
for its use except two instances OF trfing amount
either by this company or by the Coal Company.
Notwithstanding the nominaly large uslsacuons SIN IN
the securities OF the company within the past low
mouths heavy decline IN values the books show
that about fonrhs Of the capital stock Is still hed Dy
the same parties who held IL a year ago.
Subscribers may arrfsge 10 pay In instaments or the
whole amount will be received in payment
subscriptions and payments may he made 10 tne fres
dent Edward c. Knight No. 3ls Chestuutst., Philade
pha, To the Treasurer, Samuel Knox, at the Once
OF the Company No. 1l9 BiDerty3t NeW-Iork "h0 are
authorized 10 the proper receipts therefor by order
Of the Board vi Directors, Il. G. KNIGHT, PRESIDENT
Attest SAMUEL Knox Treasurer
For better understanding of the foregoing, 1T is
necessary to refer the statement of the late Pres
dent under date of Sept 8, 1876 which says:
The Indebtedness OF the Wlkesbarre Company, It VIII
he observed, amounts to $G,6l1OO9 20 Dedneng ron
ths the bills and receivable, 81 6SG,Sl4 10,
leaves 1875 3d. The Central Is liable as lnnOisef
for about 100000 OF this amount anu mas also tineu
large OF its Leigh and MlkesOae DOs, 10 DC
used as collateral for other PORTIONS Of IT,
Hence it appears that Large amounts" of the
bonds which are proposed to be deposited with the
Guarantee Trist aud Safe Deposit Company (of
which Mr. f. G. Knight is also the President at the
rate of 90 per cent security OF the new Ger
tIicaes of indebtedness" are already hypOthecated,
probably for the very debts which are pressing for
payment. The foregoing does not state at what
rate the certificates may be subscribed Tor;
therefore il is presumable that the intention
is TO attempt negotiation at par, WINE
the security offered may be purchased IN
the open market at 50, and probably no amount OF
the bonds could be disposed of at go. The privilege
of paving the certificates into the company for 20
per cent of any freight due TO it. while perhaps CIV
ing them a certain market value, is virtually mort
gazing its future cash earnings to that extent fit
has arrived at its present condition in the enjoy
rient of full cash receipts, what are its Immediate
prospects with 10 or 20 per cent OF such receipts
payable in its own paper I'D