The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-03-31
RAILROADS REoRGANIzING.

RAILROADS REORGANIzING.
THE RIGHTS OF ERIE STOCKHOLDERS WHO
pEYER ASSENT UNDER THE RECONSTRUCTION
SCHEME.
The following correspondence has taken place rcla-
tive TO tbe future rights OF stockholders who defer
assent TO the reconstruction scheme:-
lt NEW York, March &C. 1871
DEAR sik-Your relations, together with Mr. John
Lowber Welsh OF Philadelphia, as representatives oil
ton scheme of Erie Railway Company lead US 10
apply 10 you for Information upon the following points
the circular issued by the Farmers Loan and Trust
Company not being sufficiently explicit. viz. :Havo
stock holders, either common pefierred who do not
give ~ their ssssns 70 ov ns me
after TO participate In the saia scheme and upon what
termss An early answer viii much obllge: co
wHITEHOUsE 4 CO.,
RUTTEN 4 BONN
SpEYER & co.
THE REPLY.
New YORK, March 20, 1871.
GExrLEMEN-Wo have bad the honor To receive your
valued favor OF date In which you refer TO our re-
lations with parties in London who have charge OF
the reconstruction scheme Of lhe Erie Railway Com
pauy and IN which you mako tho following Inquiry
Have Stockholders either common preferred, who do
not give in the scheme pay
participate in the said schcme and upon what terms'
Tn article Is OF the scheme of the trustees you will
that all payments alter tho Isl as subsequently
changed the 3lst) inst, will be charged with an adj
ditonal per beyond the amount chargeabc III
the event OF payment bciug made before that date.
In view OF the provisions OF law, 70 DO found IN sec
ton 8 chapter 430 Session Laws OF 1874, which seems
quite clear this subject and oil the scheme OF re-
organization. we have 10 answer your inquiry by say
inc that the shareholders not paying before the 3ls
INST will tho right at any time thereafter and
within SIX months alter Inc ofsanaat,on o. 'nc rev hs
scheme by complying with the terms thereof, whcs
would involve tho payncnt OF ten per cent upon the
iItlt Va MI n
stand that there Is much anxiety among the share.
holders as 10 the disposition 10 DO made OF tho
assessments which may be paid 10 tho event Of
failure In carrying out tho scheme OF reorganization
and that frequent Inquiries have bccn made as 70
whether or not such event the UNITS TO be
refunded. The trustees, by circular dated London,
February o. 1877 reply 10 inquiries upon this SUD-
ect say:-"But they have TO state, IN reply to many
Inquiries that in the event 0 nOnsuccess, the share
holders who pay the assessment may rely It's RETURN
either intact subject 10 very small deduction Tor
necessary expenses These expenses tho trustees can
give the strongest assurance, cannot exceed shilling
Der share even II only half tho shareholders should
come into tho scheme; - and further. that they I'M
tend 10 the assessment fund in English or Unltod
States government securities"
The trustees gentlemen of high position and, so
far as We arc advised, oil uuquestoned responsibility.
Therefore opinion Is that the shareholders can rely
with entire confidence that In the event OF failure TO
assessment, subject to very small deduction for
necessary expenses, will be promptly repaid to them.
Very rcspectiuly yours, f. d. MORGAN,
w JOHN LowBER WELSH.
EMPLOYEES DISCHARGED.
Undcr the retrenchment policy OF Receiver Jewett,
OF the Erie Railway, twenty-six men have been dis
charged from the car shops in Jersey City and pro-
portonae reduction has been ordered In all the shops
along tho line The clerical force has been also re-
duccd within the past month.
REPORT TO BoNDHoLDERs OF NEW JERSEY
RAILROADS OF COMMITTEES REoRaAN1zA-
TON PLAN.
zt.t.o ho1d Of hNnd a ~ fho Nov JOre
and New York Railway Company, the hackensack and
New York Railroad Company, and the Hackensack and
New York Extension Railroad Company was held yes
terday in room a. Drexel Building, at which the an
nexod plan of reorganization was submitted by the
committee appointed at meeting Of the bondhoidcrs
February g. 1877, tor this purpose, Mr.. W. s. opdyke
prcsding:-
Tho committee reported In favor Of letting the
necessary proceedings for foreclosure BIO carried to
decree and SALE and that the property be by
committee of the bondholders for the benefit OF the
parties interested, who shall sign the formal agree
mcnt or plan to be prepared for that
purpose The following outline OF reorganization is
recommended
That there shall issued by the reorgansed company
Of ,d t smS h fn
stock thirty from January l. 1878 to be used
In exchange Hscken,ac and New , YS5k Rail;
bonds OF the Issue OF january ico', nonu
for bond deferred interest up TO January j.
iss hands No Sc .. ,hs co%missse, 100000
Ii exchange for Hackensack and New York Kali
way extension bonds Issue OF 1869 bond for
bond deferred interest up to January l.. 1873,
10 DC Of tSs comm Mite $4,000
rn ~ for locomotives about 5000
To INV balance due on cars, about. ........ 10000
fo w;ss sxses.iSe Collateral $4,000
sq frpras In int assss $4,000
Total. ....... 100000
Second
Second mortgage seven per cent bonds, to mature
i iss M WIN $4,000
To BIO used as fcllows:- ,-f
In exchange fuf Hackensack and New
York Railroad extension bonds, Issue OF
1870 bond for bond .$o33,OO
Srrnns In hands of com mtttec ......... $1,000
'"'P - 100000
Holders second mortgage bonds to rcce've two
shares new with each bond Of 81 900 lieu Of
a GrStt hrea venrs