The New York herald., 1877-11-14
NEW JERSEY CENTRAL.

THE REORGANIZATION SCHEME NOT LOOKED
UPON WITH FAvoR-oPPosITIoN OF BOND
HoLDERs-THE POSITION OF THE WILKES
BARRE COMPANY TOWARD THE CENTRAL
The scheme In relation to the reorganization OF tho
New jersey Central Railroad already published In tho
HERALD, 1t is believed will meet with considerable OPP
position from the bondholders Among tho bond and
stock holders and others Interested there to be
feeling OF uneasness and Is Understood also that
many Of the the ehigh and wilkesbarro
Coal Company. which is at present leased to the New
Jersey Central, fearful that their interests mny
suffer and to protect them have formed syndicate IN
which nearly three millions OF the bonds already
represented Upon this point Mr.. Tnghass. receiver
oi the Lehgh ana WKesbarre. retcent, but inti-
mated that plans Tor the reorganization OF that com.
pany were under consideration and would In time be
submitted to those interested. His company had
nothing TO do with the proposition made behalf Of
the New Jersey Central Railroad.
PROBABLE REJECTION SCHEME
Tho opinion OF Mr.. q. G. Haven, No II Wall street,
one OF the bondhoders, being asked, the following
conversation ensued:--
"What do you think Of the proposed scheme for
the reorganization pi the New Jersey Central road?n
II do not thnkit Will 80 through. The Lehish and
wilkcsbarre Coal Company controls tho entire coal
interest OF the Central road, tho bondhoders Of
the Lehigh Company Will not agree"
"But Is not a largo proportion OF the bonds OF tho
Lehigh Company held by tho jersey Central Com
pauy?"
eyes, tho Jersey Central owns most OF the bonds,
and by iorcclosinp could perhaps make their own
torms; out 1t is very questionable il It would be to
their interest TO ioreclose."
"wnat would be the effect If they did,"
swell, II the New Jersey Central cancelled Its lease
II all unlikely that some other concern would
get the control OF the Lehigh Company
"Wnat Is the company worth now ~
"At the present rates the Lchigh Company Is worth
its actual cost beng aoout $23, 900 0OO The Jersey
Cen raj proposition is equal 10 giving about twenty
i've cents ON the dollar and do believe the prop
osition Will be acccpted.n
"Wnat can the Lenigh bondholdcrs do ABOUT t9n
"fhey could force Tho New Jersey Central 10 lore
close do not believe the proposition made viii
be accepted, and in al probability another PROPOSE
ton VIII be made In my judgment they viii have
either 10 make new proposition or else forccloso.n
does the Jersey Central hold?"
"The Jersey Company owns over So 000 600 OF their
bonds nearly all OF whch hypotnecateu loans.
About 900 600 more arc Reserved prior lo,ns,
aud that-tnc whole ISSUE being about SIS 900 600
leaves So 600 900 IN the hands OF tho public"
What Is the Jersey Central road dong ~
swell, II Is reported that IN the past Ave months
the earnings OF The ROAD have been amply sufficient
cover the running expenses ana tho interest o. the
first mortgage bonds and the consolidated bonds.
believe the receiver Is acting with great skill aud good
judgment in the interest OF the road The bondh
however, cannot be expected to wait forever for their
INTEREST,"
chow would foreclosure affect the bondsYn
"rho first mortgage bonds would undoubtedly In
that event DO worth as much as they are now.'
MR.. JoHNsroN's OPINION.
Mr.. Johnston, OF Brown Brothers Co., stated that
the off VAS made good faith to include all classes
entirely upon the bondhoders II was not improba-
bic that foreclosure might take place At any time
WHAT SAMUEL SLOAN SAYS
Mr.. Samuel Sloan President OF tho Delaware Lack
awanna ana Western Railroad was waited upon and
the following conversation took pace:-.
"What do you think, Mr.. Sloan, of the proposed
scheme for the reorganization OF the New Jersey Gen.
tral Ralroad?"
sAs one the holders OF the securities OF tho COM
pany do not think tho arrangement an equitable ono
to the Lehigh and Wkesbarre bondhoiders l re-
gard the coal property as SO important property
that X the settlement Is not acceptable 10 the holders
oil those bonds u contest would inevitably eusue, as
their value Is not appreciated In the scheme. The
in valuable coal property for preferred stock
based on the SUCCESS oil tho company Tor II the New
Jersey Central Company is deprived OF its prop
cry IL would be serious damage TO the company,
prosperity mainly depending upon coal transportation
The other coal compauies holding, as they do. their
coal properties, may be induced tempted ac-
Quire the Wilkesbarre property better than
those Indicated IN this reorganization scheme It would
seem II the main object OF the reorganization
scheme was to secure the nrst consolidated gage
bondholders who, II Is true, would by foreclosure
wipe ou their indor ment on the WilKcsDarre and
American Dock and Improvement Company's bonds
at the risk Of losing control OF the coal prop
erty. The relief, however, OF the Now Jersey
Central from It's Endorsement OF the Wkcsbarre aud
American Dock and other bonds might DO obtained In
some o,her more equitable mode The American
Dock and Improvement properly has always been
esteemed most valuable by the holders Of the bonds
who now hold mortgage lien on the properly. For
my own part l cannot accept nlty per cf-t
OF preferred stock Tor mort-age liens, aud
l cannot but think that the first consolidated
bondnoders OF the New Jersey Central, OF which /
one, will find u to their interest revise their
scbene OF reorganization with q view TO a more
equitable proposition TO the holders of the Lehigh
and wiKcsbarre and American Dock and I'm
provement bonds, so far rs tho stockhold-
ors In terests are concerned u further exten-
sion oil interest payments the first
consolidated bonds for three five years instead OF
tw0 preserving the mortgage lien OF the coupon until
It's final payment, thus dong away with preference
shares and contingent results. The stockholders
would then have more confidence to pay any install
mcnt tho committee may order Tor hquidating -
current OBLIGATIONS q lie comuauy.n