The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-11-08
CENTRAL RAILROAD OF NEW JERSEY
SYNOPSIS OF THE AGREEMENT AND PLAN SUB


Appended is synopsis OF the scheme submitted to
the directors OF the Central Railroad OF New Jersey,
VINO are comforting with the bondholders stock
holders committee in relation 10 plan for Its reor-
ganization The document says that II may be neces-
sary that said railroad and all it's appurtensnces, fran
chses and property should be sold under foreclosure
either the mortgage Of 1875 called the blanket mort
gage that OF 1874 called the consolidated mort
gage, and TO this end Robert Lenox Kennedy Edgar
Johnson John s. Kennedy and Theodore Drcier, Of
New York, and Edwin N. Lewis are consti-
tuled purchasing committee, empowered by
the subscribers OF the agreement, holders Of
bonds TO carry out the proposed plan OF
reorganization. Article says that this committee
shall II IL is expedient, do without foreclosure
sale without the orgapz ation OF new company
and To- that end may dispose Of The funds, money,
stock, claims, bonds, indebtedness and property,
which under the agreement shall be deposited with
them pursuant TO It's terms, In such manner they
may deem most expedent TO produce such result, or
said committee may proceed to enforce IN sucn man
they may be advised one or both OF The mort
gaRes and under any decree obtained bring 10 sale
Whatever property may be reached thereby and may
take legal proceedings to organ ze u company Upon
any sale made under these mortgages or otncrwisc
the committee may purchase the railways Of The COM
pany and all Its rights and interests in their joint
names in those OF the majority OF them. The COM
mitee shall obtain II practicable the ownership Of
all property OF said company wherever situated, and
the company Il organized shall be organized and
formed under and in accordance with the laws OF the
State OF New Jersey, aud shall DO called "rhe New
Jersey Central Railroad Company"
LIABILITY THE NEW COMPANY.
The following tho terms OF conveyance to new
company
l. SAID now company shall assume the payment the
principal interest the same become respect
vcy, Of the bonds Of the Central railroad Company
Moses Taylor dated december o. ises the principal
IN ease the consolidated mortgage shah not be fore
the principal Of The bonds scared ny said
been ssasd Vim the nss,ss assrains ne same
payment interes, assumed DO Apri 1915
.as 4 there Pc ihsn sny Of The bonds Of sad
called convertible bonds or any OF the bonds Newark
Taroad Company Of New Jsrssy which BY the serms
said mortgage were secured thereby and wnch
upon secured by sid consolidated mortgage the
many Of said bonds issued and secured by said
consolidated mortgage as shah then 90 outstanding not ex
tion hereto assume the payment Of principal con
RAILROAD Company outstanding and secured
by eonsod.ea and The Interest accruinS
vded that the bond provided by said consolidated mortse
mortgage fond sntisned in section u this article;
to s an 81 ss sia % n bonds I
said deed Of provided, take up satisfy and ais
ury in such the said comp shall
And such new eompauy shall also make execute and de-
liver trustees be selected BY said puchas
erring TO such fee, a properly
nghs interest ana franchises OF every decrption OF
plan contained which IT shall thereafter acquire
f. Of s a" hs @ &
dated mort gage. whose nsaes snai; come IN am ume n
part sad morlgage snai 70 subject :. me appova OF
aud form.
The plan goes on to detail tho powers OF the new
company, what leases and agreements may assume,
such the lease OF the Lehgh ana Susquehanna Rail
road, male by the Lehigh Coal and Navigation Com
pany, dated March 81, 1871, and the agreement Of
March 80, 1876, with the N orth Pennsylvania Railroad
Company, Sc
According article the subscribers, &C., to the
agreement within three months from It's date to
deliver TO said purchasing committee at New YORK,
or TO Messrs Brown, Shipley Co., at London. Tor
them, the coupons on the consolidated bonds issued
under and secured by said mort gage, due April July
tobcr l. 1875 and January l, 1879, aud the coupons
on said convertible bonds secured by said mortgage
due May and November !. 1877. and May
and November l, 1875 and any coupons on
Railroad Company secured by sald mortgage due
or before January |, 1879, held by them
respectively, 10 be held by SAID Purchasing Com.
mittee and to receive IN exchange receipt OF said
Purchasing Committee Tor said coupons so deposited
under tins agreement rhey further agree that they
said Purchasing COMMITTEE all the stock held by them
respectively said company, to be held by sad Pur
carrying out the plan herein contained, Receiving
in exchange therefor the recep Of said Purchasing
Committee Tor said stock as deposited under thus
agreement anu simultaneously with the delivery OF
SAID stock they Will each pay 10 said Purchasing Com.
mltee The sum Of $40 per share to- each and every
share delivered receiving exchange therefor tho
receipt OF SAID Purchasing Committee, which sum so
paid shall DO used by sara committee for the purpose
OF carrying out the plan herein iortn the
and sale OF said railways their appurtenances and
equipment under one or both OF said mortgages
Purchasing Committee and the EQUALIZATION OF
"a new company under the laws OF the State OF New
Jersey be called the New Jersey Central Railroad
Company IN which shall be vested the said railways
their alpurtenanccs and equipments SO purchased IN
the manner herein provided for. they will accept ana
shall be entitled 10 receive exchange Tor said stock and
SAID $40 pad per share and Tor the receipt receipts Of
Purchasing Committee therefor as follows, VIZ =
For per cent of si stock the preferred stock Of
said company par Tor the $40 per share paid in
the stock said company par; Tor tue
remaining ninety per cent OF said stock delivered,
the common stock OF said new company AZ par.
The Purchasing Committee are authorized to give to
any holder OF American Dock aud Improvement Com
pany bonds, guaranteed by the Central Railroad OF
New Jersey, who snail sign tins instrument within SIX
months from It's date, receipt entling such holder
the preferred stock OF the New Jersey Central Rail
road Company to the amount At par of his bonds And
the last Two articles OF the agreement are as oows:-
Arr lo-And it is further agreed that il. upon pur-
by said Purchasing COMMITTEES under foreclosure 9, said
blanket and the organization OF the Jersey
General hAiroxd Company, vested vita the
in herein provided in that
noers bonds secured said said
the Central ialroad company OF New Jersey. commonly
called tue consolidated mortgage or any OF the soekhod
OF said last mentioned company shall not have signed
this agreement aud delivered the coupons on their
sad bonds, ana paid tue sun Of 10 for each share
o said stock above provided, then said committee
authorized sell aud shall sell much oil the preferred
common stock OF the New Jersey Central Railroad
Company said ents would have been re-
entitled to under this agreement Ii they mad
had joined hrreir. shall to 70
assentents any dividends they may respectively
In
aud III there Is foreclosure and sale under nd ca
sultj ted then the noDassentient holders OF
bonds secured thereby shall DO excluded from the benefit
other mortgage, pledge trust provided IN thus
But II the foreclosure sale be male under
virtue OF said consolidated then said Pur
chasing Committee horned sell and snail SELL
OF the bonds and Of tile here in
provided be issued In that The New Jersey
Central Railroad Company said non-nssentng houers
have entitled to uneer this agreement u they had
joined therein aud NJ may be necessary to such
aseneuts any dividends they may be estitled
u under snch proceedings ana TO the same and II IN
tie rcOreanzaUn OF SAID the iehigh and Hilke
Coal shal
be judged BEST and holder OF the bonds sid last
mentioned guaranteed by said. the Central Rail
at New halI huya ~, In